There might be a misconception in your minds that Indian banks just offer home loans and car loans. However, there are many more loans that are offered by banks in India. The chief amongst them are Loans against Property, Education Loans, Business Loans, and also Credit Card Loans.
We will talk in brief about each of these loans.
These loans fall into the category of secured loans. As the name suggests, in 'Loans against Property', the buyer offers a guarantee or collateral to the bank in the form of his property. This property is security against the non-payment of the loan. Let there be no doubt that the borrower will still have the right of ownership, however, if he/she is unable to repay the borrower amount, then he/she can sell the property in order to repay the loan amount.
As can be imagined from the name, loans are offered on the credit card held by a person, and these are called credit card loans. Not all banks offer such a facility. What a bank does is that any purchase made on credit card that is above a certain pre-determined cost, is converted into a loan by the bank. There are various loan tenure options offered by the bank and the interest rates are dependant on the kind of credit card owned by the borrower.
There are various types of business loans offered by the banks:
People who own a business are constantly looking at making improvements and expansion with regards to their business. Many a times, business finance is required on an urgent basis, and therefore banks offer this lending facility, especially for small and medium businesses. This is because one gets a business credit loan with a very minimum amount of security or collateral.
There are a number of banks that cater to this particular requirement of the business. They offer loan options for the buying of business property.
Most banks offer a business overdraft loan that can be taken by a business against various investments. The one advantage of this loan is that you would not need to go through a liquidation of your precious investment, but still be able to meet your urgent financial needs and requirements.