1. Secured loans These are loans that do require collateral, i.e., you have to provide an asset to the lender as security for the money you are borrowing.
Types of secured loans
1. Home loan
Home loans are a secured mode of finance, that give you the funds to buy or build the home of your choice. The following are the type of home loans available in India:
Land purchase loan: Purchase land for your new home
Home construction loan: Build a new home
Home loan balance transfer:Transfer the balance of your existing home loan at a lower interest rate
Top up loan: Can be used to renovate an existing home or have the latest interiors for your new home
2. Loan against property (LAP)
Loan against property is one of the most common forms of a secured loan where you can pledge any residential, commercial or industrial property for availing the funds required. The loan amount disbursed is equivalent to a certain percentage of the property’s value and varies across lenders.
3. Gold loans
The organised Indian gold loan industry is expected to touch new heights every year, thanks to flexible interest rates offtered by financial institutions.
These are loans that do not require collateral. The lender lends you the money based on past associations, and your credit score and history.
1. Personal loan :- Offering an instant flush of liquidity, a personal loan is one of the most popular types of unsecured loans. However, since a personal loan is an unsecured mode of finance, the interest rates are higher compared to secured loans.
2. Short-term business loans :-Another type of unsecured loans, a short-term business loan can be used to meet their expansion and daily expenses by various entities and organizations.
- Working capital loans
- Machinery loans and equipment finance
Flexi Loans
A facility whereby you can avail funds from your approved limit and as when required and pay interest only on the amount used. You can withdraw on your loan limit, any number of times and prepay when you have extra cash, at no extra cost. Such a unique facility gives you the freedom to be in full control of your finances unlike rigid term loans and offers you savings on your EMIs by up to 45%. Here, you also have the option to pay only interest as EMIs, with the principal payable at the end of the tenor.