Different Types of Loans that You Should Know

Types of Secured Loans: 

1. Secured Loans: Loans provided against collateral, reducing lender risk.
2. Unsecured Loans: Loans granted based on income and credit history, without collateral.
3. Home Loans: Secured loans for purchasing or constructing homes, offering lower interest rates.
4. Gold Loans: Loans secured against gold possessions, with interest starting from 7.50% per annum.
5. Vehicle Loans: Secured loans for purchasing vehicles, with interest rates around 7% per annum.
6. Loan Against Property: Mortgage loans utilizing residential or commercial property, with interest starting from 8% per annum.
7. Loan Against Securities: Loans against shares and securities, with an LTV of 50% and interest rates varying.
8. Title Loans: Loans against vehicle collateral, with interest rates around 25% per month.
9. Non-recourse Loans: Secured loans where the lender can’t proceed against the borrower if the collateral doesn’t cover the debt.
10. Loan Against Fixed Deposits: Loans against fixed deposits with an LTV of 60%-75%, offering lower interest rates.
11. Loan Against Insurance: Loans against life insurance policies, with an LTV of 85%-90% and interest rates starting from 10% per annum.
12. Working Capital Loans: Loans aiding businesses’ working capital needs, secured against stock and debtors.

Types of Unsecured Loans:

1. Personal Loans: Loans based on income and credit score, with interest rates ranging from 8% to 10% per annum.
2. Short-term Business Loans: Loans assisting businesses in financial crises, with interest rates between 12% and 18% per annum.
3. Education Loans: Loans for educational expenses, starting from 8.85% per annum.
4. Credit Cards: Unsecured spending tools with high-interest rates, affecting the borrower’s credit score.