Common mistake most people make is to opt for the longest loan tenure in order to maximize

loan amount eligibility and minimize EMI. Before you join the millions of bank loan customers
in India in committing this mistake, just understand what it costs. On a ₹ 40 lakhs loan at 6.75%
for 15 years, the EMI is ₹ 35,396/- and the total interest you pay to the bank over 15 years comes
to ₹ 23,71,348/-. If you opt for 20 year loan tenure instead of 15, for the same loan amount and at
same interest rate, the EMI is 14% lower at ₹ 30,415/- but over 20 years, you pay ₹ 32,99,494/-
as interest, which is ₹ 39% higher than on a 15 year loan.

So, unless you really like banks to make lots of money from you, answer the following
questions to strike the right balance:

 How much EMI you can comfortably pay every month – this should not exceed 60-65% of your
net post tax pay.
 Calculate your loan eligibility for various loan tenures based on this EMI and your age. Opt for
the shortest loan tenure that meets your loan requirement. In addition to your salary, also
inform the bank about your other fixed income such as rent and interest to increase eligibility. In
case the loan amount you need is more than the maximum loan eligibility, you may add upto 3
of your earning family member as co-applicants to increase the eligibility.
 Note that the loan amount cannot exceed 75 – 80% of the cost or market value of the home you
are buying. So, make arrangement for the balance amount (also called margin money).

Step 2. Check approval status of your property

For Builder Projects and Resale Properties, check the following:

 The property should be registered in the name of the seller and the entire chain from first
conveyance of the property upto the last sale should be available.
 For self constructed property, approved map plan should be available.
 Some banks will fund upto 150% of the registry amount subject to 75% of market value. Few
banks may restrict the maximum loan amount to 75% of agreement value and 75% of market
value, whichever is lower.
 Banks don’t fund properties in gram panchayat areas or those built without approved building
plan.

Step 3. Home loan Fixed Rate or floating rate – Choose your

option
At MyLoanCare, in the current market scenario, we recommend floating rate loans over fixed
rate ones. This is mainly because we expect rates to trend down over coming months. Secondly,
floating rate loans come with nil prepayment charges unlike fixed rate loans.

Fixed rate loans may be advisable in a situation where you feel that your monthly cash flows
(after paying off EMIs and other expenses) cannot take any additional burden/ unpredictable
increases on account of interest rate rises. Fixed Rate loans, however come with a higher rate of
interest than floating rate loans and typically carry a pre-payment penalty charge.
Another catch with fixed rate loans is "How fixed is the so-called fixed rate?" A fixed rate is
seldom fully fixed. Most banks offer fixed rate for the initial period and convert this into floating
rate thereafter. Fixed rate period may vary from 1 year to 10 years though the total loan tenure
may be upto 30 years. Always check what will be the applicable rate after the fixed rate period
ends. Many customers have often complained that they see a sharp increase in interest rate when
the loan converts from fixed rate to floating rate. This is particularly true for fixed rate loans
from LIC Housing Finance.

Step 4. Home Loan prepayment and foreclosure charges –

Check it
While home loans are sanctioned for a tenure of upto 30 years, rarely do people actually run the
loan for that long. Each one of us wants to pay off the loan at the earliest and own our home
fully. It is observed that the average period people take to pay off their home mortgage fully is
around 8 years. This happens because most people make partial or even full prepayment of the
loan when they have surplus money. After all, it may not be a bad idea to use your annual
incentive to pay off your home loan partially.

It is important to select a bank that allows you to prepay your loan without any charges or
hassles. As per RBI circulars, banks are not allowed to charge prepayment penalty or charges on
floating rate home loans. However, banks may charge penalty on prepayment of fixed rate loans.
Charges may vary from 1% to upto 3% of the loan amount. So, check this aspect carefully before
selecting a bank and home loan. Another option is a smart loan or an interest saver loan. Do you
normally keep a significant bank balance or do you run high bank balance at times? You may
like to consider Home Credit or Home Saver or Maxgain options which allow you to deposit
your surplus savings in a bank account and pay interest on home loan only on the net difference
between the two. So, for the period that your surplus cash stays in the bank, you pay less interest
on your home loan.

