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  • Different Types of Bank Loans in India

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  • Loans can be utilised for various things in today’s world. It can be used for funding a start-up to buying appliances for your newly purchased house. Let us talk about the different types of loans available in the market and their specific characteristics that make these loans useful to the customers.

    Personal Loans:

    Most banks offer personal loans to their customers and the money can be used for any expense like paying a bill or purchasing a new television. Generally, these loans are unsecured loans. The lender or the bank needs certain documents like proof of assets, proof on income, etc. before approving the personal loan amount. The borrower must have enough assets or income to repay the loan. In case of personal loans, the application is 1 or 2 pages in length. The borrower gets to know about the denial or approval of the loan within a couple of days.

    You must remember that the rate of interest associated with these loans can be on the higher side. The tenure of these loans is not that long. So, if you borrow a big amount, it can be difficult for you to repay without planning your finances properly.

    Personal loans can prove to be of great help when you wish to take a small amount loan and repay it as soon as possible.

    Credit Card Loans:

    When you are using a credit card, you must understand that you will have to repay for all the purchases you make at the end of the billing cycle. Credit cards are accepted almost everywhere, even when you are travelling abroad. As it is one of the most convenient ways to pay for the things you buy, it has become a popular loan type.

    In order to apply and avail a credit card, all you need to do is fill out a simple application form provided by the card issuer. You can also choose to apply for a credit card online. These plastic cards come with great rewards and benefits. It’s the loan where you need to repay on time but you are also handsomely rewarded for using it.

    Obviously, there are pitfalls associated with this type of loan. You must understand that there is a high amount of interest on the amounts you borrow on your credit card. If you do not pay your credit card bills on time, the interests will keep piling and might be difficult for you to manage your finances with the rising outstanding balance. But if you use a credit card wisely and clear all your debts on time, it can definitely prove to your best friend in your pocket.

    Home Loans:

    When you wish to purchase a house, applying for a home loan can help you to a great extent. It provides you the financial support and helps you buy the house for yourself and your loved ones. These loan generally come with longer tenures (20 years to 30 years). The rates offered by some of the top banks in India with their home loans start at 8.30%. Your credit score is checked before the loan request is approved by the lender. If you have a good credit score, there is a fair chance that you will be able to enjoy lower rates of interest with your home loan.

    Home loans are primarily taken for buying new homes. However, these loan can also be used for home renovations, home extensions, purchasing land property, under-construction houses, etc.

    Car Loans:

    Buying a car can definitely instil a great sense of joy and happiness in you. A car will remain as your asset and it is going to be one of the biggest investments that you make. A car loan helps you to pave the path between your dream of owning a car and actually buying your car. Since credit reports are crucial for judging your eligibility towards any loan, it is good to have a high credit score when you apply for a car loan. The loan application will get approved easily and you might get a lower rate of interest associated with the loan.

    Car loans are secured loans. If you fail to pay your instalments, the lender will take back your car and recover the outstanding debt.

    Two-Wheeler Loans:

    A two-wheeler is pretty essential in today’s world. May it be going for a long ride or a busy road in a city – bikes and scooters help you to commute conveniently. A two-wheeler loan is easy to apply for. This amount you borrow under this loan type helps you to purchase a two-wheeler. But if you do not pay the instalments on time and clear your debt, the insurer will take your two-wheeler to recover the loan amount.

    Education Loans:

    If you wish to get higher education in a reputed university in a different country, education loans can help you a lot. These loans are opted by students who wish to study further but need financial support for pursuing the courses. An education loan covers expenses like college/university fees, library charges, travel costs related to their course, etc.

    In order to be eligible for an education loan, you must submit all the required documents including invitation letter from the university, educational qualification certificates, etc.

    Loan Against the Insurance Schemes:

    If your insurance scheme is eligible for a loan, you can avail the loan amount from your insurer. You may also use the investment for insurance as collateral. Generally, loans cannot be availed right from the commencement of the insurance policy. After 3 years into the scheme, you can apply for a loan against insurance.

    Loan Against Fixed Deposits:

    This is a type of loan where your fixed deposit is the collateral. For example, if you have a fixed deposit of Rs.10 lakh in the bank, you can avail a loan of up to Rs.8 lakh. However, the rate of interest associated with this kind of a loan is usually higher than the fixed deposit rate.

    Loan Against Mutual Funds and Shares:

    Certain lenders provide loan against your mutual fund value and share value. However, you will not be able to borrow huge amounts under this type of loans.

