Professional Documents
Culture Documents
are:
Uses/Eligibility/Repayments:
Unsecured loan are used for education-related expenses (like Tuition, previous school
fee, living expenses, books and other expenses like transportation costs).
In case you are not currently earning while studying then you may need a suitable
cosigner, like a parent, friend or any relative or eligible adult.
Some loans offer the option of repayment post graduation and other flexible repayment
terms.
College parents loans These are also unsecured loans to cover education related
expenses like Tuition, previous school fee, living expenses, books and other expenses
like transportation costs. Parents can be a co-signer for loan if the student is working
as well as studying. Moreover no collateral is needed.
Loans for Parents These are unsecured loans to meet education related expenses
like childs tuition fee, uniforms, previous school fee, living expenses, books and other
expenses namely transportation costs. This loan is for parents and other adult relatives for
their children who are attending non-public, private, religious, military elementary and
secondary schools countrywide.
http://www.deal4loans.com/loans/education-loan/types-of-educational-loans/
1) Home Loan-Home loan as name suggest is the loan against buying property. Every individual
currently have dreams to have their own home. To make affordable best option is home loan.
Again their are sub-categories of home loans which are as below.
You may also find different variant of home loans other than above. But I listed basic type of
home loans.
2) Personal Loan-It is the loan granted to fulfill your expenses which ranges from buying some
expensive electronic gadgets to booking your air tickets Yes people used to use this facility
for anything they can. They forget that usually rate of interest on such loans will be higher than
other types of loans. But still to have something in advance end up them to borrower of such type
of loans. Here we may find two types of loans
3) Car Loan or Vehicle Loan-This is usually used to meet your financial requirement when
one is planning to have his dream car or bike. It is usually a secured loan where collateral is your
vehicle and in case of default lender may recover it by taking back your vehicle. But some
lenders offer unsecured loans where your credit score matters more.
4) Education Loan-This is actually a handy tool for parents who not planned well for their kids
higher education. For a detailed view on this visit my earlier post Know all about Education
Loan features.
5) Gold Loan-This was one of the easiest and fastest way of loan when gold rate was at its
peak. But currently lot of lenders may not feel it better collateral due to falling in gold price,
especially gold loan companies. Recently RBI banned any gold loans against gold ETFs and gold
mutual funds. Eventhough it forms easiest and fastest way of getting loan but better to look for
risks involved in it, especially when you are dealing with NBFCs.
6) Loan against Insurance Policies-You can use your insurance investment as either collateral
or take loan from insurer itself if that policy is eligible for loan. Usually loans will be available
after 3 years of policy period. You will get loan easily on your policy from insurer. But other
method to take loan is to pledge your policy document with banks and take loan on that. LIC will
offer you loan on your policy with the interest rate of 10%, which I think competitive pricing
compare to other type of loans.
7) Loan against Bank FDs-This is one form of loan where your collateral is your bank FD
itself. Suppose you have bank FD of around Rs.10,00,000 then you are usually eligible to get
loan upto Rs.8,00,000. But interest rate will 1-2% higher than your FD rate. But still this form of
loan is also fastest and best way.
8) Loan from PPF or EPF-You can avail loan from PPF when one satisfies certain conditions.
For detailed view on the same visit my old post PPF-Loan and Withdrawal. You can avail loan
from EPF too. But you can avail loan from EPF only for special purposes like purchase of plot,
medical treatment, education or marriage of children, construction or purchase of house, repayment of home loan, renovation of home or pre-retirement. But all are not eligible to take
loans. Their are certain conditions like minimum years of completion, age or proof you need to
produce. So it seems bit lengthy procedure.
9) Loan against Shares or Mutual Funds-Few lenders offer loan against your investment value
of shares or mutual funds. But you will not get more value from this. Reason is, both the
investments (if mutual fund is of equity oriented) then fluctuation in values will be high. Hence
to protect their loan amount usually lenders offer less loan.
10) Loan from unrecognized sector-This is one of the easiest but costliest way of fulfilling
your financial dream. Usually interest rate will be in the range of 20%-30% but you can get it
immediately. Such type of loans are useful who are running out of time and not have any source
also to fund their financial requirements. But looking at this option is costly affair. Hence it is
highly advisable to avoid such funding.
