I always thought a personal loan is just one standard thing you take for emergencies or big expenses. But recently I saw ads for things like wedding loans, travel loans, and even gadget loans. Are these all just marketing names or do they actually differ in terms of features, rates, or eligibility?
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Types of different personal loans-
- General Personal Loan:
This is the standard all-purpose loan. You can use it for anything—no questions asked. It’s based purely on your credit score, income, and repayment capacity. - Wedding Loan:
Specifically offered to cover wedding expenses. Same structure as a personal loan, but sometimes banks offer special deals or festive discounts during the wedding season. - Travel Loan:
Aimed at covering travel expenses, especially for international trips. Some lenders partner with travel agencies and offer these with quick approval and flexible EMIs. - Medical Emergency Loan:
Fast-disbursal loans for sudden medical expenses. Some fintech platforms can approve and credit within minutes, especially if it’s linked to a health emergency. - Debt Consolidation Loan:
If you have multiple high-interest debts (like credit cards), you can take a personal loan to consolidate them into one EMI at a lower rate. - Education Loan (Unsecured):
While student loans are generally separate and come with their own rules, some banks offer unsecured personal loans for short-term education or upskilling programs. - Consumer Durable or Gadget Loan:
These are typically short-term loans for buying electronics like phones, laptops, or appliances. Often offered at 0% interest or no-cost EMI through partners like Flipkart or Amazon. - Home Renovation Loan:
Similar to a personal loan but targeted for interior work, furniture, or repairs. Some banks offer this under personal loans but might give better terms if it’s home-related.