The loan is a type of credit in which the money is lent to the borrower in exchange for future repayment of the principal amount. The lender also adds the interest or finance charges to the principal amount which borrower has to play along with the principal amount. This one-time money helps the borrower to fulfill his dreams. Banks are the institutions that provide loans on behalf of the government. There are various types of loans – some are for the short term while some for the long term. The borrower can choose according to him.

Different types of the loan include –

  1. Personal loans – these are the collateral-free loans given by the banks without any security. The people generally apply for these loans for urgent payments like bills, wedding, home renovation, and to buy any electrical item. The banks consider the occupation of the borrower and proof of assets before approving a loan of their customers. You can also take personal loans from private finance companies. This may include high-interest rates but they give you money instantly. These private finance companies are present across the nation. For example, if you are living in the Jaipur, just search online the personal loan from private finance in Jaipur, you will get a list of many such institutions.
  2. Home loans – to build a personal house is the dream of many people. When one wishes to purchase a new house the home loans act as a boon for them. It provides instant support and helps the person to buy a beautiful house for him and his loved ones. These are generally long tenure loans. The interest rates of some banks start at 8.30% and it vary from different financial instituition. The interest rates also vary with the credit scores. If one has a good score then it has a fair chance he will be able to get loans at low-interest rates. Most people take home loans to buy a new house but sometimes they use them to renovate their homes and to purchase the land property.
  3. Small business loans – these are given to small scale companies and businesses to meet the requirements of the business. These loans are used by the business firms for a variety of purpose that helps their business to grow and achieve new heights. These may include the purchase of the raw materials and types of equipment, salaries of the employees, business debts, and administrative expenses. The eligibility criterion varies from the business to business depending on the time of the business, income tax returns, and statement of turnovers.

Among all, the most applied loans are personal loans. From the banks to the private financial institutions all easily approve these loans. As they are collateral-free loans people feel safe with this and mostly apply for it. If you want to apply for this loan just search the personal loan provider and the list of institutions will appear. For example, if you live in Jaipur just search the personal loan provider in Jaipur and you will get the results. Before applying read all terms carefully.