Types of Bank Loans in India: As you will know that people need loans or loans to meet their different needs. Which he takes from a bank or financial institution, and then returns the amount received by the loan with interest to that bank or finance institute. So today, through this post of our Types of Bank Loans in India, we try to tell you how many types of loans are there?
There are three types of coins according to the time period.
- Short Term Loan – The repayment time in this loan is less than a year.
- Medium-Term Loan – The time for repayment of money in this loan is between 1 year to 3 years or 5 years.
- Long Term Loan – The repayment time in this loan is more than 5 years.
In Types of Bank Loans in India, let us talk about how many types of loans banks or financial institutions offer in India?
Types of Bank Loans in India
Personal loan or non-secured loan means a loan taken for self. Although all loans are taken for themselves, but personal loans mean taking loans for their personal work, such as paying children’s school fees or buying an expensive gift or taking home something similar, then all these needs The loan taken is a personal loan. Actually for them, each bank has its own rate of interest.Today, State Bank of India (SBI) is charging an annual interest ranging from 12.50% to 16.60% for personal loans, while HDFC BANK is charging annual interest ranging from 10.99% to 20.75%. By the way, the interest rate of personal loan is higher than all other loans. For personal loans, the bank does not ask you for more docments, just by looking at your salary slip, you give the loan. You can get a personal loan for up to five years.
In this loan, you can get a loan by placing your gold in a bank locker. In such a loan, the amount is given according to the quality and value of the gold you have deposited. By the way, it is generally seen that the bank gives 80% of the value of your gold as a loan. Gold loans are usually taken in emergency situations. The interest charged on this loan is less than that of a personal loan. Currently, the interest rate for gold loans is 11.15% in SBI and 10% in HDFC annually.
In this loan, banks give loan by keeping your security paper. But the question arises what are security papers? If you have already invested in a mutual fund, demand share government scheme or bond, then these are your security papers, which the bank gives you a loan. If you are unable to repay the loan, the bank seizes your security paper, and sells it in the market.You can pledge your security paper in the bank. Bank gives you bank overdraft facility based on this security paper. Over draft means if you have zero balance in your account, you can withdraw money from your account, this is called over draft. Types of Bank Loans
A property loan is a loan in which the bank mortgages your property documents. One can get this loan for a maximum period of 15 years. Loan is usually 40% to 50% percent of the property’s value.
The loan taken for buying a house is called home loan. You do not take a loan just to buy a house, but you can take a loan from the bank by adding the cost of building a house, the cost of registration, stamp duty of the house and many more. The bank gives loans ranging from 75% to 85% of the total cost of building a house. You have to do it yourself to build a house worth the remaining money. Suppose you took a loan for a plot which is worth 10 lakh rupees. For this, you have to deposit 30 percent of it i.e. three lakh in the bank.The bank will give you the remaining money. The repayment time for a home loan varies from 5 years to 20 years. Home loan terms include various types of fees other than interest, such as: processing fees, administrative charges, legal fees, assessment fees, etc.
It is not impossible for every student to study in his favorite institute. If someone wants to study at Oxford University, then the fees there are so much that it is quite difficult to think about going to study there. In such a situation, he can take an education loan from the bank. The bank determines its repayment before granting education loan.Bank loan is given to the student who has the ability to repay it. The bank works in two ways to find out the student’s potency. Either the student’s guardian’s income is seen or the university where the loanee students are going,How is his performance? It is also seen. After completion of studies, student can pay loan. A guarantor is required to take an education loan. It can also be a relative of a student. In today’s debt, the state bank of India charges an interest rate of 10.70% for education loans above 7.50 lakhs and 9.95% annually for up to 7.50 lakhs. Types of Bank Loans.
When you take money from a bank to buy a vehicle, it is called a vehicle or a car loan. Car loans are given at a fixed or floating rate just like every loan. A fixed rate means that at the time you are taking a loan, you have to pay the entire loan at the rate that is the interest rate. And the floating rate means that if interest decreases or increases after taking a loan, then you will have to pay accordingly. In a car loan, the ownership of the car remains with the bank until you return the entire loan amount to the bank.
When banks give loans to big people like Ratan Tata, Vijay Mallya, Reliance Industries, Tata Birla, they are called corporate loans. According to the current rules, the bank can loan up to 55% of its core capital as a loan to a large company. But in view of the increase in the recent default case, RBI has said that such a rule will come into force by January 1, 2019, when banks will be able to give 25% of their capital to a single corporate as a loan. So that risk can be avoided. Types of Bank Loans
So friends today, through our post ‘Types of Bank Loans in India’, you have learned how many banks or fine institutions provide loans in India, we hope that now you have got information about how many loans Are of the type. Thank you.