\r\n\r\n<\/span><\/p>\r\n \r\n\r\n<\/span><\/p>\r\n Usually, there are two types of loans available in India namely secured loans and unsecured loans. In the case of Secured loans, the borrower has to pledge some assets (such as property, car, shares, debentures, etc.) as collateral. But in the case of unsecured loans, the borrower\u2019s assets are not pledged as collateral. The loan is given on the basis of the creditworthiness of the borrowers.<\/span><\/p>\r\n \r\n\r\n<\/span><\/p>\r\n \r\n\r\n<\/span><\/p>\r\n Any Individual can get a home loan if the individual has a good credit score. A home loan is available for any of the following purposes.<\/span><\/p>\r\n \r\n\r\n<\/span><\/p>\r\n \r\n\r\n<\/span><\/p>\r\n \r\n\r\n<\/span><\/p>\r\n Generally, you can get a maximum amount of 85% of loans against the value of the property from the bank or any other financial institution. If the value of the property is Rs. 30 Lakh then you will get a maximum amount of [85% of Rs. 30 Lakh = Rs. 25.5 Lakh.]<\/span><\/p>\r\n \r\n\r\n<\/span><\/p>\r\n The home loan repayment tenure is generally of longer tenure varying between five years and twenty years. The Interest rate offered by some of the top banks in India is between 8% and 8.6%.<\/span><\/p>\r\n \r\n\r\n<\/span><\/p>\r\n \r\n\r\n<\/span><\/p>\r\n Education loans are granted for Indian national students for pursuing higher education either in motherland India or abroad. The maximum amount of loan sanctioned is up to Rs.7.5 lakh for studies in India and up to Rs. 15 lakh for studies abroad. The repayment of education loans is not required during the study period. But you need to start the repayment of the loan between six months and two years after the course completion. Usually, the tenure of repayment of education loan varies between 10 years and 15 years in accordance with the loan amount and when the repayment of education loan begins. The interest rate varies between 11% and 15%.<\/span><\/p>\r\n \r\n\r\n<\/span><\/p>\r\n \r\n\r\n<\/span><\/p>\r\n Car or Vehicle loans are easily granted if you have fulfilled the following conditions with less paperwork and within one week. You will get a vehicle loan with ease if you satisfy the following conditions,<\/span><\/p>\r\n \r\n\r\n<\/span><\/p>\r\n \r\n\r\n<\/span><\/p>\r\n The maximum amount of loan sanctioned is up to 85% of the on-road price or 90% of the ex-showroom price. Usually, the tenure of repayment of car loans varies between 1 year and 7 years according to the loan amount. The interest rate varies between 9% and 14%.<\/span><\/p>\r\n \r\n\r\n<\/span><\/p>\r\n \r\n\r\n<\/span><\/p>\r\n Most banks offer Personal loans that help an individual to meet financial needs such as medical expenses, travel costs, wedding expenses, home renovation, etc. Generally, Personal loans are unsecured loans since your lender i.e.\u00a0 Bank or financial organization gives you the amount without any collateral.<\/span><\/p>\r\n \r\n\r\n<\/span><\/p>\r\n \r\n\r\n<\/span><\/p>\r\n But in order to get a personal loan, you need to comply with the following points,<\/span><\/p>\r\n \r\n\r\n<\/span><\/p>\r\n \r\n\r\n<\/span><\/p>\r\n The Personal loan\u00a0is available for a minimum\u00a0amount\u00a0of Rs. 24, 000 and a\u00a0maximum amount\u00a0of 24 times the Net Monthly Income or Rs. 15 Lakh which is less. The repayment of loan tenure is between one year and five years. The interest rate is between 11% and 15%.<\/span><\/p>\r\n \r\n\r\n<\/span><\/p>\r\n \r\n\r\n<\/span><\/p>\r\n A Business loan is availed by self-employed and businessmen for business purposes such as financing or expansion of any business. The loan amount varies between one lakh and one crore. You will get an easy business loan if you have a good credit score and you are running the business for the past 3 years. The tenure of the business loan varies between 6 months and 5 years. The interest rate varies between 12% and 17%.