Types of Loans

Loans can be categorised into two main types: secured and unsecured, based on the requirement of collateral

Secured loans, like home loans and car loans, involve pledging collateral, offering advantages such as lower interest rates and longer repayment tenures

Two-wheeler loans are secured by the on-road value of the vehicle, while Loan Against Property utilises residential or commercial property as collateral

Gold loans are determined by the loan-to-value ratio. This is calculated by dividing the loan amount by the pledged gold’s value

Secured loans have end-usage restrictions, limiting the purpose for which the loan can be used

Unsecured loans, such as personal loans and education loans, don't require collateral, relying on creditworthiness and eligibility

Personal loans offer flexibility as they have no end-usage restrictions, making them suitable for various financial needs

Education loans cover not only tuition fees but also accommodation and living expenses during the course

Business loans assist entrepreneurs in starting, managing, or expanding their businesses

Professional loans cater to specific needs like starting a medical or accounting practice

Balance transfer loans help reduce interest rates by transferring an ongoing loan to a lender offering a lower interest rate

Top-up loans allow obtaining additional funds over an existing loan after repayment for a specific period