Bank Loans in India

Due to the unequal distribution of wealth, India has arrived at a situation where the affluent class gets richer and richer and the underprivileged becomes poorer. To bridge this financial gap and to satisfy their day to day requirements, Bank plays a vital role by offering various loans to the finance seekers. Hence every borrower should have prior knowledge on the various Bank Loans in India, which are eligible for meeting their financial objectives.

Types of Bank Loans Offered by Banks in India

The various Loans offered by Banks in India are mentioned as under:

Personal Loans

Personal Bank Loans are the credits which a bank offers to its customer to meet his instant personal requirements ranging from home renovation to purchasing of new laptop, a getaway with family or for reimbursing the credit card liabilities, for buying a new car or for child's education, etc. Personal loan simplifies the cash flow of the customer besides handling its immediate needs.

Personal Loans

Eligibility	For salaried Individuals	For Self-Employed Individuals
Minimum and Maximum Age	21 years and 58 years respectively	25 years and 65 years respectively
Maximum Annual Income	` 1,20,000	` 1,50,000
Minimum years in service/ business	1 year	3 years
Loan Amount	` 50,000 to	` 15,00,000
----	` 50,000 to	` 15,00,000
Loan Tenure	1 years to 7 years	1 years to 7 years
Interest Rates	12-24%.	12-24%.
Mode of Repayment	Post-dated cheques or Standing orders to debit from personal A/c	Post-dated cheques or Standing orders to debit from personal A/c

Home Loans

To buy a dream home is the dream of every person. Home Loan has helped in changing every Indian's dream into reality. However, the every increasing property rates and escalating rates of interest sometimes act as an obstacle. Therefore, before opting for a home loan it is advisable to check every prospect of the product.

Home Loans

Eligibility	For salaried Individuals	For Self-Employed Individuals
Minimum and Maximum Age	21 years and 65 years respectively	21 years and 70 years respectively
Maximum Annual Income	` 1,00,000	` 1,50,000
Minimum years in service/ business	1 year	3 years
Loan Amount	` 2,00,000 to	` 2,00,00,000
----	` 2,00,000 to	` 2,00,00,000
Loan Tenure	5 years to 20 years	5 years to 20 years
Interest Rates	9-16%	9-16%

Tax Benefits on Home Loans: Any person who opts for home loan is entitled for tax benefits under Income Tax Act, 1961 on principal and the interest amount in the form of deductions from the chargeable earnings.

Bank Loans against Property

Property Loan or Loan against property is a kind of loan which is allowed by the bank on the condition of keeping the customer's current assets as a security with them. These loans are very useful when other resources of financing get exhausted.

It is significant to recognize that a loan against property is not similar to mortgage. While loan against property is obtained from the bank by allocating customer's current assets as a security against the credit, a mortgage is an instrument for purchasing an asset. On the basis of the current market situations, the paid up cost of the asset and other aspects, the cost of the credit against asset can range anywhere from 40% to 60% of the asset costs.

Loans against Property

Eligibility	For salaried Individuals	For Self-Employed Individuals
Minimum and Maximum Age	21 years and 60 years respectively	21 years and 65 years respectively
Maximum Annual Income	` 1,20,000	` 1,50,000
Minimum years in service/ business	1 year	3 years
Loan Amount	` 2,00,000 to	` 1,50,00,000
----	` 2,00,000 to	` 1,50,00,000
Loan Tenure	1 years to 15 years	1 years to 15 years
Loan to cost ratio	60% of residential cost	50% of commercial cost
60% of residential cost	50% of commercial cost
Tax Rebate	NIL	NIL

Business Loans

Before starting a business, the entrepreneur should be mentally and financially prepared to encounter the fiscal setbacks during the process. To bail the companies out from the fiscal crunch, several banks in India offers business Loans both for meeting urgent official growth and expenses. Other details of Business Loans offered by Banks in India are:

Business Loans

Car Loans

Every individual want to own a car. Hence, the need for car loans emerges at some point or the other. While selecting a car loan it is always wise to scrutinize the various options accessible in the market besides analyzing its fiscal suitability.

Car Loans

Eligibility	For salaried Individuals	For Self-Employed Individuals
Minimum and Maximum Age	21 years and 60 years respectively	21 years and 65 years respectively
Maximum Annual Income	` 1,00,000	` 60,000
Loan Amount	` 1,00,000 (new) and ` 50,000 (old) to	` 20,00,000
----	` 1,00,000 (new) and ` 50,000 (old) to	` 20,00,000
Loan Tenure	1 years to 7 years	1 years to 7 years
Loan to cost ratio	85-90% of car cost	85-90% of car cost

Education Loans

Education Loans offered by various banks in India provide much required assistance to fund your child's education when all other resources of finance get exhausted. Education Loans are offered by almost every Indian bank thus providing ample opportunity to students to undergo higher education both in India and abroad.

Education Loans

Eligibility	For Students
Minimum and Maximum Age	16 years and 26 years respectively
Expenses covered	course and examination fee, refundable deposits, procurement of books, travel expenses
Loan Amount for studies in India	Upto ` 10,00,000
Loan Amount for studies abroad	Upto ` 20,00,000
Repayment Period	5-7 years

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