Top 7 Types of Loans You Can’t Avoid in Your Life

We all know that taking a loan is actually welcoming big liability in ones life. Do you really know how important role these loans take place in our life? You might be thinking that people take loan only to achieve luxury in their life. But this is not true. I would rather say that by taking a loan you can achieve something better & early compared to your current financial capability to achieve the same. In this article we will talk about different types of loans in India and how well they are actually helping you to get something easily.

Top 7 Different types of loans in India

I know these loans are not only relevant to India, rather its common in every country. But before approaching any loan, you should always know how much you are capable to repay or how quickly you can repay the loan. Its not like you can get anything by taking a loan. In such a case, be ready to make your life more miserable in coming days. Anyway let’s find out the common types of loan we might have to take in our everyday life.

Education Loan: This is a very helpful loan I must say. Now a days money is not at all a factor when someone is planning for higher studies. You can take an Education loan and complete the education and then repay the money from your salary. So, if you don’t have enough money to do a MBA from any reputed university only because of money, then banks are there to help you. You just make sure you become more skillful or efficient after doing the MBA to get a better job.

Home Loan: If you are planning to buy your dream home and the price for the same is 50 lakh now. Then I am sure it is not possible for you to buy the home by paying entire 50 lakh right away. At least if you are salaried person. But a home loan can solve your problem right away and help you to buy that house for you and also give you the flexibility to repay the money over a period of time.

Personal Loan: Personal loans are not treated as a good loan, as the interest rates are very high and many people got trapped by taking personal loans. But just think if you are planning to start a business or anything and you need some urgent cash, who will give you the money?

Car Loan or Vehicle Loan: Buying a car in India is very easy now. A car loan will solve your problem and help you to buy your preferred car without any compromise.

Top Up Home Loan: These loans are actually good in case you have some plan to decorate your newly bought home or do some modification or beautification.

Gold Loan: This is another way to ask for personal loan in real terms. In fact a Gold loan is better than personal loan. If you have enough gold then you can deposit the same in bank ask for a gold loan to fund your emergency.

Loan against PPF account: PPF account is another good source of money almost every salaried person is having. Over the period of time your EPF account will be accumulating a good amount of money. And people used to take loan against EPF account to serve various family purposes like kids education, marriage, medical support etc.

So, how many loans you have approached so far in life? Personally I took home loan, personal loan and car loan so far. Among them I am able to close the personal loan and car loan, but still continuing the home loan. Frankly speaking taking a loan is a good way to manage your financials & dream but till the time you are not able to repay them 100%, you have to bear the mental stress of EMI. 🙂

Share your story of taking a loan and how quickly you are able to close the same.

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