Due to the unsecured nature, a personal loan is quite a popular financing option in India. One needs to be creditworthy to get a personal loan. However, the rate of interest of the personal loan is quite higher than any other kind of secured loan. But due to various advantages, personal loans are quite popular among the Indian population.
The six main types of personal loans in India include:
1. Education loan
The higher education loans help to cover expenses related to your higher education. Students need a CO applicant like a parent or guardian while applying for this loan.
2. Wedding loan
The wedding loan helps families and couples deal with the wedding finance. It helps fund various wedding expenses related to jewelry, venue, or decoration. Generally, this loan's interest rate is higher in the peak season than that in the off-season.
3. Medical loan
During any medical emergency, the medical loan helps pay the medical bill. Apply for one and pay the heavy bills without any inconvenience.
4. Short term personal loan
Digital lenders offer short-term personal loans for small personal loans that the borrower can pay in a few days or months.
5. Vacation loan
A vacation loan would help you while you are planning for a vacation. This loan would help take care of the travel bill without pinching your pocket. Nowadays, people tend to use credit cards, but a holiday loan can get the available funds with a lower interest rate.
6. Pension loan
The pensioners can borrow from their pension to deal with any financial emergency.
These are the 6 main types of personal loans in India that help a person during a financial emergency. But before applying for a personal loan, you should compare the loan only to get the advantage of the loan.
If you do not compare the loan, you might end up taking a loan with a high rate of interest. It can make the loan a burden for you.
