Types of Loans
Loan
In India, there are several types of loans available to individuals and businesses. Here are some common ones:
Personal Loan
These are unsecured loans offered by banks or financial institutions to individuals for various personal needs like medical emergencies, travel, education, or debt consolidation..
Home Loan
Home loans are specifically designed for purchasing or constructing a house or property. They can also be used for renovation or extension of an existing property.
Car Loan
These loans are for purchasing new or used cars. The car itself usually serves as collateral for the loan.
Education Loan
Offered to students to cover education-related expenses like tuition fees, books, accommodation, etc. These loans often have relaxed repayment terms.
Business Loan
Meant for business purposes, these loans assist in starting a new business, expanding an existing one, buying equipment, or managing working capital.
Gold Loan
This loan is secured against gold jewelry or ornaments. Individuals pledge their gold as collateral to avail funds.
Loan Against Property
Also known as a mortgage loan, LAP is secured against a property already owned by the borrower. These funds can be used for various purposes, like business expansion or personal needs.
Loan Against Securities
Borrowers can pledge their securities such as stocks, bonds, mutual funds, etc., to avail loans from banks or financial institutions.
Personal Overdraft
This facility allows individuals to withdraw funds from their current or savings account even if the account balance is zero, up to a certain sanctioned limit.
Rural Loan
These loans cater to the specific needs of rural areas, including agriculture loans, Kisan Credit Card (for farmers), and loans for rural businesses.
Consumer Loan
A Consumer Loan is a loan that banks offer to customers to buy household goods and appliances and even personal devices.
Doctor Loan
Being a doctor is an honorable profession, and we at HDB recognize your services and provide a range of schemes for easy loans.
Notes : Each loan type has its own eligibility criteria, interest rates, repayment terms, and conditions, varying across different banks and financial institutions in India.