Personal loans in India

08-April-2015 written by : FSI-Team

Money plays a very important role in the lives of people. With development in different fields, the lifestyles of urban Indians are rapidly changing. The middle-class people are now working in multinational companies and getting successful. The dreams that they dreamt of as a young man or woman, are now to be fulfilled. The desires to fulfill the personal needs are increasing each day among the youth of the country. The younger generations are working hard and getting a hefty amount of money as salary and with the increase in salary and earnings, their expenditure increases as well.

It should be, mentioned in this regard that what was regarded a luxury in the 90s, has transformed into a necessity in the 21th century. Increase in the spending power and vast requirements of individuals’ results in additional requirement of funds either to meet some basic requirements or to fulfill dreams like travelling overseas or others. Some needs can be situation base like emergency medical requirement, weddings, education fees etc. These problems are faced by many people and each individual’s needs may be different. Thus they need money to achieve the desired objective, but limited money becomes the biggest barrier to not only the dreams but also the necessities of the common man.

The saviors in these situations are the hundreds of banks, financial organizations and private lender of India that grant personal loans. These loans are simply those unsecured retail loans which are provided for personal expenses of an individual or family. There are 5 broad categories of loans for personal purposes. The interest rate varies from bank to bank as well as the criteria for getting the loan

The types of personal loans:

Consumer durable loans:

This type of personal loan is granted for the purchasing of consumer durable products like music player, television, washing machine and many others. This is one of the exclusive loans that the Indian banks provide unlike the banks of other countries. This loan allows the common people to have the comfort without spending a hefty amount of money at once. This type of personal ranges from Rs. 10,000 to 1, 00,000 but there are some banks which extend the upper limit.

Festival loans:

This type of personal loan is aimed to help the people during the festival times. Most of the banks grant loans in a much discounted-rate during the festive season. Moreover, for a small amount of loan, the festive loan is the best bet as it can be repaid by EMIs.

Marriage loans:

This is a comparatively new but immensely popular section of personal loans in both rural and urban India.

Pension loans:

There are many banks in India that have introduced the scheme of personal loans for aged people. They aim to take care of the people who have retired from their works.

Personal Computer loans:

Computers have become one of the most needed electronic gadgets these days. Banks offer personal computer loans so that everybody can avail the comfort of using a computer.

Personal loan has become an one of essential part in the lives of people of India for quick finance and the banks are doing their best to help the people.



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