Personal loans are one of the popular forms of loans that help to fulfil large financial needs. If you are not having enough knowledge about loans, this article is the right place for you. There has been seen unbelievable growth in taking personal loans by multiple borrowers in recent years. Banking institutions have so many offerings for their customers to meet their individual needs. Here are a few types of personal loans described below:
- Travel Loan
People who love travelling can opt for this loan. Alternatively known as holiday loans or vacation loans, one can travel around the world using this loan. This loan comes with the extra benefit of travel insurance coverage to get maximum protection.
- Education Loan
For many years, this loan has been one of the most preferred personal loan forms by lenders. Parents who want their children to get admitted to prestigious institutions in or out of the country can take this loan from the bank and later pay it up. Also named school fee funding, this loan is used to pay the huge school fees of the child so that they can have a great future ahead in life.
- Wedding Loan
In India, people consider a wedding one of the important life events. Hence, they are used to expenses a lot throughout the ceremony. It’s a dream for many to make the wedding one of life’s memorable events, so they don’t compromise with anything arranged.
Considering huge demand, many lenders have started offering personal loans designed for weddings to help lenders fulfil their dreams. These loans are generally taken by would-be grooms brides or any family member of the couple. The flexibility of customizing the loan amount helps meet the individual’s needs.
- Home Repairing Loan
Today, most home buyers consider taking this personal loan form to remodel their houses. It’s seen that most times, people postpone working due to the shortage of necessary amount or unable to manage other expenses.
Considering the real need, lenders have decided to offer home renovation loans to help borrowers purchase new materials, repair buildings, and labour costs. Through this loan, the clients get an opportunity to boost their home value by balancing with the economy.
- Appliances loan
Identifying the ever-increasing demand for buying a mobile phone and other appliances, various lending organizations like ICICI personal loan have started offering appliances and mobile phone loans so that customers can opt for exclusive purchases. You will be surprised to know that some lending organizations offer insurance coverage with the loan amount.
Reasons for Taking Personal Loans
People usually prefer taking different forms of personal loans for the following reasons:
- Get a flexible repayment facility
- The documentation takes less time; thus, granting loans is quite easy. Borrowers only have to submit some important documents like address proof, identity proof, photos, and income proof to get the personal loan in time
- The eligibility criteria are relatively simple
Some financial institutions even offer other kinds of personal loans to ensure that customers get their required money in hand.
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