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Other loans

There might be a misconception in your minds that Indian banks just offer home loans and car loans. However, there are many more loans that are offered by banks in India. The chief amongst them are Loans against Property, Education Loans, Business Loans, and also Credit Card Loans.

We will talk in brief about each of these loans.

Loans against Property

These loans fall into the category of secured loans. As the name suggests, in 'Loans against Property', the buyer offers a guarantee or collateral to the bank in the form of his property. This property is security against the non-payment of the loan. Let there be no doubt that the borrower will still have the right of ownership, however, if he/she is unable to repay the borrower amount, then he/she can sell the property in order to repay the loan amount.

These loans are typically chosen by people who want to expand their business, or renovate their home, or some such purpose that asks for a substantial amount of investment. If you are looking for information regarding the maximum and minimum loan amount that can be offered by a bank, then its best to approach the specific banks for this purpose. This is because, the amount varies from one bank to another and the range could be anything from Rs 2 lakhs to a mammoth Rs 100 lakhs.

More often than not the maximum loan amount that is offered by banks is 65% of the value of the property in case of residential properties and 50% of the value of the property in case of commercial properties, facilities, or setups. Moreover, the loan tenure is usually upto 15 years.

Credit Card Loans

As can be imagined from the name, loans are offered on the credit card held by a person, and these are called credit card loans. Not all banks offer such a facility. What a bank does is that any purchase made on credit card that is above a certain pre-determined cost, is converted into a loan by the bank. There are various loan tenure options offered by the bank and the interest rates are dependant on the kind of credit card owned by the borrower.

Business Loans

There are various types of business loans offered by the banks:

» Business Credit Loans

People who own a business are constantly looking at making improvements and expansion with regards to their business. Many a times, business finance is required on an urgent basis, and therefore banks offer this lending facility, especially for small and medium businesses. This is because one gets a business credit loan with a very minimum amount of security or collateral.

» Business Property Loans

There are a number of banks that cater to this particular requirement of the business. They offer loan options for the buying of business property.

» Business Overdraft Loans

Most banks offer a business overdraft loan that can be taken by a business against various investments. The one advantage of this loan is that you would not need to go through a liquidation of your precious investment, but still be able to meet your urgent financial needs and requirements.