Step 5: Select best bank for Home Loan

Your choice of banks should be based not only on the rate of interest but also some other very
important factors, which we have described here:

 Turnaround time and customer service levels: Read the customer ratings and reviews of banks
by customers like you who have availed loans in the recent past. Their experience may help you
make a better choice and avoid common mistakes. Check which banks will offer you doorstep
service and for which ones would you need to visit the bank branch.
 Check the past base rate trend of the banks you are considering. This can tell you if the banks
changes rates too often. Check if the bank passes on the benefit of lower policy rates to its old
customers or not. Click here for current base rates of banks in India.
 Compare offers and choose the one that’s best and not necessarily the cheapest – By now you
have a good sense of your loan requirements and can compare loan offers from multiple banks.
Compare offers on interest rates, processing fees, customer ratings, servicing and all-in-cost.
FAQs

✅Is the security required for a home loan?

A home loan is a secured loan that requires the borrower to keep collateral with the lender.
However, the collateral in case of the home loan is the home itself for which the loan is
borrowed. In case a person fails to repay the home loan on time, the lender has the right to
acquire the property.

✅How can I clear my home loan fast?

You can clear your home loan fast by paying the repayment amount either partially or fully,
through home loan prepayment or foreclosure. Paying off the amount will not help you get rid of
your home loan fast, but would also lower the home loan burden, as the principal amount is
reduced. However, before going for the prepayment and foreclosure, it is better to know the
foreclosure or prepayment charges that the lender charges in advance.

✅Who can be a guarantor for a home loan in India?

A guarantor should be an individual above the age of 18 with a good financial history and a
stable source of income. Apart, he or she should be sure about the credibility of the loan
applicant.

✅What is the easiest bank to get a home loan from?

You can get a home loan easily nowadays, through the online loan portal of the bank. The online
home loan application process is easy, quick, reliable and convenient.

Related Topics

 Home Loan
 Apply Home Loan Online
 Compare Home Loan Interest Rates
 Calculate Home Loan EMI
 Check Home Loan Eligibility
 Repo Rate Linked Home Loan
 Home Loan Balance Transfer
 Pradhan Mantri Awas Yojna
 Joint Home Loan
 Home Loan Statement
 Home Loan Sanction Letter
 EMI Moratorium
 Home Loan Offers in Your City
 Tax Benefit on Home Loan
 Loan for Land Purchase
 Top Up Loan
 Home Loan Processing Fee
  Encumbrance Certificate
 Check PMAY Eligibility
 Compare Home Loan Details
 Home Loan Reviews
 All About RERA
 Compare MCLR Rate of All Banks
 Home Loan Documents
 Stamp Duty Charges
 Housing Scheme
 Home Loan Insurance
 Affordable Housing
 Home Loan Application
 Home Construction Loan
 PMAY Application Form
 PMAY Gramin
 PMAY Application Status Check
 Pradhan Mantri Awas Yojana List
 Indira Gandhi Awas Yojana
 Home Loan Disbursement Process
 Bhulekh Odissa Land Records
 Banglarbhumi Land Record
 MP Bhulekh Land Records
 Bhulekh Bihar Land Records
 Patta Chitta Tamil Nadu Land Records
 Dharani Telangana Land Records
 Jharbhumi Jharkhand Land Records
 Possession Certificate
 SBI Home Loan
 HDFC Home Loan
 Home Loan Subsidy Under PMAY
 Lowest Home Loan Rates
 DDA Housing scheme
 Circle Rates
 Home Loan Procedure
 Home Loan Down Payment
 HDFC Home Loan Customer Care
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 Bad Credit Home Loan
 Top Housing Finance Companies 2020
 Home Renovation Loan

Latest Blogs
Home Loan News - Dec 2020

 2020-12-24 : NBFC collection efficiencies at their highest this fiscal

CRISIL reported that the collection efficiencies of securitised loans including home loans, LAP,
gold loans of NBFCs have improved to their highest this fiscal year. The improved result was due
to uptick in financial exercise and recovery efforts by banks. The Rating agency further reported
that the average collection efficiencies for car loans, dwelling loans and even microfinance are
close to pre-Covid levels.
 2020-12-24 : Higher delinquencies in credit card, loans against property
Credit Information Bureau reported that the retail credit which includes home, personal, car,
two-wheeler gold and education loan has experienced an increase in serious delinquencies, with
loans against property and credit cards being the most affected segments. As of August-end, the
loans overdue for over 90 days in the credit card segment were 0.51% up from the year-ago
period at 2.32%, while the same for the loans against prop

Type of Loans Available in India

There are numerous types of loans available in India. However, most people choose a personal
loan over other types in spite of having a variety of assets, which they can mortgage to avail
loans at a lower interest rate. One of the reasons behind this scenario is the lack of knowledge
about different types of loans available in India.

