10 Types Of Personal Loans Financial Providers Offer

Personal loan act as your best ally in emergencies, for making expensive purchases, getting married, or for consolidating debts. Few reasons why personal loans are popular are easy application, instant approvals, and minimum documentation. But do you know a personal loan finance company provides different loans for different purposes? They take care of specific financial requirements right from travelling to home renovation to starting a business.

The personal loan company offers the following kinds of loans –

• Bridge loan: Such loans are provided to meet short-term financial goals. Some take up this loan to pay off bigger loans to avoid stressful situations later. The tenure for these loans is around a year.

 

• Festival loan: If you find the festive expenses going beyond the decided budget, you can avail of the festival loan. Considering it is a small amount, they are readily available to the consumers. The borrowing limit is low and comes with lower interest rates as well as processing charges.

 

• Signature loans: Do you hold a decent credit score and history? If the answer is yes, then signature loans are the perfect escape from all the financial problems. The loan only needs your signature, which acts as collateral and assures you will repay them without any delay.

 

• Wedding loan: Couples and families who find it challenging to meet the ends during the wedding, can opt for a wedding loan. It is not only useful for wedding events but also for booking hotels, jewellery shopping, catering, travel bookings, etc. The interest rates for the loan are high during the peak wedding season compared to the offseason.

 

• Top-up loan: If you have the loan in place, the personal loan providers offer top-up credit due to other financial emergencies. The tenure for the top-up loan is six to 12 months. The other features of it are low-interest rates, features tax benefits, and is extremely useful during emergencies.

 

• Holiday loan: If you do not want to drain your savings on travel bills, then apply for a holiday loan as soon as you decide your travel plans. Credit cards do the task. However, you have funds readily available under holiday loan and at lower rates. The amount, nevertheless, depends on your creditworthiness and the travel destination.

 

• Agricultural loan: Such loans are offered to farmers, helping them earn their bread and butter by doing different agricultural activities such as animal husbandry, crop cultivation, and so forth. The interest rates are low and aim to improve the productivity of farmers in the country.

 

• Home renovation loan: As time changes, your home and lifestyle need changes as well. Such finance is useful for home repair and renovation. Although there is a home loan in place for the same, a personal loan finance company provides home renovation loan as well.

 

• Overdraft loan: This type of loan makes sure you never run out of finances. It ensures there is an adequate balance in the account in case of emergencies. The interest rates, however, are high and you need to pay the interest on the money you spend.

 

• Consumer durable loan: Personal loan providers offer this loan for purchasing home appliances and gadgets. Almost every company covers 100 per cent of finances for the purchase.

Plan and decide carefully now that you are aware of different kinds of personal loans.