List of Different Types of Bank Loans in India 2022 By All Banks

List of Different Types of Bank Loans in India In 2022 By All Banks – Loans can be used for various things in today’s world. It can be used to finance start-ups to buy equipment for your newly purchased home. Let’s talk about the different types of loans available in the market and their specific characteristics that make these loans useful to customers.

A loan is essentially the amount borrowed for a certain period of time. The borrowed amount needs to be repaid with a predetermined amount of interest calculated on the principal. There are different types of loans in India that can be divided into secured and unsecured loans.

List of Different Types of Bank Loans in India 2022 By All Banks

• Personal Loans
• Credit Card Loans
• Home Loans
• Car Loans
• Two-Wheeler Loans
• Small Business Loans
• Payday Loans
• Cash Advances – These loans are offered by credit card issuers and allow credit card users to withdraw cash from an ATM machine using the credit card.
• Home Renovation Loan
• Agriculture Loan
• Gold loan
• Loan Against Credit Card
• Education Loan
• Consumer Durable Loan
• Loan Against the Insurance Schemes
• Loan Against Fixed Deposits
• Loan Against Mutual Funds and Shares

List of The required documents for personal loans :

• KYC documents that include Aadhar card, driving license, voting card etc.
• Salary slips of the last two months and income proof for self-employed professionals.
• Savings/current account statements.
• A copy of the Income Tax statement.
• Form 16.
• RBI Registered Loan App List 2022, RBI Registered Loan Company

Types of Loans : Based on the Security Provided

Secured Loan

Unsecured Loan

These loans require the borrower to pledge collateral for the money being borrowed. In case the borrower is unable to repay the loan, the bank reserves the right to utilise the pledged collateral to recover the pending payment. The interest rate for such loans is much lower as compared to unsecured loans.

Unsecured loans are those that do not require any collateral for loan disbursement. The bank analyses the past relationship with the borrower, the credit score, and other factors to determine whether the loan should be given or not Given To Customer. The interest rate for such loans can be higher. Main Reason Of Highest Interest Rate Is as there is no way to recover the loan amount if the borrower defaults.

Types Of Bank Loans Based on the Purpose

• Education Loan
• Personal Loan
• Vehicle Loan
• Home Loan

Loan Name	Details
Educational Loan	Education loans are financing instruments that aid the borrower pursue education. The course can either be an undergraduate degree, a postgraduate degree, or any other diploma/certification course from a reputed institution/university. Main Aim Is To get Education Degree With The Help Of This Loan.
Personal Loan	The purpose of taking a personal loan can be anything.
Vehicle Loan	Vehicle loans finance the purchase of two-wheeler and four-wheeler vehicles.
Home Loan	Home loans are dedicated to receiving funds in order to purchase a house/flat, construct a house, renovate/repair an existing house, or purchase a plot for the construction of a house/flats.

List Of Important Factors Lenders Look at to Approve your Application For Loan

• Credit Score
• Income and Employment History
• Debt-to-Income Ratio
• Collateral
• Down Payment
• Previous Bank Records