Life might throw a financial curve at you at any time. Whether it’s a medical emergency or arranging funds for an urgent and last-minute need, the requirement for quick funds can arise at any time. A fast loan is the best option in times of financial urgency. Loans do provide a quick and flexible way to arrange the required funds. But prior to the application of any kind of loan, one needs to have a clear knowledge of the various kinds of loans that are available in the market.
The different types of loans that are available in the market are:
- Secured Loans: These are the types of loans that are provided by the bank to individuals against a certain security. Often termed as ‘collateral security’, this can be in any form, like gold, property or even FDs.
- Home Loans: This is the most common type of secured loan, which is provided for the construction or purchase of a new house. Here, the new house itself acts as a security for the borrower.
- Gold Loans: Here, any amount of gold or gold jewellery is presented as collateral security to avail a loan.
- Vehicle Loans: Here, a personal vehicle, such as a motorcycle or car, is offered as collateral for an instant loan.
- Loan against Property: In this case, your existing property serves as collateral security for the loan approval.
- Loan against FD: If you have an existing FD, you can use it as collateral for a loan. Many banks offer a loan amount of up to 60%-70% of the FD value.
- Unsecured Loans: These are the types of loans that are provided by the bank against no security or against the income-earning potential of the borrower. It is the exact opposite of secured loans.
- Easy Personal Loan: An unsecured personal loan is one of the most common types of financial security.
These loans are offered without the need for any collateral security. An unsecured finance loan only needs the security that solidifies the income-earning capability of the borrower.
Famously known as salary loans, this type of unsecured personal loan can easily be availed online.
Just search salary loan online or ‘easy personal loan’ on the internet, and you will be provided with the best options to choose from.
- Short-Term Business Loans: These are another famous type of unsecured loan that are mainly applied for kickstarting a business idea or at any time when an established business is facing a financial crisis.
- Education Loans: The cost of education is on a rapid incline these days. The need to arrange funds for higher education has almost skyrocketed, making education loans one of the most famous types of unsecured loans.
Key factors you should consider before choosing a fast loan for your needs:
- Interest Rate: Ensure that you compare the interest rates offered by different leading financial institutions or banks.
- Processing Time: Always opt for the bank that has the least amount of processing time.
- Repayment Tenure: Make sure that the loan option that you select has a flexible repayment tenure that doesn’t put you under financial stress.
The urgency to arrange a specific amount of funds can be very pressurising, leading you to select the first fast loan option you see online. Nonetheless, this is not the best thing to do. Before you select the right type of loan that fits your needs perfectly, you should always compare and analyse the different options that are available in the market.