Car Loan or Vehicle Loan
This is usually used to meet your financial requirement when one is planning to have his dream car or bike. It is usually a secured loan where collateral is your vehicle and in case of default, lender may recover it by taking back your vehicle. But some lenders offer unsecured loans where your credit score matters more.
Gold Loan
Gold loan is sanctioned by accepting the gold ornaments of the customer as a pledge. It is true that Gold loans, like personal loans or credit card borrowings, are often used for short term household requirements. However, in terms of the cost and ease of availing the loan, and the convenience when repaying, gold loans are a better bargain. Gold loans are cheaper and can be availed of in minutes. You can also stretch the repayment to your convenience.
Loan against Insurance Policies
You can use your insurance investment as either collateral or take loan from insurer itself if that policy is eligible for loan. Usually, loans will be available after 3 years of policy period. You will get loan easily on your policy from insurer. But another method to take loan is to pledge your policy document with banks and take loan on that.
Loan against Bank FDs
This is one form of loan where your collateral is your bank FD itself. Suppose you have bank FD of around Rs.10,00,000 then you are usually eligible to get loan up to Rs.8,00,000. But interest rate will be 1-2% higher than your FD rate. But still this form of loan fastest and the best way.
Loan from unrecognized sector
This is one of the easiest but costliest ways of fulfilling your financial dream. Usually interest rate will be in the range of 20% – 30% but you can manage it immediately. Such type of loans is useful to those who are running out of time and lacking proper source to fund their financial requirements. But looking at this option is a costly affair. Hence, it is highly advisable to avoid such funding.
Loan from PPF or EPF
You can avail loan from PPF when one satisfies certain conditions. You can avail loan from EPF too. But you can avail loan from EPF only for special purposes like purchase of plot, medical treatment, education or marriage of children, construction or purchase of house, re-payment of home loan, and renovation of home or pre-retirement. But all are not eligible to take loans. There are certain conditions like minimum years of completion, age or proof needs to be produced. So, it seems a bit lengthy procedure.
LEASE RENTAL DISCOUNTING
A Property Owner who receives fixed rent from tenants can get a loan from any financial institution against their owned premises, which is called the Lease Rental Discounting.
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LOAN AGAINST PROPERTY
Loan can be availed against your existing Residential, Commercial Property or a Vacant piece of land. It is a great way to get a loan at low interest rates to meet your current financial needs without actually selling off the same.