Due to the unequal distribution of wealth, India has
arrived at a situation where the affluent class gets richer and richer and the
underprivileged becomes poorer. To bridge this financial gap and to satisfy
their day to day requirements, Bank plays a vital role by offering various
loans to the finance seekers. Hence every borrower should have prior knowledge
on the various Bank Loans in India, which are eligible for meeting their
financial objectives.
Types
of Bank Loans Offered by Banks in India
The various Loans offered by Banks in India are mentioned as under:
Personal Loans
Personal Bank Loans are the credits which a bank offers to its customer to meet his instant personal requirements ranging from home renovation to purchasing of new laptop, a getaway with family or for reimbursing the credit card liabilities, for buying a new car or for child's education, etc. Personal loan simplifies the cash flow of the customer besides handling its immediate needs.
Personal Loans
|
Eligibility
|
For salaried Individuals
|
For Self-Employed
Individuals
|
|
Minimum and Maximum Age
|
21 years and 58 years
respectively
|
25 years and 65 years
respectively
|
|
Maximum Annual Income
|
Rs. 1,20,000
|
Rs. 1,50,000
|
|
Minimum years in
service/ business
|
1 year
|
3 years
|
|
Loan Amount
|
Rs 50,000 to
|
Rs 15,00,000
|
|
|
Rs. 50,000 to
|
Rs. 15,00,000
|
|
Loan Tenure
|
1 years to 7 years
|
1 years to 7 years
|
|
Interest Rates
|
12-24%.
|
12-24%.
|
|
Mode of Repayment
|
Post-dated cheques or
Standing orders to debit from personal A/c
|
Post-dated cheques or
Standing orders to debit from personal A/c
|
Home Loans
To buy a dream home is the dream of every person. Home Loan has helped in changing every Indian's dream into reality. However, the every increasing property rates and escalating rates of interest sometimes act as an obstacle. Therefore, before opting for a home loan it is advisable to check every prospect of the product.
Home Loans
|
Eligibility
|
For salaried Individuals
|
For Self-Employed
Individuals
|
|
Minimum and Maximum Age
|
21 years and 65 years
respectively
|
21 years and 70 years
respectively
|
|
Maximum Annual Income
|
Rs. 1,00,000
|
Rs. 1,50,000
|
|
Minimum years in
service/ business
|
1 year
|
3 years
|
|
Loan Amount
|
Rs 2,00,000 to
|
Rs 2,00,00,000
|
|
|
Rs 2,00,000 to
|
Rs 2,00,00,000
|
|
Loan Tenure
|
5 years to 20 years
|
5 years to 20 years
|
|
Interest Rates
|
9-16%
|
9-16%
|
Tax Benefits on Home Loans: Any person who opts for home loan is entitled for tax benefits under Income Tax Act, 1961 on principal and the interest amount in the form of deductions from the chargeable earnings.
Bank Loans against Property
Property Loan or Loan against property is a kind of loan which is allowed by the bank on the condition of keeping the customer's current assets as a security with them. These loans are very useful when other resources of financing get exhausted.
It is significant to recognize that a loan against property is not similar to mortgage. While loan against property is obtained from the bank by allocating customer's current assets as a security against the credit, a mortgage is an instrument for purchasing an asset. On the basis of the current market situations, the paid up cost of the asset and other aspects, the cost of the credit against asset can range anywhere from 40% to 60% of the asset costs.
Loans against Property
|
Eligibility
|
For salaried Individuals
|
For Self-Employed
Individuals
|
|
Minimum and Maximum Age
|
21 years and 60 years
respectively
|
21 years and 65 years
respectively
|
|
Maximum Annual Income
|
Rs. 1,20,000
|
Rs. 1,50,000
|
|
Minimum years in
service/ business
|
1 year
|
3 years
|
|
Loan Amount
|
Rs 2,00,000 to
|
Rs 1,50,00,000
|
|
|
Rs 2,00,000 to
|
Rs 1,50,00,000
|
|
Loan Tenure
|
1 years to 15 years
|
1 years to 15 years
|
|
Loan to cost ratio
|
60% of residential cost
|
50% of commercial cost
|
|
60% of residential cost
|
50% of commercial cost
|
|
|
Tax Rebate
|
NIL
|
NIL
|
Business Loans
Before starting a business, the entrepreneur should be mentally and financially prepared to encounter the fiscal setbacks during the process. To bail the companies out from the fiscal crunch, several banks in India offers business Loans both for meeting urgent official growth and expenses. Other details of Business Loans offered by Banks in India are:
Car Loans
Every individual want to own a car. Hence, the need for car loans emerges at some point or the other. While selecting a car loan it is always wise to scrutinize the various options accessible in the market besides analyzing its fiscal suitability.
Car Loans
|
Eligibility
|
For salaried Individuals
|
For Self-Employed
Individuals
|
|
Minimum and Maximum Age
|
21 years and 60 years
respectively
|
21 years and 65 years
respectively
|
|
Maximum Annual Income
|
Rs. 1,00,000
|
Rs. 60,000
|
|
Loan Amount
|
Rs. 1,00,000 (new) and
Rs. 50,000 (old) to
|
Rs. 20,00,000
|
|
|
Rs. 1,00,000 (new) and
Rs. 50,000 (old) to
|
Rs. 20,00,000
|
|
Loan Tenure
|
1 years to 7 years
|
1 years to 7 years
|
|
Loan to cost ratio
|
85-90% of car cost
|
85-90% of car cost
|
Education Loans
Education Loans offered by various banks in India provide much required assistance to fund your child's education when all other resources of finance get exhausted. Education Loans are offered by almost every Indian bank thus providing ample opportunity to students to undergo higher education both in India and abroad.
Education Loans
|
Eligibility
|
For Students
|
|
Minimum and Maximum Age
|
16 years and 26 years
respectively
|
|
Expenses covered
|
course and examination
fee, refundable deposits, procurement of books, travel expenses
|
|
Loan Amount for studies
in India
|
Upto Rs 10,00,000
|
|
Loan Amount for studies
abroad
|
Upto Rs 20,00,000
|
|
Repayment Period
|
5-7 years
|