A Loan in Need is a Loan Indeed

If you got a need, the bank’s got that loan. We aren’t kidding! Check out these 5 loans that you might want to take. We, Indians, started taking loans from informal lenders decades ago. Now that things are instant, there is a loan for everything under the sun. Just in case you need a loan, here are 5 loans that might come in handy.

Medical Loan Going to the doctor could be an expensive affair. While consultations start at Rs. 500, costs for surgeries run into lakhs. That’s why a medical loan might be needed. Get this loan for surgery, treatments, therapy, etc. Most lenders provide loans for any medical condition as long as it is listed in their terms and conditions. A medical loan is unsecured. So, you needn’t provide any collateral. The interest rate starts at 11%. The loan tenure is six months to 5 years depending on the loan amount. Note that the treatment amount is paid directly to the hospital and may not be credited to your bank account.

Wedding Loan Always dreamt of a rad wedding that makes you the cynosure of all eyes? Then, get a wedding loan. Even though large loan amounts might need you to provide collateral, most loans are unsecured. Loan amounts start from Rs. 40,000 and go up to Rs. 25 lakhs. The tenure ranges between a year and 7 years. The amount will get credited to your bank account after approval and document verification. You need to be 21 years old to avail the loan.

Travel Loan What’s life without visiting all those foreign lands like enchanting Europe or romantic Rome? A travel loan can help. A travel loan will take care of all your expenses. This includes your stay, transportation, food, flights,etc. The loan amount ranges from Rs. 1,000 to Rs. 25 lakhs. The interest rate starts at 12%. You can apply for the loan on any of the financial institution’s website. The money is usually instantly credited to your account on approval. If you are already a bank customer, the approval takes only 24 hours. The loan tenure ranges from 3 months to 5 years.

Equity Loan Want to invest in the stock market? You can get a loan for Initial Public Offers (IPO). These loans start at Rs. 1,000 and can run into crores. The finance arms of brokerages such as Religare, provide these loans. The loan tenure is 7 days to 90 days. The lender will take care of your IPO investment right from the application process. You just need to provide them your Demat account details. Once the shares are allotted, you will start repaying the loan.

Consumer Durable Loan Making your home liveable is no easy task and if you want all that fancy furniture to adorn your home, you might a consumer durable loan. These are financing schemes offered by Non-Banking Financial Companies (NBFC) for the purchase of consumer durable items. Most of the time these are items that come with a warranty. The list includes air conditioners, television sets, washing machines, computers, furniture, and other household items. Interest rates for these loans start at 9%. The tenure could be between three months and 2 years.

Consider the 0% financing schemes that might be available on select consumer durables. This means you pay a processing fee to purchase the product and pay the product cost in EMIs without paying any interest. Understand the terms of the loan before applying.

Some of these loans may not have premature payment or foreclosure options, which means you cannot close the loan before the loan tenure or prepay the loan amount. Some loans might allow you to prepay after a waiting period. You should read the fine print before signing up for the loan and always compare across lenders to get the lowest interest rate.