By definition, a loan is a specified amount of money that you can borrow from the lender
(usually banks) with an assurance of returning it back within the agreed period. The lender on
different types of loans levies a specified rate of interest. The borrower repays the borrowed
amount along with the interest in installments as per the agreement between the two parties.

How to Apply for a Loan?

Contrasting to the general myth, applying for a loan is not a complicated process. You should be
particularly careful about the fact that you provide banks with all the genuine documents. In
India, different types of loans need a different set of documents.

Steps for Applying for Loan

1. Loan Application Form: You need to fill up the application form for the type of loan
you need from the bank. You need to make sure that all the information written on the
form is genuine and correct.
2. CIBIL Score Check: The bank then checks up your CIBIL to count the score of your
credit cards. CIBIL tracks and maintains the records about the money/loans you need to
repay apart from the current loan you are trying to apply. If you have a high credit score,
your loan application is easily approved.
3. Submitting the Necessary Documents: The borrower needs to produce a series of
documents to supplement their loan application form. Documents such as proof of
identity, income proof, and other certificates need to be submitted along with the
application form.
4. Loan Approval: Once you submit the application form along with all the necessary
documents, the bank verifies all the details you have provided. Once the verification is
complete and the results are satisfactory the bank approves your loan application.
Types of Loans in India
Different Types of Loans in India
Let’s look at some of the common types of loan available in India:

1. Personal Loan:

Personal loans are provided to meet the personal needs of the borrower. You can use the
money from this type of loan in any way you see fit. You can pay off your previous
debts, buy some expensive accessories for yourself, and plan a great trip with your
family. It’s up to you how to use the money. The interest rates for this type of loan are on
the higher side compared to the other types of loans.

2. Home Loan:

Everybody dreams of owning their own house. However, buying a house needs a lot of
money and it is not always possible to have that much money at once. Banks now offer
home loans that can assist you in purchasing a property. A home loan can be of different
types such as:

1. Loan for constructing a house

2. Loan for repairing and remodelling your existing home
3. Loan for purchasing a land
3. Education Loan:

Banks also offer education loans to the ones who need it. These loans offer a better
support in terms of study opportunities to students are financially weak. Students looking
to pursue higher education can avail education loan from any bank in India. Once they
secure a job, they need to repay the money from their payment.

4. Gold Loan:

Among all the types of loans available in India, the fastest and easiest one to get is the
gold loan. This type of loan was very popular back in the days when the rates of gold
were rising exponentially. Gold companies are facing losses due to falling rates of gold in
the recent times.

5. Vehicle Loan:

Vehicle loans help you fulfil your dream of owning a car or bike. Almost all banks
provide this type of loan. It a secured loan means if the borrower doesn’t pay the
instalments in time, the bank has the right to take back the vehicle.

6. Agricultural Loan:
 There are multiple loan schemes by banks to assist farmers and their needs. Such loans
have very low interest rates and help farmers to buy seeds, equipment for farming,
tractors, insecticides etc. to generate a better yield. The repayment of the loan can be
made after the yielding and selling of crops.

7. Overdraft:

Overdraft is a process of requesting loans from banks. It means that the customers can
withdraw more money than they have deposited in their accounts.

8. Loan against Insurance policies:

If you have an insurance policy, you can apply for a loan against it. Only those insurance
policies that are aged over 3 years are eligible for such loans. The insurer can themselves
offer a loan amount on your insurance policy. Approaching the bank for the same is
optional. You need to submit all the documents related to the insurance policy to the
bank.

9. Cash Credit:

Cash credit is a bank procedure of paying a customer in advance. This process permits
the customer to borrow a certain amount from the bank. The customer provides a few
securities to the bank in exchange for cash credit. The customer can renew this process
each year.

