Need funds in India? There are many kinds of loans, like different flavors! Here’s a basic look:
1. Loans with a Promise (Something You Own):
If you need big funds, lenders might ask for something valuable you own as a promise. If you can’t pay back, they can take it. These often have lower cost.
- House Loan: For buying a home. The home is the promise.
- Car/Bike Loan: For buying a vehicle. The vehicle is the promise.
- Gold Loan: Give gold, get funds. Gold is the promise.
- Loan on Your Property: Use your home or land to borrow.
- Loan on Savings/Funds: Use your bank funds or shares.
2. Loans Based on Trust (Your Good Name):
Here, you don’t need to promise anything. Lenders trust you’ll pay back based on your past record and current income. These often have higher cost.
- Personal Loan: For anything! They trust you.
- Education Loan: For school. They trust you’ll get a good job.
- Credit Card Loan: Borrowing from your card.
- Quick Small Loans: Fast funds, often online.
3. Loans for Specific Needs:
- House Loan
- Car/Bike Loan
- Education Loan
- Personal Loan
- Gold Loan
- Loan on Your Property
- Loans for Home Items: Fridge, TV, etc.
- Wedding Loan
- Medical Loan
- Pension Loan
4. Loans for Different People:
- For Regular People: (All the above!)
- For Businesses: To help them run and grow.
- For Farmers: To help with farming.
5. Other Ways to Get Funds:
- Overdraft: Spend a bit more than you have in your bank.
- Line of Credit: Funds ready for you to borrow.
- Combining Loans: One easy payment for all.
Basic Idea: Different loans for different needs! Some need a promise (something you own), others just trust you. Always know the details before you borrow!