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    Different Types of Bank Loans in India Reviews

    • HDFC Limited Home Loan
      "HDFC Home Loan - Kochi Branch- Worst Experience"
      0.5 0.5/5 "Unacceptable"
      HDFC provides the worst customer care ever. I had tried applying for a home loan from them and it is been more than 4 months and still the process has not been completed. Called them up multiple times from UK but very bad response. They showed much eager to obtain 12,000Rs from me for processing fee but no amount of effort was put forth from them. The manager nor the executive mentioned about a Power of attorney/ Notary service, only after me inquiring with my friends who have taken similar loans, I came to know about these mandatory documents for NRI. Again Mr.Abhilash and Mr.AkhilRaj acted as if it was my issue and they were not bothered. I sent all the documents to them via mail from UK 3 weeks back and till date they didn't respond whether they have received it or not. I called them everyday from UK waiting my time, energy and money. The anxiety they showed towards 12,000rs processing fee got over once I sent them the cash. My registration is not completed. For nearly 5 months, I
      Was this review helpful? 0
      , kochi
      Reviewed on Jan 20, 2020
    • HDFC Limited
      HDFC Limited Home Loan
      "Satisfactory"
      0.5 4.0/5 "Great!"
      I have taken home loan through HDFC LTD directly .I have taken this loan before 15 years .I am not sure about rate of interest since availed long back ,I have got the loan on time and without any drawbacks closed this loan successfully.The loan process was clearly discussed by the agent am fully satisfied with their service
      Was this review helpful? 0
      , chennai
      Reviewed on Jan 20, 2020
    • DHFL Home Loan
      "Need to improve services"
      0.5 1.5/5 "Bad"
      I have taken a home loan from DHFL to purchase the flat. I have opted for 16.5L of loan amount according to their process with the interest rate 10.4% which is really high. I was eligible for the government scheme, but bank executive has not taken step to avail it. It took around 20 days to process the loan. There is no proper response for customers. I am trying to transfer the loan amount to other bank.
      Was this review helpful? 1
      , new delhi
      Reviewed on Jan 18, 2020
    • review Home Loan
      "Need to decrease the rate of interest"
      0.5 5.0/5 "Blown Away!"
      I have taken a home loan from REPCO HOME FINANCE and the loan amount was Rs. 13.25L. The rate of interest is 9.5% which is nominal and the tenure period they given for 20 years and with the EMI of 12450. I receive this loan within 25 days. Earlier i was applied through onlne , they asking heavy documents, so i applied directly through bank. Documentation was simple, i have given only address proof and salary slip.
      Was this review helpful? 1
      , coimbatore
      Reviewed on Jan 18, 2020
    • HDFC Limited Home Loan
      "prompt app based sercice."
      0.5 3.0/5 "Satisfactory"
      theybhelped me transfer my loan. they r much focussed on small documents and delayed due to it but deliveredat last. got my emi reduced by 3000/- approx. the agent concerned was verybhelpful and collected all details from my home. it was actually home based home loan.
      Was this review helpful? 0
      , kolkata
      Reviewed on Jan 18, 2020
    • LIC Housing Home Loan
      "fraudesters and corrupt to the core organisation."
      0.5 0.5/5 "Unacceptable"
      the office staff are very bad behaving with customers. LICHFL is very fraud, corrupt to the core and worst organisation. they even wanted money for the closure/balance transfer of loan. employee named piyali das posted at chowringhee sq branch was involved with the branch manager. they ensured the delay of my loan transfer on arious pretexts. i mailed to agm. no respinse. no body listens there to customers. the rae of interest never falls once youbtake loan. is advised to beware of their trap.
      Was this review helpful? 0
      , kolkata
      Reviewed on Jan 18, 2020
    • SBI Home Loan
      "Easily accessible with less documents"
      0.5 4.0/5 "Great!"
      I have got a pre-approved home loan from SBI and they have given me a offer like that their interest rate is starting from 7% but they have provided me a interest rate 8.25%. I had applied the loan amount of Rs. 35 lakhs with the duration of 25 years. I heard that interest rates are low so i approached with them. I had a online contact number specially for my home loan so they directly approached my home. They are asking very less of documentation like current residential address, last 3 months payslip, my job offer letter. They have given me a link also to process the loan.
      Was this review helpful? 0
      , chennai
      Reviewed on Jan 18, 2020
    • HDFC Limited Home Loan
      "Easy loan"
      0.5 3.0/5 "Satisfactory"
      My home loan was taken from HDFC Limited but the rate of interest was nominal. The interest rate was 10.8% when I took the loan and it will be good if I get an offer around 8%. Pre closure is there, but i am not sure about the charges and i am paying EMI of Rs.20280 with the tenure of 15 years.
      Was this review helpful? 1
      , chennai
      Reviewed on Jan 17, 2020
