These are the loans that an individual can take to fulfill the personal requirements. Personal loans are classified into five major categories. However, the loan interest rates may vary from bank to bank, but the purpose for the loan remains the same. Moreover, apart from the point of mitigating personal needs, banks also give loans to start business.
Consumer Durable Loans
Such loans are provided so as to enable a consumer to buy products like washing machines, music systems, televisions and so on. It is one of the unique loans that banks gives to its account holders so as to attract them and retain them. Under this category of loan, one can avail only 10k to 1 Lac, but there are other banks also that disburse in various other ranges like from 5 k to 2lacs.
This is a kind of personal loan people generally need to mitigate their family expenses during festivals. Most of the banks provide such loans with reasonable interest rates. In this category, one can avail from 5k to 50 k. But the loan amount time period is only 12 months. Repayment is done via EMIs. The rates of interest vary from bank to bank.
There are numerous financial institutions in the country that aim at taking care of the senior citizens of our country mostly in rural and urban sector. Retired citizens can only take this loan. Such a loan is called pension loans. In such cases, the banks can disburse up to 7-8 times of the last pension amount they received.
These days, such loans are quite popular among the urban and rural folks. These loans are figured out by the bank considering certain eligibility parameters like repayment capacity, security pledged by the applicant and the age. The interest rates for this loan depend on the current market rates.