The Types of Bank Loans in India
As you will know that people need a loan or loan to meet their different needs. Which he takes from a bank or financial institution, and then returns the amount taken by the loan to that bank or finance institute along with interest. So today, through this post of ours, we try to tell you how many types of loans are there?
1. Short Term Loan – Short repayment time in this loan is less than one year.
2. Medium-Term Loan – The time for repayment of money in this loan is between 1 year to 3 years or 5 years.
3. Long Term Loan – The repayment time in this loan is more than 5 years.
Let us talk about how many types of loans banks or financial institutions give in India?
1. Personal Loan
Personal loan or non-secured loan means a loan taken for oneself. Although all loans are taken for themselves, but personal loans mean taking loans for their personal work, such as paying children’s school fees or buying an expensive gift or taking home something similar, then all these needs The loan taken is a personal loan. Actually for them, each bank has its own rate of interest. Today, State Bank of India (SBI) is charging an annual interest ranging from 12.50% to 16.60% for personal loans, while HDFC BANK is charging annual interest ranging from 10.99% to 20.75%. By the way, the interest rate of personal loan is higher than all other loans. For personal loans, the bank does not ask you for more docments, just by looking at your salary slip, you give the loan. You can get a personal loan for up to five years.
2. Gold Loan
In this loan, you can get a loan by placing your gold in a bank locker. In such a loan, the amount is given according to the quality and value of the gold you have deposited. By the way, it is generally seen that the bank gives 80% of the value of your gold in the form of a loan. Gold loans are usually taken in emergency situations. The interest charged on this loan is less than that of a personal loan. Currently, the interest rate for gold loans is 11.15% in SBI and 10% per annum in HDFC. The Types of Bank Loans in India
3. Security Loan (Security Loan)
In this loan, banks give loan by keeping your security paper. But the question arises what are security papers? If you have already invested in a mutual fund, demand share government scheme or bond, then these are your security papers, which the bank gives you a loan. If you are unable to repay the loan, the bank seizes your security paper, and sells it in the market. You can pledge your security paper to the bank. Bank gives you bank overdraft facility based on this security paper. Over draft means if you have zero balance in your account, you can withdraw money from your account, this is called over draft.
4. Property Loan
A property loan is a loan in which the bank mortgages your property papers. One can get this loan for a maximum period of 15 years. Loan is usually 40% to 50% percent of the property’s value. The Types of Bank Loans in India
5. Home Loan
The loan taken for buying a house is called home loan. You not only take a loan to buy a house, but you can take a loan from the bank by adding the cost of building a house, stamp duty, registration of the house, and a lot of expenses. The bank gives loans ranging from 75% to 85% of the total cost of building a house. You have to do it yourself to build a house worth the remaining money. Suppose you took a loan for a plot which is worth 10 lakh rupees. For this, you have to deposit 30 percent of it, ie three lakhs in the bank. The bank will give you the remaining money. The repayment time for a home loan varies from 5 years to 20 years. The terms of a home loan include a variety of fees other than interest, such as: processing fees, admissible charges, legal fees, assessment fees, etc.
6. Education Loan
It is not impossible for every student to study in his favorite institute. If someone wants to study at Oxford University, then the fees there are so much that it is quite difficult to think about going to study there. In such a situation, he can take an education loan from the bank. The bank determines its repayment before granting education loan. Bank loan is given to the student who has the ability to repay it. The bank works in two ways to find out the student’s potency. Either the student’s guardian’s income is seen or what university is the loanee student going to, how is its performance? It is also seen. After completion of studies, student can pay loan. A guarantor is required to take an education loan. It can also be a relative of a student. In today’s debt, the state bank of India charges an interest rate of 10.70% for education loans above 7.50 lakhs and 9.95% for 7.50 lakhs annually. .
7. Vehicle or Car Loan
When you take money from a bank to buy a vehicle, it is called a vehicle or a car loan. Car loans are given at fixed or floating rate just like every loan. A fixed rate means that at the time when you are taking a loan, you have to pay the entire loan at that rate. And the floating rate means that if the interest decreases or increases after taking a loan, then you will have to pay accordingly. In a car loan, the ownership of the car remains with the bank until you return the entire loan amount to the bank.
8. Corporate Loan
When banks give loans to big people like Ratan Tata, Vijay Mallya, Reliance Industries, Tata Birla, they are called corporate loans. According to the current rules, the bank can loan up to 55% of its core capital as a loan to a large company. But in view of the increase in the recent default case, the RBI has said that such a rule will come into force by 1 January 2019, when banks can give 25% of their capital to a single corporate as a loan. So that risk can be avoided. Types of Bank Loans
So friends today, through our post you have learned about the types of loans that banks or fine institutions provide in India. We hope that you have now got the information about the types of loans. Thank you.
The Types of Bank Loans in India