Different Types of Personal Loans

Today, personal loans are helping millions of Indians meet their urgent need for cash. And with different types of personal loans available in the market, getting access to credit has become easier than ever.

Got last-minute wedding expenses? A marriage loan is there to your rescue.
Want to give your home a makeover? A home improvement loan can help.

Don’t want to delay your travel plans any further? Get a travel loan to book your tickets.

Read this blog to know the different types of personal loans, so you can get cash for every need.

What are the Different Types of Personal Loans?

If you’re choosing an unsecured personal loan, you can use it anywhere you like (no questions asked).

But selecting the right type of personal loan can speed up the application process, ensuring you get the money you need without any delays.

Here are 6 types of personal loans that you should know about:

1) Marriage Loan

A wedding is incomplete without unexpected expenses. But that doesn’t mean you compromise on your memorable day.

Need cash for catering or want to splurge a little extra on your wedding look? Get a marriage loan so that nothing gets in the way of your perfect day.

2) Travel Loan

Making travel plans means spending money on tickets, accommodation, insurance, and a long list of other items.

Short on cash but still want the best experience? Get a travel loan to get cash for these expenses and enjoy your well-deserved break without compromises.

With Zype, you can get approved for a travel loan in less than 60 seconds. Just complete your application by submitting your PAN & Aadhaar to get a personal loan up to ₹5 lakhs.

Also Read : What are the Different Types of Loans 

3) Home Improvement Loan

Renovating your home involves expenses like renovations, repairs, and furnishings. In these situations, you can use a home improvement loan to transform your house.

If you choose to take an unsecured loan from a lender, you can get a home renovation loan without pledging any collateral.

4) Medical Emergency Loan

With a medical emergency loan online, you can get instant access to cash. You can speed up the process by opting for lenders who offer loans without any document uploads, give instant personal approvals and quick disbursal.

Medical emergencies never come with a warning. This is exactly why you should always stay prepared.

With Zype credit line of up to ₹5 lakhs, you will always have instant access to money. You can take cash from the credit line whenever you like and always be prepared for times like these.

5) Education Loan

Planning further studies can be an exciting phase of your life. But this also comes with expenses like tuition fees, study material, etc.

To cover all these costs, you can take an education loan. This way, you can focus on your studies without worrying about how you will cover your expenses.   

There are many lenders who offer education loans that are unsecured. So, unlike education loans where security is required, you won’t need to give any collateral.

6) Debt Consolidation Loan

Debt consolidation is when you combine all your ongoing loans from different lenders into a single personal loan with a comparatively lower interest rate.

You can take a debt consolidation loan to pay off all your ongoing loans. This way, you will only need to pay one EMI per month and protect your credit score from any further damage.

Process of Applying For Different Types of Personal Loans in India

With the rise in the number of online credit providers in India, you can easily apply for a personal loan.

To complete your application process, you’ll have to submit your personal information and documents (depending on your lender’s requirements).

Then, based on your credit profile, the lender will evaluate your eligibility and offer you a loan amount. If you accept the offer and the loan terms, you will receive the money directly in your account.

Make sure you repay all your EMIs on time to avoid any penalty charges. Missing your EMIs can damage your credit score.

Also Read: Consequences of missing your EMIs

What is the Eligibility For a Personal Loan?

To complete your personal loan application, you need to meet your lender’s eligibility criteria.

While the eligibility criteria differ from lender to lender, there are some common requirements most lenders follow:

• You should be 18 years or above.
• You should have a valid PAN or Aadhaar card.
• You should have a stable source of income.
• You should have a good credit history.

Note: The eligibility criteria may be different for different lenders. For example, Zype is an instant loan app that offers personal loans to salaried individuals who have a valid PAN card and a minimum monthly salary of ₹15000.  

Also Read: Get Instant Personal Loan for ₹15,000 Salary

Documents Required for Personal Loans

Different lenders require different documents to offer you a personal loan. Usually, these are the documents you will require to apply for a loan.

1)  PAN card

2) Aadhaar card

3) Proof of income (salary slips or bank statements)

4) Proof of address (electricity bill, rent agreement)

5) KYC documents

Please note that the required documents may be different for different lenders.

Want to apply for a personal loan with zero document uploads or paperwork? Download Zype app where you only need your PAN number and Aadhaar number to complete your application.  

What are the Benefits of Taking a Personal Loan?

Here are some common benefits that you get with a personal loan:

1) You can use it anywhere you like

Personal loans come with a flexibility of where you can use them. Whether you need cash for an emergency or want to buy something new, you can get the instant cash loan with no questions asked.  

2) No Collaterals Required:

Unsecured personal loans don’t require any collateral. This means, you don’t have to pledge any of your assets to get the loan.

3) You Can Improve Your Credit Score

When you repay your loans on time, it automatically improves your credit score. Doing this can help you build a stronger credit profile that can help you get better loan offers from lenders. 

What are the Risks of Taking a Personal Loan?

While there are many benefits of taking a personal loan, there are some risks associated with it.

If you don’t use your personal loan carefully, you can face some of these consequences-

1) Penalty Charges & Late Fees

If you don’t repay your EMIs on time, you will be charged a penalty charge or late fees on your loan. The more you delay your EMIs, the higher late fees you will be charged.

2) Damage to Credit Score

Every time you miss your EMI, it is reported to the credit bureau. This negatively impacts your credit score and reduces your loan eligibility.

 3) Overborrowing

A common risk associated with taking a personal loan is that you may end up borrowing more than you can repay your personal loan. This is one of the reasons why people land up in debt. 

Conclusion

There are different types of personal loans easily available in the market. With Zype, you can get one personal loan for all your needs, whether big or small.

Need cash urgently? Get cash instantly! On Zype, you can complete your loan application in less than 8 minutes, get approved for a loan within 60 seconds and get the money in your account on the same day.