While home loan, car loan and personal loan are some of the loans that we know, finance companies offer a far more variety of loans. Let us have a look at five of the most uncommon loans offered by finance companies.
Loans can be taken for a variety of reasons, like buying a commercial vehicle, remodelling your home, buying a new home, paying wedding expenses, etc. People usually take a vehicle loan, personal loan or home loan for the reasons mentioned above. However, the finance companies have advanced substantially, and they now offer services to cater to specific requirements of the customers.
As a result, many different types of loans are now offered by financial services company. While we may know the common ones, it is important to know all the different types of loan products that they offer to choose better. Thus, we have created a list of 5 different loans offered by the finance companies.
- Gold Loan
The gold loan allows you to borrow money from a lender against gold. Many of the finance companies offer this type of loan at excellent rates. People usually take this loan in case of a financial emergency. Rather than keeping the gold idle at home or bank locker, loan against gold is an excellent way to use your gold to meet sudden expenses.
- Commercial Vehicle Loan
Many businesses require a variety of vehicles, like trucks, buses, etc. Some of them only need a few of them while others require a large fleet. However, paying for the commercial vehicles in full is not something many of the businesses can do. Thus, a commercial vehicle loan can be an excellent choice in such a situation. With this type of loan, the borrower needs to make a down-payment and then pay the remaining amount in the form of EMI.
- Digital Finance
E-commerce is a rapidly expanding segment in India and as an e-commerce business owner, you need a free flow of cash to keep the business running and think about its expansion. Some of the NBFCs offer digital finance services which are exclusively designed for such customers, where they provide a working capital loan to take care of day to day financial needs. Some NBFCs also collaborate with e-commerce portal owners, fin-tech companies, aggregators, etc. to provide finance to their merchants. These loans usually come with features, like quick approval, minimal documentation and easy payment to merchants.
- Loan-Against Securities
Apart from providing you with excellent returns, your investment in shares and mutual funds can also serve an additional purpose- that of providing you with a loan at times of need. Yes, finance companies offer loan against such securities where you are required to keep these securities as collateral to borrow money from the lender. This eliminates the need to sell your securities in case of an emergency and continue to maintain your portfolio.
- Healthcare Finance
Just like businessmen, doctors and medical professionals also need to expand their infrastructure, invest in newer technologies, equipment, staff, etc. to offer best of medical services to their patients. A healthcare finance will provide medical professionals with the finance that they need for all their professional needs. With excellent interest rates, these loans offer a variety of benefits as compared to a personal loan.
As you can see, the finance companies now offer a full gamut of loan products as per the specific needs of the customers to offer enhanced convenience. If you are looking for a loan, make sure that you browse the options mentioned above, as well as they, might be a much better option as compared to the commonly known loan choices.