A Home Loan is a financial facility offered by banks and financial institutions to help individuals purchase, construct, or renovate residential property. Borrowers repay the loan in equated monthly installments (EMIs) over a fixed tenure.

Here are some key aspects of Home Loans:

  • Structure: Home loans are secured against the property being purchased or constructed, which acts as collateral.
  • Tenure: Repayment tenure generally ranges from 10 to 30 years, making EMIs affordable.
  • Interest Rates: Borrowers can choose fixed or floating interest rates depending on financial planning needs.
  • Tax Benefits: Home loans offer tax benefits on both principal and interest repayments under the Income Tax Act.

A Loan Against Property (LAP) is a secured loan where borrowers pledge their residential, commercial, or industrial property to avail funds. It is ideal for meeting personal or business financial needs.

Here are some key aspects of Loan Against Property:

  • Structure: The property remains in the borrower's name, but is mortgaged to the lender as security.
  • Usage: Funds can be used for education, medical expenses, business expansion, or debt consolidation.
  • Tenure: Loan tenure usually ranges from 5 to 15 years, allowing flexible repayments.
  • Lower Interest Rates: Since LAP is secured, it carries lower interest rates compared to unsecured loans.

A Car Loan is a type of secured loan that enables individuals to purchase a new or used vehicle by borrowing from banks or financial institutions. The vehicle itself acts as collateral until the loan is repaid.

Here are some key aspects of Car Loans:

  • Structure: Lenders finance up to 80-100% of the car's on-road price, depending on eligibility.
  • Tenure: Repayment tenure generally ranges from 1 to 7 years.
  • Interest Rates: Rates depend on the borrower's profile, car type, and lender policies.
  • Ownership: The borrower enjoys full usage rights, while the lender retains hypothecation until repayment.

A Personal Loan is an unsecured loan that helps individuals meet immediate financial needs such as medical emergencies, weddings, travel, or debt consolidation. It does not require any collateral.

Here are some key aspects of Personal Loans:

  • Structure: Being unsecured, personal loans are granted based on income, credit score, and repayment ability.
  • Tenure: Usually ranges between 1 to 5 years, with fixed EMIs.
  • Flexibility: The loan amount can be used for any purpose without restrictions.
  • Quick Disbursal: Known for fast approval and quick fund transfer.

A Business Loan provides financial support to entrepreneurs and business owners for meeting working capital needs, expansion, or operational expenses. It can be secured or unsecured depending on the lender's requirements.

Here are some key aspects of Business Loans:

  • Structure: Loans can be secured against assets or unsecured based on business performance and credibility.
  • Usage: Suitable for purchasing equipment, funding expansion, or managing cash flow.
  • Tenure: Usually ranges from 1 to 10 years, depending on business needs.
  • Eligibility: Lenders evaluate turnover, profitability, and creditworthiness before sanctioning.

A Gold Loan is a secured loan where borrowers pledge their gold ornaments or jewelry to obtain funds. It is a quick solution for meeting urgent financial requirements.

Here are some key aspects of Gold Loans:

  • Structure: The loan amount is determined by the purity and weight of the pledged gold.
  • Tenure: Generally short-term, ranging from a few months to 3 years.
  • Interest Rates: Interest rates are lower compared to unsecured loans due to security backing.
  • Quick Processing: Gold loans require minimal documentation and provide instant disbursal.