A personal loan can be obtained if there is a liquidity problem. Any number of reasons, including paying off an old debt, taking a vacation, providing a down payment for a home or automobile, funding a medical emergency, or buying expensive furniture or technology, can be used as justification for obtaining a personal loan. An applicant's past interactions with the lender and credit score are taken into account when granting personal loans.
Home loans are designed to help people get money to buy a house or apartment, build a house, renovate or repair an existing property, or buy a plot of land to build a house or apartments on. In this scenario, the lender will hold the property, and upon full repayment of the loan, ownership will be transferred to the legitimate owner.
A loan that is expressly designed for business needs is known as a business loan. It entails the formation of a debt, similar to all loans, which will be repaid with additional interest. Bank loans, mezzanine finance, asset-based financing, invoice financing, microloans, business cash advances, and cash flow loans are just a few of the several kinds of business loans available.
Individuals and companies pledge real estate, insurance policies, FD certificates, mutual funds, shares, bonds, and other assets in a manner similar to pledging gold in order to borrow money. The lender will make an offer for a loan with some margin available based on the value of the pledged assets. The borrower must make timely payments in order to obtain ownership of the pledged assets at the conclusion of the term. In the event that this is not done, the lender may liquidate the assets to recoup the unpaid debt.
Loans against Securities are available in the form of overdraft facility. It is a loan obtains by pledging against financial securities like Shares, Stocks, Mutual Funds, Fixed Maturity Plans, Units and Bonds. You pledge the securities you have invested in as collateral against loan amount. A loan against securities is an ideal way to make your investment work harder and smarter for you.
Car loan is a financial assistance taken to purchase a car with minimal initial payment from your own pocket. The borrowed money from the lender can be repaid in equal monthly installments over a period of time with an agreed rate of interest. Normally, car loans are secured with the vehicle itself that is being bought.
Gold loan (also called loan against gold) is a secured loan taken by the borrower from a lender by pledging their gold articles (within a range of 18-24 carats) as collateral. The loan amount provided is a certain percentage of the gold, typically upto 80%, based on the current market value and quality of gold. Gold loan is similar to personal loan in meeting your immediate financial requirements, be it an international education, marriage expenses, covering medical emergencies or any other personal use. • Quick Disbursal- Minimum documentation leads to faster processing of gold loan due to its secured nature. • Flexibility of Use- Since there is no monitoring of the end use, it gives you the flexibility to use the loan for any type of expense. • Secured Loan Type: You are not required to submit any other security/collateral to the lender other than the pledged gold ornaments. • Lower Interest Rate: Interest rates on gold loans are on the lower side when compared to personal loan, since gold serves as collateral. • Liquidate your idle asset: An idle asset, gold is seldom used for generating money. Hence gold loan is the perfect solution to raise capital and use the fund when you require money to meet your financial needs. It is also more secure in the confines of a bank’s or a financial institution’s locker than your home.
