Introduction

Understanding finance is crucial, especially when controlling finances. Most of us going through financial constraints are overwhelmed by borrowing options. We tend to manage the decision-making process with friends and family, but sometimes there is little help. When we resort to banks and other financial institutions for loans as a supporting option, most of us need help understanding the exact classification of the loan needed. Indirow is here to help! Let's understand and navigate through the world of personal, business, and home loans. We will first understand the key features of every type of loan.

Personal Loans: Your Multi-Purpose Cash Advance

These are more like a helping hand (financial solution) with personal expenses like debt repayment, medical bills, house renovation, the purchase of a car or appliance, education (which can sometimes be applied for as a separate product), etc. They do not need collateral and are generally of lesser amounts, not more than usually 40 to 50 lakhs. Generally, they are for a shorter period, less than 10 years, and have a mid-to-high rate of interest. They are flexible, with easy repayment options. Read the fine print for any pre-payment penalties!

Business loans are your fuel to build your business dreams!

When your business is facing financial constraints regarding inventory or equipment purchases, marketing and advertising, working capital, etc., these loans are your helping hand. Business loans are generally offered in both secured and unsecured forms; one can provide some type of collateral security to avail of higher amounts for longer tenures. Interest rates range from mid- to high levels, depending on the lender and the creditworthiness of the customer. The loans can vary depending on the need, for example, line of credit, term loans, SBA loans, etc. The repayment is generally between 1 and 10 years, depending on the term of the loan.

Home loans are your way to owning a home!

Whether you are trying to own a home or refinancing your home’s equity, home loans can be a savior. Generally, they have a lower interest rate as the property or home acts as collateral. The borrower needs to provide a down payment and understand the loan terms, generally between 15 and 30 years. One can avail of tax benefits on the interest payments on home loans as well.

How do I choose the right loan?

Understand your needs and financial situation. Get answers to the question: How much do I need? What is the purpose? Comprehend and consider the amount of the loan, its purpose, and your ability to repay it. When you finally analyze these questions, compare the lenders and understand their lending rates and terms of repayment.

Indirow understands this might be a complicated task and hereby assists you by providing you with financial advice from experts, completely free of charge. We help you navigate through the world of lending and choose the right loan for you!