How Many Types Of Loans, It Profit-2023

Types Of Loans:- Loan, which is taken to meet our needs. Different types of loans are given in India. All banks give you loans according to your need. You can take a loan according to your financial need, and fulfil your needs.

Types Of Loans In Bank Of India

  1. Short Term Loan(STL)
  2. Term Loan(MTL)
  3. Long Term Loan(LTL)
  1. Short Term Loan (STL): This loan is taken when you need money only for a short period of time. That is, this loan is taken for at least one year.

2. Term Loan (MTL): This loan is taken for a minimum tenure of 3 years. In this, you have to repay the loan amount till the end of the loan tenure.

3. Long Term Loan (LTL): This loan is taken for a very long tenure, its loan tenure is more than 3 years.

Types Of Loans Available

Different banks in India offer different types of loans. In which some loans are secure, and some loans are secure by them. Which are as follows

  1. Secured Loan: In this type of loan, the consumer has to pledge something or thing with the bank. Bankers do this because if for some reason you are unable to repay the loan, then they keep your mortgaged thing or item with them, seize it. The financial cost in this is very low in contrast to volatile loans. The interest rates of such loans are low.

2. Unsecured Loan:- In this type of loan, you do not need any kind of guarantee, hence it is call an unsecure loan. In this, the bank checks the bank papers of your previous months, then after consultation gives you the loan. The interest rates of such loans are slightly higher.

Types Of Loans

Secured Loan Types

  1. Home loan

2. Gold loan

3. Property loan

  1. Home Loan:- Home loan is taken for the purchase of house/flat, construction of a house, improvement/fixation of an existing house, or development of a house/flat. If you are a first time home buyer, you get a small exemption in income tax return on paying the principal and interest of your home loan under Sections 80C, 24B and 80EEA of the Income Tax Act. The tenure of the home loan is up to 25-30 years, in which time you can easily repay this loan. Home loans have different interest rates in different banks, but generally the home loan interest rate is 6.66% per annum. Which you have pledged as loan amount. Lending institutions accept 75% to 90% of the value of that property.

2. Gold Loan:- Before giving a gold loan, the bank checks the purity and weight of your gold, then decides the loan amount according to its weight and purity. The bank interest rate of gold loans starts from 10.49% and averages up to – 11%. The loan should be repaid in monthly instalments so that the loan can be repaid till the end of the tenure and gold can be taken back by the borrower. The banked gold loan amount per gram starts from Rs 2200 for 22K and goes up to Rs 2800 for 24K gold. This loan is easily available.

Types Of Loans In India

3. Property Loan:- In this, the consumer has to pledge property, insurance policies, FD certificates, mutual funds, shares, bonds and other assets. Then after checking all these, the amount of your loan will be decide base on the value of that property. It requires you to make timely repayment so that you can get your property back before the end of the loan tenure. If you are unable to repay the loan tenure due to any reason, the bank can also sell the property to recover the defaulted money.

Types of Unsecured Loans

1. Personal loan
2. Car loan

  1. Personal Loan:- This loan is an unsecured type of loan, in this you do not need to mortgage anything. A personal loan is mostly a loan taken for financial needs, marriage/marriage, health-relate, subsidy for the down payment of house/vehicle and personal needs. This loan is easily available as it is unsecure. In this, the bank checks the bank papers of your previous months, then after consultation gives you the loan.

2. Car Loans:- Vehicle loans finance the acquisition of cars and four-wheelers. In this, all the banks keep offering you various flexible schemes for car loans. In which in fixed, interest rates are pre-determine. And flexible interest rates keep on changing.

Documents required for loan

  1. self-employed applicants
  • Identity Card:- Aadhar Card, Pan Card, Passport and Voting Card
  • Passport Size Photo + Application Form
  • Bank statement of last three months
  • Account Description
  • Profit/Loss Statement and Balance Sheet for the last 2 years
  • certificate of occupation

2. salaried applicants

  • Passport Size Photo + Application Form
  • Identity Card:- Aadhar Card, Pan Card, Passport and Voting Card
  • Address proof
  • latest salary slip
  • bank details

How To Apply For The Loan

First of all, you have to decide what type of loan you need. You get to know about the loan, loan amount and loan tenure according to your needs. Then you can apply online for that loan application. Or you can also apply for the loan by visiting your nearest bank branch. The bank will then process your application and contact you to inform your side within the stipulated time frame.

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