Over the past years, there has been a rise in the number of individuals applying for a personal loan. A study indicates that 77% of India’s working population depends on personal loans to make ends meet. The reason for this is the flexibility of usage, allowing an applicant to use the loan amount for a multitude of reasons.
This rise in demand has led to different types of personal loan surfacing for individuals per their requirements.
Types of personal loan available in India 2021
Personal loans are currently the fastest-growing consumer credit option in India. The steady growth of this funding option has led to the introduction of different types of personal loan depending on an individual’s requirement.
1. Wedding loan
Weddings in India entail a long list of expenses, including decorations, catering, venue, etc. This requires an individual to have access to substantial monetary fundings to sponsor their grand wedding dreams. For this purpose, instead of emptying all savings accounts or fixed deposits, individuals apply for a wedding loan. It comes with an easy application process and ensures quick disbursal.
2. Home renovation loan
To improve property value, home renovations have become a necessity. However, the entire process requires substantial funds to meet such big-ticket expenses. For this purpose, certain institutions like Bajaj Finserv offer personal loans for home renovation. Therefore, give your home an instant makeover with home renovation loan.
3. Travel loan
Financial crisis should never get in between an individual’s will to travel. However, a long list of expenditures comes with travelling like hotel costs, transportation costs, flight tickets, etc. However, with access to a small personal loan, individuals no longer need to halt their travel plans. Applicants can assess the amount required and accordingly apply for a travel loan.
4. Debt consolidation loan
Keeping track of multiple payments and debts can be stressful. Not to mention, missing out on interest payments or EMIs will negatively impact an individual’s credit history, causing the CIBIL score to drop. Therefore, to create a healthy financial status, individuals can opt for a debt consolidation loan. This will require individuals to remember one due date for each month’s personal loan interest instead of tracking multiple payment dates. Therefore, reduce the financial strain and save on EMI by consolidating your existing debt.
5. Higher education loan
Pursuing higher education in India or overseas requires a considerable amount of funding. Therefore, one can complete their desired educational course with the help of an education loan.
6. Medical loan
Medical emergencies can be sudden, requiring substantial monetary funding. While there are medical insurance policies that exist to provide assistance, however, they don’t cover all expenses. So instead, individuals can apply for a medical loan online. It will provide access to funding within 24 hours.
How to get a personal loan
Here is a step-by-step process on how to get a personal loan-
Step 1: Fill an online application by entering personal, financial and employment details.
Step 2: Choose loan amount and tenor.
Step 3: Click on “Submit.”
Step 4: The representatives of the financial institution will get in touch with the applicant after receiving the application.
Step 5: Submit necessary documents for verification.
Step 6: After proper verification, representatives will sanction the loan at the earliest.
Therefore, to avail any of the aforementioned types of personal loan, select institutions like Bajaj Finserv provide access to loan amounts of up to Rs.25 lakh. Also, individuals can opt for flexi loan facilities wherein the individual can withdraw a certain amount from their total sanctioned amount and pay interest on only the withdrawal.
Also, to simplify the loan application process, opt for pre-approved offers. To check your pre-approved offers, enter your name and contact details.
Hence, if any individual is interested in applying for any type of personal loan, they must consider their repayment capacity and cost of loan. It will help them estimate their required loan amount.