    • review Home Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      I have taken home loan directly through Saraswat Cooperative Bank .The rate of interest and the processing fee was nominal and got this loan sanctioend on time without any delay .Each and evey information about th loan was cleary shared by the agent .I am convenient with the service so far .
      Was this review helpful? 0
      , thane
      Reviewed on Jan 17, 2020
    • Karnataka Bank Home Loan
      "Very Good Service"
      0.5 5.0/5 "Blown Away!"
      I have taken home loan directly through Karnataka Bank.The rate of interest was 8.37% it was very less and there was no processing fee.This loan was sanctioned within 20 days .They have collected few documents like id proof address proof and income proof only since have salary account here.
      Was this review helpful? 0
      , surat
      Reviewed on Jan 16, 2020
    • Axis Bank Home Loan
      "Interest rate should be low"
      0.5 3.0/5 "Satisfactory"
      Axis bank customer care people offered me a home loan in a proper manner and i got the loan very easily so that i have selected the Axis bank for my home loan. I bought the loan amount of Rs. 3 lakhs and the offered interest rate was 13%. They do have a part payment and pre-closure facility without any additional charges. Documentation process was very simple and easy.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jan 16, 2020
    • Punjab National Bank Home Loan
      "Overall not good"
      0.5 2.0/5 "Expected more"
      My home loan was taken from PNB Housing but the rate of interest is very high and disbursement was not happened in a proper way especially final disbursal. Since my builder where i bought the flat has a tie up with the PNB Housing, i have selected the same. When i compared to other bank, interest rates are quite high.
      Was this review helpful? 1
      , hyderabad
      Reviewed on Jan 16, 2020
    • ICICI Bank Home Loan
      "Good Service"
      0.5 4.0/5 "Great!"
      I have availed home loan directly through ICICI Bank .The rate of interest and the processing fee was very less.This loan is still active and got the loan amount on time without any delay.I have just uploaded the documents throuhg online .I am really satisfied with the service.
      Was this review helpful? 0
      , kolkata
      Reviewed on Jan 13, 2020
    • HDFC Limited Home Loan
      "Easy process"
      0.5 5.0/5 "Blown Away!"
      I have taken home loan through HDFC in the year of 2014.The rate of interest was very nominal and have processed due to my requirements.The rate of interest was 10.25% and the EMI of 22210 and there is a no processing fee. Documentation process was simple, executive collected the documents.
      Was this review helpful? 1
      , thane
      Reviewed on Jan 12, 2020
    • HDFC Limited Home Loan
      "Best Service"
      0.5 5.0/5 "Blown Away!"
      My home loan was availed through HDFC Ltd.I have completed successfully one year now.This loan was sanctioned on time without any delay.The agent shared all the details about the loan process ,The loan process was clearly shared by the agent ,This loan is still active on my account ,I have not yet undergone any drawbacks until i received the loan.
      Was this review helpful? 1
      , sitarganj
      Reviewed on Jan 12, 2020
    • IOB Home Loan
      "Good service"
      0.5 5.0/5 "Blown Away!"
      I have taken home loan from INDIAN OVERSEAS BANK for more than 3 months. I got an offer from bank directly. They have sanctioned the loan amount of 20L with tenure period of 20 years. The rate of interest of 8.5% and there is no processing fee. There is an option of pre closure and part payment. EMI is use to pay only 20K. They took to sanctioned the loan of 1.5 months. Their service is good.
      Was this review helpful? 0
      , bangalore
      Reviewed on Jan 11, 2020
    • SBI Home Loan
      "Good service "
      0.5 5.0/5 "Blown Away!"
      I have taken a home loan from SBI and they offered me a less rate of interest and i am not sure what i am paying. Customer service is good. Their online application is not a user friendly. I have taken a loan amount of Rs. 8,50,000 and there is no preclosure charges.
      Was this review helpful? 3
      , guntur
      Reviewed on Jan 09, 2020
    • HDFC Limited Home Loan
      "Good service"
      0.5 3.0/5 "Satisfactory"
      I am very much comfortable with HDFC limited and I have taken a home loan to purchase the constructed property. I have applied through bank executive and the process was easy and quick. They offer with the rate of interest around 8.75% floating.
      Was this review helpful? 1
      , noida
      Reviewed on Jan 04, 2020
    • LIC Housing Home Loan
      "Excellent Service"
      0.5 5.0/5 "Blown Away!"
      I have taken Home Loan directly through LIC Housing Finance. The rate of interest was 8.5% and their processing fee was fine.This loan was sanctioned on time without any hassle .This was a paperless approval and this loan is still active .I have not undergone any issues so far .
      Was this review helpful? 3
      , chandigarh
      Reviewed on Jan 04, 2020
    • Axis Bank Home Loan
      "Good Loan Service"
      0.5 4.0/5 "Great!"
      I took the home loan from Axis bank. Customer care response was good and the executive came to my place to collect the documents and they have verified everything. They have sanctioned the loan in 15 days of time. Overall, it was a hassle free process.
      Was this review helpful? 3
      , bangalore
      Reviewed on Dec 31, 2019
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