Home Loan
A house loan or home loan essentially means an amount of money that a financial institution or bank has lent to buy a property. Home loans are an adjustable or fixed interest rate and the terms of payment. … The property is mortgaged to the lender as security before the loan is repaid.
Types of Home Loan
This is the loan that one takes for purchasing a home.
This loan covers expenditure related to repairs of your home or even renovation.
This loan comes in handy when you are building a new house.
Someone wishing to buy a plot of land for constructing his/her own house can avail this loan.
Suppose you plan to add another room, garage, bathroom or kitchen to your home. This is the loan that you should apply for and this also comes in handy if you are planning to have another floor.
These are loans taken by two people or even more. For instance, spouses can apply for joint home loans.
Business Loan
A commercial loan is a loan intended primarily for business purposes. It involves, as with all loans, creating a debt which will be repaid with added interest.
What are the features of a business loan?
Foremost, a business loan interest rate remains fixed throughout the tenure. However, depending on the profile of the borrower, a lender may also offer a floating rate of interest, in which case the interest rate will vary through the tenure of the loan. Typically, rates vary between 11%- 19% (subject to change).
A bank loan for business is offered up to Rs. 50 lakh. Be mindful that the quantum of the loan depends on the profile of the borrower. However, credit history is also crucial while the loan application is processed. If you have a decent credit score, it will be easier to get a higher amount at an attractive rate of interest.
Vehicle Loan
A Vehicle loan (also known as an automobile loan, or auto loan) is a sum of money a consumer borrows in order to purchase a car. Generally speaking a loan is an amount of money that is lent to an individual, a business, or another entity. The party that lends the money is known as the lender, while the party borrowing the money is called the borrower. When taking out a loan a borrower agrees to pay back the full loan amount, as well as any interest (a percentage of the loan amount, usually calculated on an annual basis), by a certain date, typically by making monthly payments.
Personal Loan
Generally speaking a personal loan refers to money that is borrowed from a financial institution, known in these situations as the lender, for personal (as opposed to business) use. Personal loans tend to be for relatively small amounts, especially when compared to larger, long-term loans, such as home loans (also known as mortgages). While personal loans are typically used to pay for one-time expenses (such as medical bills, home repairs, or a significant purchase), a borrower (the individual receiving the loan) is usually not required to disclose the specific purpose for the loan. Indeed many borrowers seek personal loans simply to have a large sum of cash, which they can spend at their discretion.
Loan Against Property
A Loan against Property is a secured loan availed against a commercial or residential property kept as collateral with the lender. As the funds come with no end usage restriction, borrowers can utilise the funds for various purposes such as business expansion, wedding, child’s education, etc.