<\/span><\/p>\r\n \r\n\r\n<\/span><\/p>\r\n \r\n\r\n<\/span><\/p>\r\n Working capital loans are availed by business organizations or firms for financing their day-to-day business operations. The loans are usually taken to meet the expenses such as wages of employees, or accounts payable or during times of reduced business activity. The loan amount you will get depends on business turnover, the repayment behaviour i.e. credit score, and relation with the lender. The tenure of this type of loan varies between 3 months and one year. The interest rate varies between 12% and 16%.<\/span><\/p>\r\n Are you from those suppliers or vendors waiting for payments from your partners who typically take a long time to settle the outstanding dues? Owing to outstanding dues, you are unable to expand your inventory or halt your business expansion. Invoice financing may enable a vendor to borrow the money from the banks or financial institutions against the dues from the customers to meet its short-term liquidity needs. With the help of this loan, the vendor can run its day to day business. In other words, the invoices of dues work as a guarantee for the vendor.<\/span><\/p>\r\n The benefit of invoice financing is that the company can utilize the fund whenever received from banks or lenders to pay the salary to employees or to buy equipment etc. without waiting for account receivables to come from the clients.<\/span><\/p>\r\n Invoice financing is made via two ways. One is Invoice Factoring and the other one is Invoice Discounting.<\/span> Companies can get up to 90% of the invoice amount via invoice financing. The interest rate varies between 12% and 17%.<\/span><\/p>\r\n When a company requires money to finance several requirements such as the expansion of business or to set up a new unit, the company makes use of equity financing from the retail investors by selling a percentage of the business or the company to the investors, in exchange for capital. The investors who buy the share of any company have a voting right.<\/span><\/p>\r\n Usually, a company can raise funds via issuing Initial Public Offerings, or via venture capital financing. Venture capital financing is beneficial to raise money from high net worth individuals who are looking for investment across various companies to diversify and minimize the risks associated.<\/span><\/p>\r\n In the case of initial public offering when the company raises funds from retail investors the venture capitalists have an option to sell or reduce their stake by selling equity shares to institutional or retail investors.<\/span><\/p>\r\n25 Different Types of Loan in India<\/strong><\/span><\/h2>\r\n
Loan#1. Home Loan<\/strong><\/span><\/h3>\r\n
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![\"Types](\"http:\/\/capitalante.com\/wp-content\/uploads\/2019\/02\/Types-of-Loan-Home-Loan.png\")
<\/a><\/span><\/figure>\r\n<\/div>\r\nLoan#2. <\/strong><\/span>Education Loan<\/strong><\/span><\/span><\/h3>\r\n
Loan#3. Car or Vehicle Loan<\/strong><\/span><\/h3>\r\n
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Loan#4. Personal Loan<\/strong><\/span><\/h3>\r\n
Points to consider<\/strong><\/span><\/h6>\r\n
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Loan#5. Business Loan<\/strong><\/span><\/h3>\r\n
<\/a><\/p>\r\n\r\n
Loan#6. Demand Loan or Working Capital Loan<\/strong><\/span><\/h3>\r\n
Loan#7. Cash against Invoice or Invoice Financing<\/span><\/strong><\/h3>\r\n
Types of Invoice Financing<\/span><\/strong><\/h4>\r\n
In the case of Invoice Factoring, a vendor or a business person approaches a financer or a bank to sell unpaid invoices. On being satisfied the lender may issue up to 75 percent of the value of the invoices to the borrower. If the lender receives full payment from customers, it will repay the balance amount less interest or other charges back to the company.<\/span>
The Invoice Discounting is a way where the vendor can receive as much as 90 percent of value of the invoices. In the case of Invoice Discounting, the customers make the payment directly to the business, not the lender. Therefore the customers are not aware that the business is using Invoice Financing for its financial needs. When the payment is received from the customers the business repays the financing company without any interest or fee.<\/span><\/p>\r\nLoan#8. Equity Financing<\/span><\/strong><\/h3>\r\n