Is their any thumb rule like how much percentage of income one should have loans? Yes to have
control over your financial life, it is always advisable to have EMI outgo not more than 60%, this
includes all loans one have taken. Otherwise you may be in financial mess. But taking all types
of loans for which you are eligible is also a not wise decision especially in case of personal
loans. People tend to attractive for easy offers and low EMIs but forget about the interest and
processing fee costs involved on loan. Hence understand your priorities before going for loan.
http://www.basunivesh.com/2013/05/29/different-types-of-loans-in-india-when-to-use-them/
There are different types of loans available. Among these the two most important loans are
personal loans and education or student loans. The post below jots down the differences between
personal & education loans.
First of all, the personal loans are multi purpose loans which imply that you can use it for any of
your needs. But in case of education loans, you can use the advance only for education purposes.
You have to state the name of the college or university to get approval for the loan.
Then, another important difference is that in case of personal loans, the repayment has to be
made from the next month. But in case of student loans, you will start to repay after you get a
job. Besides, one of the most significant differences is that the education loans, being
underwritten by government always features a lower rate of interest in comparison to personal
loans.
http://www.microfinancecongress.com/difference-between-education-loan-and-personal-loan/
Personal Loans
Eligibility
Minimum and
Maximum Age
Maximum Annual
Income
` 1,20,000
` 1,50,000
Minimum years in
service/ business
1 year
3 years
Loan Amount
` 50,000 to
` 15,00,000
----
` 50,000 to
` 15,00,000
Loan Tenure
1 years to 7 years
1 years to 7 years
Interest Rates
12-24%.
12-24%.
Mode of Repayment
Home Loans
To buy a dream home is the dream of every person. Home Loan has helped in changing every Indian's
dream into reality. However, the every increasing property rates and escalating rates of interest
sometimes act as an obstacle. Therefore, before opting for a home loan it is advisable to check every
prospect of the product.
Home Loans
Eligibility
` 1,00,000
` 1,50,000
1 year
3 years
Loan Amount
` 2,00,000 to
` 2,00,00,000
----
` 2,00,000 to
` 2,00,00,000
Loan Tenure
5 years to 20 years
5 years to 20 years
Interest Rates
9-16%
9-16%
Tax Benefits on Home Loans: Any person who opts for home loan is entitled for tax benefits under
Income Tax Act, 1961 on principal and the interest amount in the form of deductions from the
chargeable earnings.
Bank Loans against Property
Property Loan or Loan against property is a kind of loan which is allowed by the bank on the condition of
keeping the customer's current assets as a security with them. These loans are very useful when other
resources of financing get exhausted.
It is significant to recognize that a loan against property is not similar to mortgage. While loan against
property is obtained from the bank by allocating customer's current assets as a security against the
credit, a mortgage is an instrument for purchasing an asset. On the basis of the current market
situations, the paid up cost of the asset and other aspects, the cost of the credit against asset can range
anywhere from 40% to 60% of the asset costs.
Loans against Property
Eligibility
` 1,20,000
` 1,50,000
1 year
3 years
Loan Amount
` 2,00,000 to
` 1,50,00,000
----
` 2,00,000 to
` 1,50,00,000
Loan Tenure
1 years to 15 years
1 years to 15 years
Tax Rebate
NIL
NIL
Business Loans
Before starting a business , the entrepreneur should be mentally and financially prepared to encounter
the fiscal setbacks during the process. To bail the companies out from the fiscal crunch, several banks in
India offers business Loans both for meeting urgent official growth and expenses. Other details of
Business Loans offered by Banks in India are:
Business Loans
Car Loans
Every individual want to own a car. Hence, the need for car loans emerges at some point or the other.
While selecting a car loan it is always wise to scrutinize the various options accessible in the market
besides analyzing its fiscal suitability.
Car Loans
Eligibility
` 60,000
` 1,00,000
Loan Amount
----
Loan Tenure
1 years to 7 years
1 years to 7 years
Education Loans
Education Loans offered by various banks in India provide much required assistance to fund your
child's education when all other resources of finance get exhausted. Education Loans are offered by
almost every Indian bank thus providing ample opportunity to students to undergo higher education
both in India and abroad.
Education Loans
Eligibility
For Students
Expenses covered
Upto ` 10,00,000
Upto ` 20,00,000
Repayment Period
5-7 years
http://business.mapsofindia.com/banks-in-india/loans.html