10.Loan against bank FDs:

If you have a fixed deposit in with a bank, you can apply for a loan against the same. If
the FD is around or more INR 100,000, you can apply for a loan of INR 80,000. The rate
of interest levied on such loan is comparatively higher than that paid by the bank on your
FD.

11.Loan against Mutual Funds or Shares:

Generally, people offer their mutual fund investment or shares as a collateral for their
loan application. The banks give out loans of an amount lesser than the total valuation of
the shares or mutual fund investment. The amount is lesser because the bank can then
charge rate of interest if the borrower is unable to repay the amount.

A loan is essentially money borrowed with a promise of return within a specific time
period/tenor. The lender decides a fixed rate of interest that you must pay on the money you
borrow, along with the principal amount borrowed. Let us take a look at the different types of
loans that are available in India.
Types of loans

There are various types of loans available in India, and they are classified based on two factors:
- Whether they require collateral
- The purpose they are used for

Based on whether they require collateral, loans are classified into secured loans and unsecured
loans. Let’s take a look at each type.

I. Secured loans These are loans that do require collateral, i.e., you have to provide an asset to
the lender as security for the money you are borrowing. That way, if you are unable to repay the
loan, the lender still has some means to get back their money. The rate of interest of secured
loans tends to be lower as compared to those for loans without collateral.

Types of secured loans

1. Home loan

Home loans are a secured mode of finance, that give you the funds to buy or build the home of
your choice. The following are the type of home loans available in India:
Land purchase loan: Purchase land for your new home
Home construction loan: Build a new home
Home loan balance transfer:Transfer the balance of your existing home loan at a lower interest
rate
Top up loan: Can be used to renovate an existing home or have the latest interiors for your new
home

Note that while buying a new property/home, the lender requires you make a down payment of at
least 10-20% of the property’s value. The rest is financed. The loan amount disbursed depends
on your income, its stability and current liabilities among others.

2. Loan against property (LAP)

Loan against property is one of the most common forms of a secured loan where you can pledge
any residential, commercial or industrial property for availing the funds required. The loan
amount disbursed is equivalent to a certain percentage of the property’s value and varies across
lenders.

While some lenders may offer an amount equivalent to 50-60% of the property’s value, others
may offer an amount close to 80%. A loan against property helps you unlock the dormant value
of your asset and can be used to satiate personal life goals such as higher education of children or
marriage. Businesses use a loan against property for business expansion, R&D and product
development among others.
3. Loans against insurance policies

Yes, you can also avail loans against your insurance policy. However, note that all insurance
policies don’t qualify for this. Only policies, such as endowment and money-back policies,
which have a maturity value can be used to avail loans.

Thus, you can’t avail a loan against a term insurance plan as it doesn’t have any maturity
benefits. Also, loans can’t be availed against unit-linked plans as the returns aren’t fixed and
depends on the performance of the market. It’s essential to note that you can opt for a loan
against endowment and money back policies only after they’ve acquired a surrender value. These
policies acquire a surrender value only after paying regular premiums continuously for 3 years.

4. Gold loans

For the longest time, gold has been one of the most favoured asset classes. The organized Indian
gold loan industry is expected to touch Rs.3,101 billion by 2019-20, according to a KPMG
report, thanks to flexible interest rates offered by financial institutions.

A gold loan requires you to pledge gold jewellery or coins as collateral. The loan amount
sanctioned is a certain percentage of the gold’s value pledged. Gold loans are generally used for
short-term needs and have a short repayment tenor compared to home loans and loan against
property.

5. Loans against mutual funds and shares

An ideal vehicle for long-term wealth creation, mutual funds can also be pledged as collateral for
a loan. You can pledge equity or hybrid funds to the financial institution for availing a loan. For
doing so, you need to write to your financier and execute a loan agreement.

Your financier then will write to the mutual fund registrar and a lien on the certain number of
units to be pledged is marked. Typically, you can get 60-70% of the value of units pledged as a
loan.

Similarly, with shares, financial institutions create a lien against shares against which the loan is
taken and the loan value is equivalent to a percentage of the value of the shares.

6. Loans against fixed deposits

The humble fixed deposit not only offers assured returns but can also come handy when you
need a loan. The amount of loan can vary between 70-90% of the FD’s value and varies across
lenders. However, it’s essential to note that the loan tenor can’t be more than the FD’s tenor.

