What are some overlooked loan options?
What's the story
In India, financial literacy has improved, but many still overlook niche loan options. These lesser-known loans can be tailored to specific needs, offering flexibility and benefits that traditional loans may not. By understanding these options, borrowers can make informed decisions and potentially save money. This article explores various niche loan options available in India, highlighting their features and advantages.
Medical loans
Personal loans for medical emergencies
Personal loans for medical emergencies are specifically designed to cover unexpected healthcare costs. These loans usually come with minimal documentation and quick approval processes, making them ideal for urgent situations. Borrowers can use these funds to pay hospital bills, purchase medicines, or cover any other medical expenses without delay. The interest rates on these loans are often competitive compared to credit cards.
Education financing
Education loans with flexible repayment
Education loans in India provide flexible repayment options for students pursuing higher studies. These loans cover tuition fees, accommodation costs, and other educational expenses. Some lenders even offer moratorium periods during which no EMI is payable until after course completion or job placement. This flexibility allows students to focus on their studies without financial stress.
Eco-friendly financing
Green home loans for eco-friendly homes
Green home loans incentivize borrowers who invest in energy-efficient properties or renovations. These loans come with lower interest rates or processing fees as a reward for promoting sustainable living practices. By opting for a green home loan, you not only save money but also contribute to environmental conservation by reducing carbon footprints through energy-efficient homes.
FD-backed loans
Loan against fixed deposits (FDs)
Loans against fixed deposits provide immediate liquidity by allowing borrowers to take a loan against their existing FDs without breaking them prematurely. These loans generally have lower interest rates than personal or credit card loans since they are secured against the deposit amount. Borrowers can access funds quickly while still earning interest on their fixed deposits.
Mortgage enhancement
Top-up home loans on existing mortgages
Top-up home loans allow existing mortgage holders to borrow additional amounts against their current home loans at lower interest rates than personal loans or credit cards. This option is ideal for those looking to finance personal expenses like medical bills or education costs without taking out separate high-interest borrowing options.