Personal loans are a great way to help with big expenses when you might be short on liquidity. A major advantage of personal loans is that consumers can avail this option without providing any collateral for the loan. There are many kinds of personal loans available for customers now, ranging from wedding loans to travel loans and much more. Let’s take a look into the various types of personal loans financial institutions provide in India.
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Wedding Loan
Marriages in India are not just a life event but a call for a grand celebration. Often these celebrations put a major burden on our liquidity. From the venue to catering, events, jewellery, and many other things, these expenses can easily pile up and make a dent in the pocket. Lenders provide personal loans for wedding expenses to help with these expenses. The bride, groom, or their family members can avail a wedding loan to get help managing the wedding budget.
Travel Loan
With the ever-increasing travel trend, people want to explore and visit more and more places. As much as travel sounds attractive, it might not be feasible in your current budget. Financial institutions offer travel-specific personal loans to help you deal with expenses related to flights, hotel accommodations, shopping, and much more. You can avail these kind of loans to help plan a honeymoon or a trip with family and friends.
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Education Loan
Lenders provide education loans to help students realise their educational goals and achieve their dreams of securing higher education, even if they lack the liquidity for it. Education loans help students cover tuition costs, college or school fees, or other such academic expenses.
Home Renovation Loan
Lenders provide home renovation loans to individuals to help cater to the expenses related to repairing, remodelling, or refurnishing their homes. This loan can help customers tend to the needs of their home without having to arrange the funds all at once.
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Festival Loan
Festive season in India is a long one including Durga Puja, Diwali, Onam, and many other festivals. While the period involves family and friends getting together and celebrating these occasions, it can often cause financial stress for some of us. By providing a festive loan, lenders intend to provide financial assistance for expenses specific to the festivities and help customers celebrate their festivals without worrying about money.
Medical Emergency Loan
Emergencies don’t come announced and they can often cause great financial stress for individuals or families. Lenders provide medical emergency loans to help deal with the hospitalisation and medical expenses so people can tend to the emergencies without worrying about the financial aspect of it.
Consumer Durable Loan
A consumer durable loan is a personal loan meant to help customers purchase expensive appliances like air conditioners, refrigerators, TVs, laptops, smartphones, and others.
Additionally, some lenders also provide personal loans to help with pension, agriculture, and debt consolidation expenses. Financial institutions also provide top-up loans to help individuals get more funds on their existing loans and repay them within their existing tenure. However, these loans are only available for customers if they have a history of regular repayment.
As easy as personal loans are to get, it is to be kept in mind that lenders do charge higher interest rates due to increased risk on these loans. Therefore, it is important to be careful while availing these loans to ensure timely payments and not make it a habit to depend on them.