II. Unsecured loans

These are loans that do not require collateral. The lender lends you the money based on past
associations, and your credit score and history. Thus, you have to have a good credit history to
avail these loans. Unsecured loans usually come at a higher rate of interest due to the lack of
collateral.

Types of unsecured loan

1. Personal loan

Offering an instant flush of liquidity, a personal loan is one of the most popular types of
unsecured loans. However, since a personal loan is an unsecured mode of finance, the interest
rates are higher compared to secured loans. A good credit score along with high and stable
income ensures you can avail this loan at a competitive rate of interest. Personal loans can be
used for the following purposes-
- Manage all expenses of a family wedding
- Pay for a vacation or an international trip
- Finance your home renovation project
- Fund the cost of your child’s higher education
- Consolidate all your debts into a single loan
- Meet unexpected/ unplanned/ urgent expenses

2. Short-term business loans

Another type of unsecured loans, a short-term business loan can be used to meet their expansion
and daily expenses by various entities and organizations.
- Working capital loans
- Machinery loans and equipment finance
- Small business loans for MSMEs
- Loans for women entrepreneurs
- Loans for traders
- Loans for manufacturers
- Loans for service enterprises

Flexi Loans

A facility whereby you can avail funds from your approved limit and as when required and pay
interest only on the amount used. You can withdraw on your loan limit, any number of times and
prepay when you have extra cash, at no extra cost. Such a unique facility gives you the freedom
to be in full control of your finances unlike rigid term loans and offers you savings on your EMIs
by up to 45%. Here, you also have the option to pay only interest as EMIs, with the principal
payable at the end of the tenor.

Based on what they are used for, loans are classified mainly into:

1. Education loans

Aspiration for higher education from reputed institutions have bolstered the demand for
education loans in the country. This loan covers the basic fees of the course along with allied
expenses such as the accommodation, exam fee, etc. In this loan, the student is the main
borrower while parents, siblings and spouse are co-applicants.

An education loan can be taken for a full-time, part-time or vocational course along with
graduation and post-graduation course in the fields of management, engineering and medicine,
among others. The loan must repaid by the student once the course is complete.

A unique feature of an education loan is the moratorium period, wherein the student has the
option of not paying the EMIs until after 12 months of completing the course or 6 months after
he/she starts working, whichever is earlier.

2. Vehicle loans

A vehicle loan is extended in the form of a two or four-

wheeler loan which helps you to buy your dream vehicle.
Vehicle loans are offered either on purchase of a new vehicle
or a used one. Your credit score, ratio of debt to income,
loan tenor, etc., play a crucial role in determining the loan
amount.

With Bajaj Finserv you can get pre-approved offers on all

the above-mentioned loans and there are no queues, forms
or details needed. Here, your loan offer is already approved,
so you can avail instant financing. All you need to do is
simply provide some basic details and get your pre-
approvedPersonal Loans:
Most banks offer personal loans to their customers and the money can be used for any expense
like paying a bill or purchasing a new television. Generally, these loans are unsecured loans. The
lender or the bank needs certain documents like proof of assets, proof on income, etc. before
approving the personal loan amount. The borrower must have enough assets or income to repay
the loan. In case of personal loans, the application is 1 or 2 pages in length. The borrower gets to
know about the denial or approval of the loan within a couple of days.

You must remember that the rate of interest associated with these loans can be on the higher side.
The tenure of these loans is not that long. So, if you borrow a big amount, it can be difficult for
you to repay without planning your finances properly.

Personal loans can prove to be of great help when you wish to take a small amount loan and
repay it as soon as possible.
Credit Card Loans:
When you are using a credit card, you must understand that you will have to repay for all the
purchases you make at the end of the billing cycle. Credit cards are accepted almost everywhere,
even when you are travelling abroad. As it is one of the most convenient ways to pay for the
things you buy, it has become a popular loan type.

In order to apply and avail a credit card, all you need to do is fill out a simple application form
provided by the card issuer. You can also choose to apply for a credit card online. These plastic
cards come with great rewards and benefits. It’s the loan where you need to repay on time but
you are also handsomely rewarded for using it.

Obviously, there are pitfalls associated with this type of loan. You must understand that there is a
high amount of interest on the amounts you borrow on your credit card. If you do not pay your
credit card bills on time, the interests will keep piling and might be difficult for you to manage
your finances with the rising outstanding balance. But if you use a credit card wisely and clear all
your debts on time, it can definitely prove to your best friend in your pocket.

