Home Loan

Any Amount of Money Borrowed from a bank or Non Banking Finance Companies (NBFCs) for the Purchase, Renovation or Construction of a Home at a certain rate of interest, payable in EMI or Equated Monthly Installment over an agreed period, is termed as a Home Loan. The property remains as security with the Bank/NBFC for the term or period of the loan. You may avail a home loan for purposes such as Purchase of Residential Property, Purchase of Residential Land and Construction , Expansion of existing residential property and Renovation.

Loan Against Property (LAP)

The term Loan against Property refers to a mortgage term loan, which you can avail by pledging your property as security or collateral. Such a loan can be availed by an individual, or a business, against existing property as collateral. The mortgage property could be your home, land, industrial building, shop etc. Most banks and NBFCs offer loans against property as multi-purpose secured loans. You can obtain funds of up to 70 to 80% of the market value of your property. Loans against property typically offered at lower interest rates as compared to personal loans or business loans and disbursed within a reasonable period. The fact that you mortgage your property does not mean that you don't own your property. In fact, you may continue to use the mortgaged property for residential or commercial purposes. When you apply for a loan against property, you are required to meet several requirements, including minimum credit scores, and down payments. Your application then goes through a credit process before approval and disbursal.Loan against Property can be done on Residential Commercial and Industrial Properties Few lenders are accepting School Colleges and Hospitals also as collateral.

Business Loans

An Unsecured Business Loan is money you borrow from a lender for business purposes. The lender does not require you to pledge security, and you can repay the loan through Equated Monthly Instalments (EMIs). Eligible borrowers can get an Unsecured Business Loan for new businesses, business expansion, upgrading machinery, funding working capital, revamping the business space, etc. in short, a lending institution and a borrower come to create a debt, which must be repaid along with interest.Generally Business loans are given for maximum tenor of 3 to 4 years.

Personal Loan

A personal loan is an amount of money you can borrow to use for a variety of purposes. For instance, you may use a personal loan to consolidate debt, pay for home renovations, or plan a dream wedding or Travelling. Personal loans can be offered by bank/NBFCs. The money you borrow must be repaid over time, with interest. Some lenders may also charge fees for personal loans. Personal loans are loans that can cover a number of personal expenses Personal loans can vary greatly when it comes to their interest rates, fees, amounts, and repayment terms.

DROPLINE OVERDRAFT (DOD)

With a Dropline Overdraft, a borrower can overdraw funds from their current account up to a certain limit, but at the same time the actual withdrawal limit of the overdraft reduces every month from the sanctioned limit. Thus, a borrower can withdraw more funds than those actually present in their account, up to a certain limit. But the maximum overdraft limit sanctioned will reduce every month. The interest is applicable only on the borrowed amount and not on the entire overdraft limit. Funds can be deposited anytime back into the account to reduce the outstanding balance. Let us understand this with an example. If you opt for a dropline overdraft facility with a tenure of 60 months and a total overdraft limit of Rs 10 lakh, then after the first month, the overdraft limit will reduce by 10,00000/60, which is Rs. 16,666. Hence the overdraft limit available to you for the next month will be Rs. 9,83,334. This reduction will continue for the next month until the last month of repayment. This is basic working of a dropline overdraft facility.

CASH CREDIT (CC)

Cash credit is referred to as short-term funding or loan for a company so that it can meet its working capital requirements. Cash credit is a sort of loan that is offered to businesses by financial institutions like banks. Banks offer cash credit to businesses based on the latter's credit history and financial stability. If you procure funds via cash credit, you can use it for various business-related purposes like expansion, purchasing plant and machinery, raw materials, hiring staff, debt consolidation, etc. If you want to avail of a Working Capital Loan like cash credit, you have to hypothecate your stocks and receivables. You can repay the loan amount in a tenure of up to 12 months that can be renewed. As a business, you can only borrow up to the sanctioned limit from the lender. You also need to submit collateral or security to avail of Cash Credit. Once you avail of the funds, it can instantly help you manage any cash crunch in your business activities. It is a short-term loan with a repayment period of up to 12 months. The interest rate is charged only on the amount withdrawn and not on the total sanctioned limit. You can withdraw money as many times as required from within the sanctioned limit. It is only offered if you provide collateral or security. If your business has a higher credit score and repayment history, you will be able to avail a higher limit via cash credit. Banks and financial institutions consider your business' turnover and volume while deciding the limit sanctioned. You can repay the amount borrowed via cash credit either monthly, quarterly, or half-yearly.

MSME

MSME loan is a kind of loan given to businesses that come under the category of micro, small or medium enterprises. NBFCs, banks and other financial institutions offer MSME loan to such type of businesses. Also, MSME loans are given by government with the help of various schemes. Some of the government schemes that come under MSME loan are Mudra loan & CGTMSE.