types of loans
types of loans :If you need a loan, you have several options. There are many types of loans.
The process of availing of each loan may be different. Certain types of loans can be given only for certain specific purposes. For example, a home loan is available only for a home purchase or home repairs. A car loan is available for buying a car and an education loan for studies.
The interest rate may be different on different types of loans.
Home Loan
Most people have to take a loan to buy or build a house. The interest rate of home loans is also less as compared to other loans.
You also get tax benefits on the home loan repayment. Keep these few things in mind while taking a home loan. In this post, you can learn about the various home loans available from the State Bank.
You can also get an interest subsidy on a home loan under Pradhan Mantri Awas Yojana (PMAY).
Personal Loan
A personal loan is an unsecured loan. That's why the interest rate is also high. But you can get this loan very quickly. But yes, the bank will definitely check your income and credit score before giving the loan. If the credit score or CIBIL score is low, you may not get the loan.
Read this post to get complete information about personal loans.
Loan Against Insurance Policy
If you have taken a traditional life insurance plan, then you can also take a loan with the help of that policy. Note that you will not get this loan on term plans and ULIPs. Available only on Traditional Life Insurance Plans (Traditional Life Insurance Plans).
Since you are taking a loan from your policy itself, you should get the loan easily. I have discussed in another post how you can take a loan from your LIC policy.
Gold Loan
If you need a loan and have gold ornaments at home, you can take a loan by pledging those gold ornaments. You will get a loan in jewelry worth 60-75% of the value of gold.
Do note that gold loans are of short duration. If you are not able to repay the loan, then the bank or gold loan company will sell your jewelry and recover your loan.
Property Loan
If you have a house or property, you can take a loan from the bank by mortgaging it. But keep in mind, if you are not able to repay the loan, the bank can sell your property.
You can read this post for complete information about property loans.
The loan from PPF Account (PPF Loan)
If you have a PPF account, you can also take a loan from your PPF account. Note that you can take a loan only for a part of your deposit amount. You can take the loan only from the third to the sixth year. So there are many bonds in PPF loans.
You can read this post for more information about loans from the PPF account.
Car Loan
You can take a car loan to buy a car. You can also take a car loan to buy a used car. The loan tenure is usually 3-5 years.
Read here to know more about car loans.
Education Loan
If you need money for higher education, then you can take an education loan or an education loan. The interest rate on education loans is also low and you also get tax benefits on repayment of education loans.
You do not even need to pay interest while studying. After completion of your studies, you can start paying the loan.
Read this post to know more about SBI Education Loan.
Loan Securities
Here if you have shares, bonds, or mutual fund units, you can also take a loan by pledging them. You will only get a loan of 50-60% of the value of your securities.
Note that if the value of your shares starts falling, then the bank can sell your investment and recover your money. And yes, you cannot sell your investment before paying off the loan.
According to my, it is foolish to take such a loan. It would be better if you sell your investment and use the money.