One must accept several rules and guidelines before taking a loan. A personal loan is a type of loan that takes much less documentation than other loans. Usually, the banks give personal loans to others. They have to repay that amount within the time. That was written in the terms and conditions. And during that tenure, that person has to pay the interest of that amount to the bank. The interest can be monthly or weekly. The interest depends on the period mentioned in the terms and conditions paper.
Types of personal loan
Banks offer different types of personal loans. Loans are given to people for different purposes. In India, more than 8,9 different personal loans banks offer. The major reasons for personal loans are –
- Wedding loan
A destination wedding or planning for a honeymoon in different countries can take a considerable amount of money from your savings. For wedding expenses, many banks offer your personal loans with less interest. The period of a wedding person loan is short.
- Personal loan for business
This loan is for those who want to start a new business. To start a fully-fledged business, you need a lump sum of money in the backup. Every central or private bank offers you a personal loan for starting a business. The interest rate in this type of loan depends on the period and the amount of money you have taken.
- Education loan
If you want to study abroad or at a well-known University, you need a medium amount of money. The scholarship amount can be enough for those who want to study at world-known Universities like MIT or Cambridge. In that case, the education loan can help you to achieve your future dream. The interest on this loan starts from that time when you get a job.
- Medical loan
Everyone saves a considerable amount of money in their savings for medical purposes. There is a myth that a severe problem can take all your life savings in a minute. No one wants to lose their loved ones, so banks offer them medical loans if they are suffering from any medical problem. People take insurance for medical purposes, but sometimes it will not be enough. For that type of case, medical loans can be a better option for them.
- Travel loan
Many people have a dream of traveling and exploring the unknown. For those who want to travel the world, a travel loan can be their best plan. If anyone wants to travel or explore a new country and doesn’t have sufficient money, he can borrow money from the bank and repay it with a small amount of interest.