In the modern world, loan is no longer an unknown term. People choose loans for many purposes. This can be for marriage, travel, home buying, higher education, and many other reasons. If we discuss what is a loan or what is the meaning of loan then basically, loan is the amount taken from an individual or organization which we use to manage some unexpected expenses or deal with financial emergencies. When a person borrows money from a bank or from any other financial institutions to meet his needs, it is called a loan (Loan). The borrower has to repay the loan amount along with interest to the lender within a certain time interval. There can be many reasons for taking a loan, such as building your own house, buying a car, doing business or education etc.
Personal loan is an unsecured loan, in which you do not need to mortgage any property. It is given by the financial institution and you can use it for your personal needs such as medical expenses, home repairs, or emergency expenses. It is repaid in easy installments and the application process is simple.
Loan Type Description Term
Secured loan is a loan in which the borrower has to mortgage a property (such as a house, car or land), which is called collateral. The interest rates on this loan are low and the loan amount is high.
Unsecured loans (such as personal loans) do not require mortgage of any property, based on credit score and income. Its interest rates are high and the loan amount is limited.
Secured loans must be backed by a mortgage equal to the amount borrowed. The collateral property is secured to operate as a right of the lender which can be forfeited if the borrower fails to repay the loan. Compared to unsecured loans, these loans have lower interest rates. Secured loans are further divided into the following categories, this will help you understand how many types of these types of loans are there.:
Gold Loan: Gold has long been considered one of the most popular asset classes. For gold loan, you have to pledge gold jewelery or coins as security.
Loan against Securities (LAS): Loan against securities is a loan in which you pledge your shares, mutual funds or life insurance policies against your loan amount to the bank as collateral. Loan against securities is usually offered as an overdraft facility in your account after you deposit your securities.
Loan Against Property (LAP): One of the most common types of secured loans is loan against property. You can mortgage any residential, commercial or industrial property to get the necessary finance. The loan amount given varies by lender and is equal to a particular percentage of the value of the property.
Home Loan: Home loan is a type of secured credit that allows you to buy or build your dream home. Following are the types of home loans offered in India:
Corporate/Business or Business Loan: Corporate/business or business loans are given to small and medium-sized firms to help them meet various needs. These loans can be used for a variety of things that help the company flourish such as, buying equipment, purchasing goods, paying employee salaries, marketing expenses, paying business loans, paying administrative expenses, And even starting a new branch.
Vehicle Loan: Vehicle loan is a type of loan provided by banks and financial institutions to customers to buy a vehicle. Under this loan, customers can immediately buy their favorite car, bike or other vehicle and gradually repay the loan amount in the form of EMI. The interest rate and tenure of a vehicle loan can vary, depending on the credit history of the customer and the terms and conditions of the lender.
Unsecured loans are those in which no property is mortgaged. Financial institutions offer different types of loans without any collateral depending on various factors, such as repayment history, credit score of the borrower and other considerations. However, compared to other loans, this type of loan has a higher interest rate in India. Following are several forms of unsecured loans that you can use for your needs.
Personal loan is one of the unsecured types of loans that offers instant cash. It is available at higher interest rates than secured loans as it is unsecured loans. If you have a good credit score and a high and consistent income then you can get this loan at a cheap interest rate. Personal loan can be used for a variety of things, including: wedding expenses, holiday or traveling abroad, education loan, etc.
We saw what a loan is and how many types it has. With a loan a person can get financial assistance and fulfill his needs. There are many types of personal loans. Each of these types has its own characteristics and its use depends on the needs of the person. With this, online loan application has become easier in the modern world. This system makes applying for a loan easier and faster. In the online process you have to fill the prescribed form, submit the required documents and your loan is approved by the appropriate financial institution.
Personal loan for marriage: To meet the expenses incurred in wedding ceremonies, a personal loan is taken for the wedding. It covers decoration, food, space, and other wedding related expenses. This loan can be easily availed without mortgaging any property.
Personal loan for education: It is a loan taken by students to pursue higher education. It covers tuition fees, hostel fees, and other education related expenses. It is usually taken by students and their parents for personal loan for education.
Personal loan for medical: Personal loan for medical is taken to meet medical expenses during medical emergencies. This includes hospital bills, medical expenses, and other medical services expenses. This loan can be availed quickly and without any property mortgage.
Personal loan for travel: Personal loan is taken for travel to meet the expenses of going on holidays or traveling abroad. This covers flight tickets, booking hotels, and other travel related expenses. This loan provides instant funds for travel.
Personal Loan for Home Renovation: Home renovation loans are used for home improvements, repairs, and renovations. This includes painting, changing furniture, installing new fittings, and other structural improvements. This loan can be easily availed without mortgaging any property and helps in making the house modern and comfortable.
There can be many benefits of taking a loan, which can overcome your financial crisis and make your dreams come true.
Document requirements vary for salaried and self-employed applicants at Hero Fincorp. It is advisable to check the required documents in advance to ensure a seamless and hassle-free application process.
Before applying for a personal loan from Hero Fincorp, make sure you meet the eligibility criteria. These include your age, monthly income, work experience and Indian citizenship. Personal loan eligibility criteria are simple and easy to fulfill.
Before applying for a personal loan, it is important to know the cost of the loan, such as interest rates and processing fees. At Hero Fincorp, personal loan interest rates are competitive and other charges are nominal.
Apply for Hero Fincorp Personal Loan with a few easy steps.
Loan is an important financial instrument that helps individuals and businesses meet their financial needs. Through different types of loans, people can meet their different needs, such as buying a house, getting an education, buying a vehicle, and starting a business. It is important that the terms and interest rates of the loan are well understood before taking it so that any financial problems can be avoided in future.
1.How to take personal loan immediately?
You apply online on Hero Fincorp Loan App. Upload the required documents, if the credit score is good then you can get loan approval in a few minutes.
2. How much loan can be availed on Aadhar card?
Identity is verified based on Aadhaar card, but the loan amount depends on your income, credit score and the policy of the lender.
3. How much loan can one get on 10th mark sheet?
10th mark sheet is not usually a valid document for loan. Identity, income and residence proof are necessary for the loan, hence it is difficult to get a loan on it.
4. Can a student get a personal loan in India?
Yes, students can apply for education loan or personal loan. This usually requires a guarantee or co-applicant.
5. What documents are required to apply for a loan?
Identity proof (PAN card, Aadhar card), residence proof (electricity bill, ration card), income proof (salary slip, bank statement), and application form are the required documents for the loan.
6. How important is credit score to get a loan?
Credit score plays an important role in loan approval; Having a good score gives you the possibility of getting a loan and better interest rates.
7. Can one get a loan without guarantee?
Yes, unsecured loans like personal loans can be availed without mortgaging any property, but interest rates can be a little higher.
The information provided in this blog post is for informational purposes only. The content is based on research and opinions available at the time of writing. While we strive to ensure accuracy, we do not claim to be exhaustive or definitive. Readers are advised to independently verify any of the details mentioned here, such as specifications, features and availability, before making any decisions. Hero Fincorp does not take responsibility for any discrepancies, inaccuracies or changes that may occur after the publication of this blog. The option to rely on the information presented here is at the reader’s discretion, and we recommend consulting official sources and experts for the latest and accurate information about the featured products.
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