Know The Types Of Online Loans Available In India
Retail loans in India are expected to be worth around Rs.96 trillion by 2024, almost doubling that of the present loan book. One can credit a part of this growth to various digital modes of lending, which have eased the borrowing process significantly. One can avail all types of loans online today, thanks to various platforms created by financial institutions operating in the country. Below given is an insight into the types of advances you can avail online with minimum hassle.
Categories of online loan types in India
Individuals can opt for almost all kinds of loans through the internet today. Nevertheless, one can classify the options into two broad categories, namely –
- Unsecured loans
These are types of credits for which a borrower does not need to provide any asset as collateral. Lenders extend such advances to eligible applicants, with an impressive credit history and rating, among other parameters like income, city of residence, etc. Usually, unsecured loans are short-term advances with a limited amount offered as principal. Personal loans and business loans are two of the common unsecured financing options in circulation.
- Secured loans
When learning about the types of loans, one should also understand what secured loans represent. These are credits where the borrower must collateralise an asset he/she owns against the financial assistance from lenders.
Generally, these are high-value advances available for a substantial tenure. Examples of secured credit include home loans, loans against property, gold loans, etc. Here, the principal amount approved is prominently based on the value of the asset collateralised.
Now that you possess a brief idea about secured vs unsecured loans, here are the various online loans available under these two broad classifications, not arranged in any particular order.
Personal loans are one of the most common unsecured credits. Education loan, car loan, wedding loan, travel loans, etc. are all types of personal loans dedicated to varying financing needs of customers. A personal loan, in general, also comes with an unrestricted end-use. Potential borrowers looking for such an advance can approach a lender either physically or online to avail such credits. If one decides to avail a personal loan online, he/she would need to visit the lender’s official website and apply for the advance through this portal.
For instance, when looking to apply for a personal loan for travel, all you need to do is select a suitable lender and visit their website for an application.
Similar to personal loans, business loans are often available as unsecured advances and come with high-value funding. An entrepreneur looking to infuse additional capital for business expansion and/or growth only needs to fulfil minimum eligibility requirements to apply for the advance.
Thanks to the availability of characteristic features like unrestricted end-use, unsecured advances like a personal loan can help you fulfil all your wishes conveniently.
Individuals planning to buy a residential property or land can avail home loans online from various Indian lenders. However, they must first check home loan eligibility and arrange for all necessary documents before availing the said credit. Home loans are secured credits, where the property you buy is mortgaged to your lender until you pay off the dues.
Loan against property
Another secured credit available online is a loan against property. Here, one can mortgage a residential or commercial property he/she owns to avail a high-value advance. Like home loans, a loan against property comes with an extended repayment tenure, thus creating a long-term liability.
These are some of the commonest types of loans available online. Individuals looking to opt for these will still need to meet the basic criteria. Additionally, they must check the documentation process at length. Some lenders allow you to upload photocopies of documents online while others may require you to submit them physically to a representative visiting your doorstep after completing an online loan application procedure.
Pre-approved offers are another important benefit of availing loans online. Lenders like Bajaj Finserv provide these offers to reduce time consumption and hassle involved with loan processing. Such offers are available on a range of credit options, including personal loans, business loans, and others. You can check your pre-approved offer by submitting your full name and phone number.
Before deciding on a financing option from the types of loans available online, ensure you consider your specific requirements. Personal loans are ideal when you do not have a fixed expenditure plan, but require funds, nonetheless. Similarly, housing loans would be suitable when you are in the market for a residential property.