What are the Cheapest Loan Types in India?

Home loans and other secured loans are the least expensive loans in India. Although they have low interest rates, their use is limited. For instance, you can only get a home loan if you’re buying a house. The most affordable loan In India is a personal loan or credit card if you need money for an emergency. These two unsecured loans are both rapidly processed and disbursed. Additionally, they have affordable interest rates and flexible payback plans. In India, there are numerous different ways to borrow money. The most popular loans, however, are bank loans. They cost less and are safe. There are secured and unsecured loans available even from banks. Personal loans and credit card loans are unsecured loans, whereas mortgages, auto loans, and gold loans are secured loans.

Home Loan

Any person’s basic need is a home, although many people dream of possessing one. People often choose home loans because of the high cost of real estate. Customers can get home loans from banks, NBFCs, and housing finance companies (HFCs) for reasonable interest rates. The fact that Home Loan has one of the lowest interest rates in India is by far its most significant benefit. Home loan interest rates typically range from 7% to 9% annually and differ between lenders. As we previously stated, lower interest rates equate to cheaper monthly payments. Additionally, the loan amount varies from 75% to 90% of the total value of the property.

Additionally, a significant factor in deciding the ultimate interest rate is your credit score. Lower interest rates on home loans are possible with a high credit score. The size of the loan, where the property is located, its value, and any existing debts are additional variables that influence interest rates. In addition to all of this, lenders for home loans also have lax eligibility requirements that make it simple for people to obtain a loan.

Rate of Interest (in per annum) from various leading lenders : State Bank of India (8.05%-8.55%), Axis Bank (7.60% – 8.05%), ICICI Bank (8.40% – 9.45%), Bank Of Baroda (7.45% – 8.80%), LIC Housing Finance (8.00% – 9.25%), Bank Of India (6.90% – 8.75%), PNB Housing Finance (8.25% – 11.20%) and TATA Capital (7.75% onwards).

Gold Loan

The practise of exchanging money for gold is a long-standing one in our culture. However, today’s banks and NBFCs offer the appropriate loan amount against the gold jewellery and coins in a well-organized manner through a gold loan. Your gold is held securely in the locker, and you will receive your gold as soon as the debt is satisfied.

Rate of Interest (in per annum) from various leading lenders : Muthoot Finance (12.00% – 27.00%), ICICI Bank (10.00% – 19.76%), HDFC Bank (9.50% – 17.55%), Union Bank Of India (7.00% – 9.60%), Axis Bank (13.00%), Yes Bank (9.00% – 15.00%), Canara Bank (7.65%) and State Bank of India (7.50%).

Vehicle Loan

Four-wheeler and two-wheeler loan providers give borrowers the necessary loan amounts so they can purchase the motorcycle or car of their dreams. Although we cannot classify a car or motorcycle loan as a secured loan because of their declining value over time, both of them unquestionably rank among the most affordable loans available in India. For someone who wants to purchase a new car at reasonable interest rates, which typically run from 7% to 14% per year, a car loan might be a smart option. Additionally, the loan amount is between 85% and 90% of the car’s on-road cost.

Rate of Interest (in per annum) from various leading lenders : State Bank of India (7.20% – 7.90%), Bank Of Baroda ( 7% onwards), Punjab National Bank (6.50% Onwards), ICICI Bank (7.90% Onwards), J&K Bank (7.85% Onwards), Central Bank Of India (7.25% – 7.70%), Union Bank of India (7.80% – 7.90%) and Bank Of India (6.85% onwards).