Types of loans Personal loan Home loan

1. SHRI VISHWAKARMA SKILL
UNIVERSITY, DUDHOLA
PREETI
M.VOC (B&F)
109
PPB
TYPES OF LOANS

2. ▰ A loan can be money, property or material goods
received from bank, friends, or any other financial
institution.
▰ This amount is repaid along with interest in specific
time period.
▰ It can be specific one-time amount or open-ended line
of credit with certain limit.
What is Loan ?
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3. Credit card
Personal
Education…….
e loans
Categories of Loans
Loan
Against
Property
Categories of loans
Home loan Car loan Loans/Purpos
Peer-to-Peer
Unsecured
Secured
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4. Unsecured Loans
• ▰ Unsecured loans are not
protected by any
• collateral. In case of
• default, lender won’t be able to
seize any asset of borrower.
• ▰ It tends to have higher
• interest rates because of higher
risk
Secured loans
▰ Secured loans are the ones
which is backed by a collateral.
This
collateral can be kept by lender
in case one is not able to repay
the loan in pre-determined time.
▰ It tends to have lower
interest rates.
• Secured v/s Unsecured
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5. ▰ Personal Loans ▰ Education loan ▰ Cash loan
▰ Business loans ▰ Payday loans ▰ Medical loan
▰ Car loan ▰ Two wheeler loan ▰ Loan against Property
▰ Home Loan ▰ Travel loan
▰ Marriage Loan ▰ Consumer durable loan
Different types of loans
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6. # Types of car loans
- For a new car
- For a used car
- Against an existing car
* Loan amount can be 2.5-3 times
annual salary for salaried person
and 6 times annual income for self
employed
* Documents required: Identity proof,
resident proof & income proof
Car Loans
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7. * Lender gives home loan against a property and in case
of default, the bank or lending company has legal rights
to sale the property and recover the outstanding loan
amount.
# Types of home loans
- Home purchase
- Home renovation
- Land Purchase
- Home construction & few more
* It falls under category of secured loans and tenure is
fixed ranging from 5-30 years.
Home loan

8. Place your screenshot here
* It is unsecured loan used for many purposes
like wedding, business, home renovation,
medical emergency, debt consolidation, etc.
* Its benefits include: flexibility of use, easy
availability, no collaterals, & minimum
documentation.
* Age, number of years in current job and in
current residence, income, etc. are some of
the factors that are considered before giving
loan.
Personal Loans
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9. * It can be availed for fulfilling the urgent needs of
growing business.
It can be used for extending the business, improving
production, buying new machinery, etc.
# Types of business loans
- Working capital loan
- Business loans for women
- SME & MSME loans
* It requires information about financial statements,
accounts receivable, accounts payable, insurance
details, etc.
Business loans
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10. * It is kind of a purpose loan which falls under
unsecured loan category.
* Weddings in India is a great affair as it comes
with lot of planning and expenses. Marriage loan
helps you organize a wedding smoothly.
* It has higher rates starting from 11% to 24-25%.
Marriage loans
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11. * Education loan is very important aid for those
who wants to study further but do not have
enough funds.
* Some of the benefits of education loans are tax
benefits, deferred repayment, lower interest rates,
builds good credit history, etc.
* Factors considered forgiving this loan is
university where education is sought, eligibility
of co-borrower, evaluation of collateral, etc.
* It can be availed for higher education in India,
loan for study in abroad, executive MBA, etc.
Education loan
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12. * Loan against property is nothing but a loan which you
avail by keeping your commercial/residential property
as a collateral. Another name for Loan against property
is a secured loan.
* The security in this kind of loan is the property owned
by the person applying for the loan.
* Some of the advantages includes lower interest rates,
higher value loans and unlocks the true potential of
asset.
* Things checked before giving this loan are property
value and type, income, creditworthiness,
etc.
Loan against property

13. * A payday loan is a type of short-term borrowing
where a lender will extend high interest credit
based on a borrower’s income and credit profile.
* A payday loan’s principal is typically a portion of
a borrower’s next paycheck.
* Payday loans charge borrowers high levels of
interest.
* These loans maybe considered predatory loans
as they have a reputation for extremely high
interest and hidden provisions that charge
borrowers added fees.
Payday loans
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14. * A consumer durable loan is a credit/finance option for
the purchase of household appliances, electronic goods
etc.
* The loan covers a whole range of products ranging
from household necessities like a washing machine to
luxury gadgets like a high-end smartphone.
* The amount and tenure differs according to each
lender and the product that you wish to purchase.
* The durable loan amount could range from a few
thousands to a few lakhs, while the tenure could
range from 8 months to 3 years.
Consumer Durable Loan
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15. * Everyone has dream holiday destination and travel
loan help you turn those dreams into reality by funding
them.
* Eligibility criteria :
- Minimum 21 years of age
- 6 months in current job
- Good credit score (atleast 600-700)
- Income of at least 20,000/month
* These are indicative criteria which can change from
lender to lender.
* Pre-approved loans can be availed if one is already a
customer of concerned bank..
Travel loan

16. * This loan amount is received by borrower in cash.
* These loans are of small amounts whose tenure is not
more than a year
* It can be availed by those individuals who do not have
cash in hand but are capable of repaying it in near
future.
Cash loan
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17. * Medical loan can come handy when there is
medical emergency and insurance cannot cover the
expenses.
* Healthcare is becoming very expensive nowadays
so medical loans are savior in bad times.
It can be used to pay medical prescription bills,
surgeries, hospital bills, other treatments, etc.
* Benefits of Medical Loan:
- Minimum documents required
- Instant verification.
- Fast approval and disbursalin 24 hours
- Repayment terms as per borrower.
Medical loan
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18. * In todays fast moving world, two-wheelers are
common man’s rescue shield because buying a car is
not affordable by everyone.
* Two wheeler loan offers greater leverage for those
with lower annual income. Someone with 50,000
annual income can also avail this loan.
* It also has flexible tenure of up to 4 years. This
reduces the EMI amount and thus is doesn’t affect
borrowers monthly budget.
* Some lenders don’t take any extra charges thus
helping buyer to clear off their debts faster.
Two-wheeler Loan
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