Categories: Business

Different types of loans available in India for personal needs

Photo: GOOGLE

Loan Products

new Delhi. If you are feeling short of cash due to Corona crisis and want to meet your needs by taking loans from banks, then keep in mind that there are many ways where you can take easy loans on better terms. In fact, banks charge a lot of interest on personal loans, while if your income has been affected due to some reason, then the possibility of personal loan also almost ends. However, banks can still provide cash to people in many other ways, whose interest rates are better than personal loans.

Pension debt

Many banks, including SBI, provide loans to pensioners for personal expenses. For this, SBI charges interest ranging from 10.6 per cent to 12.6 per cent. Banks offering loan in lieu of pension often give priority to those customers whose pension comes in their bank account.

Fixed deposit

If you have made a fixed deposit in a bank, then you can avail the loan against this deposit if needed. Banks provide loans from 70 to 90 percent of the deposit amount. However, the condition is that the loan deadline cannot exceed the FD maturity deadline. Such loans are easily availed by the bank having FD.

Loan against LIC policy

If you have a LIC policy, you can raise funds at a better rate than a personal loan. Banks and NBFCs also lend on LIC policy. The loan amount varies depending on different banks. At the same time, the interest rate is less than the personal loan. If you want to take a loan on LIC's policy, you can contact the bank or the regional office of LIC with the receipt of the premium paid. Along with this, many banks also lend on shares and mutual fund schemes.

Gold loan

Corona is proving to be the most profitable gold loan in the midst of crisis. In fact, with the rise in the price of gold, the loan to value ratio from the government has also been increased to 90 percent. All major banks in the country are offering gold loans. Between 8 and 18 per cent interest is being charged for gold loans. The bank will mortgage your jewelry in exchange for the loan from you. You have to pay interest from time to time. After the loan matures, you can redeem your jewelry by paying the principal.

Property loan

If you have a property, you can raise the money by pledging it in the bank. There is also a better interest rate offer than a personal loan. However, the experts recommend using this method when you have to raise a large amount and you do not have any other security to administer it. In this, the bank asks for information on property papers, income papers or returns etc. Banks do look at the source of your income for loan on property, in fact, banks do not take much risk in this loan product due to the difficulties faced by the sale of property.

This post was published on August 25, 2020 9:23 pm

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