Home Loans:
When you wish to purchase a house, applying for a home loan can help you to a great extent. It
provides you the financial support and helps you buy the house for yourself and your loved ones.
These loan generally come with longer tenures (20 years to 30 years). The rates offered by some
of the top banks in India with their home loans start at 8.30%. Your credit score is checked
before the loan request is approved by the lender. If you have a good credit score, there is a fair
chance that you will be able to enjoy lower rates of interest with your home loan.

Home loans are primarily taken for buying new homes. However, these loan can also be used for
home renovations, home extensions, purchasing land property, under-construction houses, etc.

Car Loans:
Buying a car can definitely instil a great sense of joy and happiness in you. A car will remain as
your asset and it is going to be one of the biggest investments that you make. A car loan helps
you to pave the path between your dream of owning a car and actually buying your car. Since
credit reports are crucial for judging your eligibility towards any loan, it is good to have a high
credit score when you apply for a car loan. The loan application will get approved easily and you
might get a lower rate of interest associated with the loan.

Car loans are secured loans. If you fail to pay your instalments, the lender will take back your car
and recover the outstanding debt.

Two-Wheeler Loans:
A two-wheeler is pretty essential in today’s world. May it be going for a long ride or a busy road
in a city – bikes and scooters help you to commute conveniently. A two-wheeler loan is easy to
apply for. This amount you borrow under this loan type helps you to purchase a two-wheeler.
But if you do not pay the instalments on time and clear your debt, the insurer will take your two-
wheeler to recover the loan amount.

Small Business Loans:

Small Business Loans are loans that are provided to small scale and medium scale businesses to
meet various business requirements. These loans can be used for a variety of purposes that help
in growing the business. Some of these could include purchase of equipment, buying inventory,
paying the salaries of employees, marketing expenses, paying off business debts, meeting
administrative expenses, or even to open a new branch or take up a franchise.  

The eligibility criteria for small business loans varies from lender to lender, but the common
ones are the age of the business owner, the number of years the business has been operational,
income tax returns, and statement of the previous year’s turnover that has been audited by a
Chartered Accountant (CA). 

Payday Loans:
Payday loans are also called salary loans. These are unsecured short-term loans that require the
customer to be employed with a steady income. They usually have high interest rates. This is
based on the applicant’s credit profile, age, and income. Documents required would be salary
statements and other proof of income.  

Cash Advances:
These loans are offered by credit card issuers and allow credit card users to withdraw cash from
an ATM machine using the credit card. The amount of cash that can be withdrawn from a credit
card in this way will depend on the credit limit available. The cash has to be paid back with
interest, which is usually calculated from the day the cash has been withdrawn. There are also
other fees associated with a cash advance, such as cash advance fees and ATM or bank fees. 

Home Renovation Loan:
Home innovation loans are offered by most lenders. These can be availed to meet the expenses
related to renovation, repairs, or improvement of an existing residential property. Depending on
the lender, there is a lot of flexibility with what you can do with a home renovation loan. You
can use it to buy products or pay for services. For example, you can use it to pay for the services
of a contractor, architect, or interior decorator. You can also use it to buy furniture, furnishings,
or household appliances such as a refrigerator, washing machine, air conditioner, etc. It can be
used for painting, carpentry, or masonry work as well. 
Agriculture Loan:
Agriculture loans are loans that are provided to farmers to meet the expenses of their day-to-day
or general agricultural requirements. These loans can be short term or long term. They can be
used for raising working capital for crop cultivation or to buy agricultural equipment. 

Gold Loan:
A gold loan can be used to raise cash to meet emergency or planned financial requirements, such
as business expansion, education, medical emergencies, agricultural expenses, etc. The loan
against gold is a secured loan where gold is placed as security or collateral in return for a loan
amount that corresponds to the per gram market value of gold on the day that the gold has been
pledged. Any other metals, gems, or stones that are in the jewelry will not be calculated when
determining the value of the gold loan. 

