There are diverse personal loan types offered by different banks and non-banking financial companies (NBFCs). Personal loans come with no collateral, and while they are easy to get, their interest rates can be higher than your normal loans.
One of the oldest and most popular types of personal loans, is an education loan. A professional degree in a good institution can cost quite a fortune, including tuition, boarding cost of living, and airfare. An education loan serves as a far better alternative than liquidating your investments or tapping into your retirement fund.
Weddings are considered as once-in-a-lifetime events by most people. And while they can be fun and wholesome, the series of events and hosting thousands of guests definitely costs a fortune. Marriage loans can be availed by one or more family members to pay for various expenses like catering, banquet hall, wedding attire etc.
With the world opening up in the post-pandemic era, people have started becoming a bit more indulgent and travelling to explore new lands and cultures Using a travel loan, you can vacation to your heart’s content and pay for the expenses in convenient EMIs. A travel loan can be used to cover costs such as airfare, hotel/resort fees, visa charges, and travel insurance, allowing you to travel confidently and comfortably.
Medical emergencies can occur anytime, and are unannounced. Although you may find it simpler to use your credit card or savings account to pay for small-to-medium expenses, in the case of long-term healthcare it may not suffice. A medical loan can take care of the hospital bills, consultation and treatment bills, the cost of medicines, and more, Depending on your need, more than one family member can apply for a loan from multiple lenders at the same time.
If you’re looking to carry out any home improvement, renovation, or repairs, you can apply for a home repair/renovation loan. Possible examples include water-proofing of walls, installing digital security systems, remodelling interiors, building a modular kitchen, or even adding a room.
Online shopping and the eCommerce industry have become hugely popular for buying electronics and consumer goods of all sorts. Electronics Loans allow you to buy the laptop, tablet, or smartphone you need, and also cover the cost of the gadget’s insurance.
Many lenders offer schemes such as No-Cost EMI and Zero Down Payment that effectively allow you purchase the product without having to pay any amount upfront and incur no additional charges while paying through monthly EMIs.
A newer and highly customised personal loan type that is rapidly gaining popularity is the pension loan. Specially curated for retired people in their twilight years, the loan helps them maintain an independent life. Typically, the sanctioned amount is in proportion to the monthly pension being drawn by the pensioner.
Do you want to apply for a personal loan? Here is a list of all the documents you will need for your application.
Fi Money provides instant loans that arrive directly in your savings account. These are pre-approved personal loans made available to select users with good credit scores. On Fi, this process is 100% paperless, and the loans are provided at competitive interest rates — where each user remains in control with complete visibility of all details. Plus, you can avoid EMI late fees by setting up automatic in-app payments. Our licensed partner bank assigns an eligible loan amount to each user (up to ₹5 lakh).
With financial services having become highly digitised, a personal loan can easily be availed online with the bare minimum documentation. All the aforementioned personal loan types can be conveniently applied online in a paperless manner, making the process hassle-free and disbursals quick, as long as you meet the eligibility criteria set by the lender.
An unsecured personal loan is one that can be taken without any collateral to be offered by the borrower. All it takes is a healthy credit score, some basic e-KYC documentation, and a formal loan application. The sanctioned amount can be used for specific purposes and repaid with interest over the agreed-upon repayment tenor.
There are different types of personal loans such as education loan, wedding loan, travel loan, medical emergency loan, home renovation loan, consumer durables loan, and a few other types as mentioned in the section earlier.
The best loan for personal use depends on various factors such as your credit score, financial situation, and borrowing needs. However, options like personal loans or line of credit are commonly used for personal purposes due to their flexibility and ease of access. It's important to compare interest rates, terms, and fees from different lenders to find the most suitable loan for your specific requirements.
Loans with collateral, such as secured loans backed by assets like a home or car, tend to have lower interest rates compared to unsecured loans like personal loans.