Types of personal loan

Personal Loan is a kind of loan that you can use to fulfil any of your personal need whether it is related to your business, education or agricultural. Further, there are types of personal loan. Let us discuss them one by one. Basically, Personal Loan is of two types:-

Types of Personal Loan:

1. Term Loan
2. Overdraft Loan

Term Loan:

A term loan is a kind of personal loan where you have to pay the rate of interest on the whole amount of the loan, whether you use it or not. It does not matter that use used that amount or not. You will have to pay the rate of interest on the whole amount throughout the tenure of the loan.

Overdraft Loan:

In this type of loan, you will be charged only on that amount of loan that you have used from the sanctioned amount. There is no need to pay the interest rate for the whole amount of loan. Like if you have taken a personal loan of amount Rs. 20 Lakhs and you only used 10 Lakhs then you will pay the interest only on those used Rs. 10 Lakhs.

Besides this on the basis of the rate of interest there are further two types:

1. Fixed-Rate Personal Loans.
2. Variable Rate Personal Loan.

Fixed-Rate Personal Loan:

This is the first type of personal loan. In this kind of personal loan, you can return your loan on fixed EMI’S. EMI’s will be the same throughout the period of the loan. It always has fixed interest rate.

Variable Rate Loans:

Interest rates are not fixed in case of variable rates loans. They can vary in the tenure of the loan. But personal loans carry “caps” which shows that limit how much your rate of interest can vary.

Uses of Personal Loan:

You can use a personal loan to fulfil any of your personal need. Some of them are given here

1. Education – You can use this amount of personal loan for the educational purpose. You can pay your tuition fees or pay off the bills of our books.
2. Medical Bills – Personal Loan can also be used to pay the medical bills.

To buy a car – Further, you can use your personal loan to buy a car.

How to apply for Personal Loan:

You can easily apply for a personal loan if you meet the personal loan eligibility criteria. You can apply for a personal loan on the site of Dialabank. When you fulfill the form you will get a callback regarding the further process. The application process is easier and quicker. For more information Call on 60011600.

Steps to Apply:

1. First of all search for Dialabank on Google.
2. After that fill the application form for the personal loan.
3. You will get a call back within 5 minutes, with proper guidance.
4. If you will be eligible then your loan will get approved within 10 minutes.

Major Banks and NBFCs providing various types of personal loan are:

• HDFC Bank Personal loan
• AXIS Bank Personal loan
• Private Bank Personal loan
• Fullerton India Personal loan

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Special Note: An individual must examine the whole EMI amount payable to the lender with the Personal loan EMI calculator.