Loan Against Credit Card:

Loan against credit card is like a personal loan that is taken against your credit card. These are
usually pre-approved loans that do not require any additional documentation. Depending on the
lender, this can be converted into a personal loan that is interest free within a certain period of
time. After that, it will attract a certain percentage of interest. There is a processing fee
associated with converting the credit limit that is pre-assigned into a loan.

Education Loan:
An education loan is availed specifically to finance educational requirements towards school or
college. Depending on the lender, it will cover the basic fees of the course, the exam fees,
accommodation fees, and other miscellaneous charges. The student is the borrower with any
other close relative being the co-applicant, such as a parent, grandparent, spouse, or sibling. It
can be availed for courses in India or abroad. It can be taken for a wide variety
of recognised courses which are either part time or full time. They cover vocational courses as
well as undergraduate and postgraduate courses. 

Consumer Durable Loan:
Consumer durable loans are loans that are availed to finance the purchase of consumer durables
such as a electronic gadgets and household appliances. Depending on the lender, they can be
used to buy anything from mobile phones to television sets. Loan amounts range from Rs.5,000
to Rs.5 lakh. There is no security deposit required usually. Some lenders offer 0% interest on
consumer durable loans with instant approvals and minimal documentation required as well.

RELEVANT PAGES FOR YOU

  Loan Against Agricultural Land
 Guide to Buy Flats
 Home Loan Procedure
 Top Housing Finance Companies

 Types Of Agricultural Loans In India

 Home Loan Processing Fee
 Home Loan Provisional Certificate
 Documents Required For Home Loan

 Documents for Buying Resale Flat

 Secured Vs Unsecured Loan
 Home Loan Approval Time
 Guied To Buy New House

Loan Against the Insurance Schemes:

If your insurance scheme is eligible for a loan, you can avail the loan amount from your insurer.
You may also use the investment for insurance as collateral. Generally, loans cannot be availed
right from the commencement of the insurance policy. After 3 years into the scheme, you can
apply for a loan against insurance.

Loan Against Fixed Deposits:

This is a type of loan where your fixed deposit is the collateral. For example, if you have a fixed
deposit of Rs.10 lakh in the bank, you can avail a loan of up to Rs.8 lakh. However, the rate of
interest associated with this kind of a loan is usually higher than the fixed deposit rate.

Loan Against Mutual Funds and Shares:

Certain lenders provide loan against your mutual fund value and share value. However, you will
not be able to borrow huge amounts under this type of loans.

Home Loans by Banks

Home Loans by NBFC
Home Loan Articles

Resources

Home Loan Resources

 Home Loan Interest Rate

  Repo Rates
 MCLR Rates
 Home Loan Processing Fee
 Home Loan Documents Required
 Compare Plot Loan
 Home Loan Tax Benefits
 Home Renovation Loan

Schemes and Acts

 Pradhan Mantri Awas Yojana

 PMAY Gramin
 PMAY Urban
 RERA Act
 Stamp Duty Charges
 Encumbrance Certificate
 DDA Housing Scheme
 Land Records

Calculator

 Home Loan EMI Calculator

 Home Loan Eligibility Calculator
 Home Loan Balance Transfer Calculator
 Home Loan Prepayment Calculator
 Home Loan Repayment Calculator
 Land Conversion Calculator
 Home Loan Affordability Calculator
 PMAY Subsidy Calculator

offer.

Features

 Repayment period of upto 15 years after Course Period + 12 months of repayment

holiday*
 Processing Charges
o Loans upto Rs. 20 lacs : NIL
o Loans above Rs. 20 lacs: Rs. 10,000 (plus taxes)
 Security
o Upto Rs. 7.5 Lacs:Only Parent/ Guardian as co-borrower. No Collateral Security
or third party guarantee
 o Above Rs. 7.5 Lacs:Parent/ Guardian as co-borrower and tangible collateral
security
 Margin
o Up to Rs 4 Lacs - Nil
o Above Rs 4 Lacs - 5% for studies in India, 15% for studies in abroad
 Repayment will commence one year after completion of course.
 Loan to be repaid in 15 years after the commencement of repayment
 In case second loan is availed for higher studies later, to repay the combined loan amount
in 15 years after completion of second course
 EMI Generation
o The accrued interest during the moratorium period and course period is added to
the principle and repayment is fixed in Equated Monthly Installments (EMI).
o If full interest is serviced before the commencement of repayment; EMI is fixed
based on principle amount only.