Loan is one of the widely used sources of finance across the industries and there are following  types of loans in India. 

Home Loan 

Home Loans are taken by people for a variety of home-related purposes such as construction  of home, home renovation, home extension, buying of property or land, or payment of stamp  duties. Home loans comprise an adjustable or fixed interest rate and payment terms. 

Personal Loan  

Personal loan is granted by assessing various credentials of the borrower. Bank examines the  source of income and previous loan repayment history etc. This loan amount can be utilized  for any purpose you want. Rate of interest charged in these loans is much higher compared to  the other modes of loans. Loan processing fee charged by the banks is also very high. Personal loan is sanctioned against collateral security and some banks sanction without any security. 

Educational Loan  

The main purpose of this loan is enabling those who want to study further having no financial  assistance to pay their fees. No one should be away from school due to lack of money. There  are many loan schemes provided by different banks. Generally, rate of interest on these loans  is low when compared to the other loans in the market. 

Business Loan  

Business loans are granted to the existing business entities and start-up businesses. Based on  the criteria of the banks the complexity of getting these loans varies. Generally, these loans are  granted to the existing business people to expand their business whereas the start-ups are  granted these loans to initiate their business idea. Getting a loan for start-ups is much more difficult  than getting for expanding an existing business. 

Vehicle Loans 

Vehicle loan enables you to fulfill your dream of having a car or a bike. Vehicle loan does  not involve complex procedural requirements since it is a secured loan. Lender of the loan has the right to have the possession of the vehicle if there is any default in repayment of the loan. Loan  can be paid in EMI s of various plans.

Gold Loans 

This can be said as one of safest loans ever granted by banks and financial institutions. This is  the loan granted against gold. The rate of interest will vary depending on the trend of gold rates.  Lender has the right to receive his proceedings by selling the gold in auction at the time of default  made by the borrower. Loan can be repaid in EMIs. Rate of interest will be slightly higher than  the other loans in the market. 

Loans against PPF 

This can be said as one of the beneficial loans ever sanctioned. Because the process of  sanctioning the loan is very easy and the rate of interest is just 2% higher than actually what it  earns.  

Loan against Insurance Policies 

If you have an insurance policy then it is easier to get a loan against that policy. Depending upon  the type of the policy up to 80% of the surrender value of the policy can be taken as loan.  Insurance company itself gives you the loan against the policy issued by it. Otherwise, one can get  it sanctioned from the banks also. The repayment of loans is also very easy like any other loans. 

Agriculture / Crop loans 

India is a country where more than 60% of the population depend on agriculture for their  livelihood. Unfortunately, due to the erratic crop results farmers are lacking financial support  to continue their farming further. Agriculture loans enable them to get finance for various  agriculture operations. Rate of interest on these loans is slightly low compared to the other loans  in the market. 

Loans can be utilised for various things in today’s world. It can be used for funding a start-up  to buy appliances for your newly purchased house. 

Important links –

1. https://corporatefinanceinstitute.com/resources/knowledge/credit/education-loan/
2. https://economictimes.indiatimes.com/wealth/borrow/why-you-should-not-take-loan-against-ppf-account/articleshow/73084374.cms