Personal Loan Types – Differences You Should Know About
Since the past few years, personal loans have experienced a leap and have become the most preferred choice of the middle-income group in India. Getting a personal loan is no more an elaborate affair as it has met the diverse needs of many people during a financial crunch. According to RBI, roughly 95% of incremental non-food credit in 2017-2018 was accounted for by personal loans. Getting a personal loan is easier than ever, with the emergence of NBFCs and private lenders blanketing the lending market.
Personal loans are unsecured loans extended to eligible borrowers in lieu of timely repayments at an affordable rate of interest over a flexible repayment tenure to meet diverse needs like higher education, wedding, debt consolidation, medical emergency, home renovation, and more.
Here are the popular types of personal loans offered in India and their significance:
- Wedding Loan
Weddings in India come with elaborate expenses. Being an important occasion in India, we all wish to keep such an event cherished and long-lasting and would go to any extreme to see it being fulfilled. Seeing this as a desperate need during financial issues, many opt for unsecured personal loans for weddings which have instigated several lenders in the market to improve their features and offer competitive interest rates.
The family can avail such a loan of the bride or groom or any family member where the loan could be tailor-made according to the need. You can avail of affordable interest rates on a wedding loan at your preferred repayment tenure without any collateral.
- Travel Loan
Everyone loves to holiday at their dream destination. Be it a solo escape to a hill country, a family holiday closer to the beach, or a honeymoon getaway to a secluded island, people go to any lengths to be at their long-desired destination once in their lifetime. But a holiday has expenses too – train or plane tickets, hotel accommodations, tours, excursions, sightseeing, food, activities, and much more.
The good part is that there are specific loans even for holidays, commonly known as travel loans. Such loans do not require any collateral, and hence, the procedure is easy and simple. Just present a few basic KYC and income documents to qualify your personal loan eligibility. That’s it!
- Education Loan / Personal Loan for Education
Education loan is one of the oldest loans for several years. Every parent wants the best for their children, and hence, several NBFCs offer education loans at affordable interest rates and easy online application procedures. Whether you wish to go abroad for higher education or apply for this loan to pay for your child’s tuition fee – an education loan can be used either way for the betterment of one’s education. You can even avail of an education loan to pursue an executive MBA or to fund the expenses of an additional degree or diploma to have better career growth.
- Home Renovation Loan
Like an education loan, a home loan is also very common in India. Either we invest it in reconstruction or for buying a property. It has been observed that when it comes to renovating our home, we linger it due to massive expenditure or end up compromising on several things. Hence, identifying such a need, home improvement loans are offered for us to take care of the refurbishing cost, purchasing materials, labour cost, etc. Apart from giving a new shape to our homes, such a loan boosts up the economic value of any real estate in the market.
- Medical Emergency Loan
An emergency comes without warning, especially when it comes to health. An urgent health issue together with a financial crunch can land us in a fix. More than our savings, a medical emergency loan becomes the lifeline during such times. A personal loan for a medical emergency is usually a loan utilised to fund unforeseen medical expenses. You can use this money to pay hospital bills, doctor’s fees or purchase expensive medication. With an emergency loan from Clix Capital, you can face sudden expenses without letting go of your savings or investments. You avail all the benefits you wish without pledging any security or collateral.
- Debt Consolidation Loan
A personal loan for debt consolidation is a collateral-free loan that you can use to pay off your high-interest debts. Consolidating your debts is an effective way to pay off your debts and credit card balances and simplify your payments using just one loan. Depending on your amount owed and your loan terms, it may also help you save money and time. Many lenders offer unsecured personal loans that you can use to consolidate your debts. The application process is simple and you may get your loan approval quickly.
Apart from the above, Clix Capital offers many types of personal loans like debt consolidation loans at competitive interest rates. Right from the application procedure to getting approved and disbursal of the loan amount, the entire process is online, easy, smooth, and hassle-free for everyone’s convenience. Moreover, there is no restriction on the end-use of the loan amount; the borrower is free to utilise the sanctioned loan amount for any purpose (except for illegal activities).
Who is Eligible for a Personal Loan?
Eligibility norms to get a quick personal loan differs from one lender to the other. Talking about Clix Capital, the personal loan eligibility criteria are as follows:
- You should be 25 to 58 years of age.
- You must be a citizen of India.
- You should be a salaried person drawing a salary of at least ₹ 25,000 every month.
- You should be working with your current employer for at least six months, and you should have a total work experience of at least 12 months.
How To Apply for a Personal Loan?
The online personal loan application procedure at Clix Capital is easy and quick. To get an instant personal loan, follow these simple steps:
- Visit the Clix Capital website.
- Check your credit score and ensure that it is more than 725. (A lower credit score doesn’t mean personal loan rejection; it will get you higher personal loan interest rates).
- Fill up the personal loan application form and submit it.
- Get your KYC and income documents verified online, which takes just a few minutes.
- Once you receive your loan approval, accept the loan offer.
- Activate the e-mandate for regular EMI payments on time.
Clix Capital, a reputed NBFC, has been offering personal loans of up to ₹ 25 lakhs with a flexible repayment tenure of 12 to 48 months. The proceeds may be used for nearly anything from purchasing a new electronic device to paying hospital bills and renovating homes. If you’re eligible for a personal loan, this is an easy way to access instant funds to handle a planned or emergency financial challenge at hand. Apply now and get an instant personal loan in 15 minutes*.