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. -

(1) http://www.basunivesh.com/2013/05/29/different-types-ofloans-in-india-when-to-use-them/

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/
1 year
business

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
Post-dated cheques or
Standing orders to debit Standing orders to debit
from personal A/c
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

Minimum years in
service/ business

1 year

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%

1,00,000

1,50,000

3 years

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

Minimum years in
service/ business

1 year

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

1,20,000

1,50,000

3 years

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

1,00,000

60,000

Income
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

Loan Amount

----

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

- See more at: http://business.mapsofindia.com/banks-inindia/loans.html#sthash.6ujP8P9Q.dpuf