Types of personal loans that are available in the market and which one is best for you
Published on : June 14, 2021

Expenses are a constant in our lives and they can come in different forms. Be it a home renovation, a security deposit for a rented apartment, education expenses , medical expenses, wedding expenses, family holiday, investment,  paying off credit card debts, they all involve a cash outflow. How do you fund the same if you are short on cash and cannot manage the expense all at once?

We always had specific loans for the big-ticket items like purchasing a Home or a   Vehicle . What about the other expenses that we are faced with but don’t know how to handle? The personal loan is a financial product that has been specifically designed to meet other unique needs of individuals. They have been tailored to meet the specific requirements of borrowers and gives them a new opportunity to access hassle-free finance.

What is a personal loan?

Broadly speaking, a personal loan is an unsecured loan that can be taken for any purpose. If you are an Indian citizen or resident, over the age of 21 and earning a monthly income of over Rs 30,000 you are eligible to apply for a personal loan. At LoanTap, you can borrow Rs 50,000 – Rs 10,00,000 and repay it over a tenure of six months to sixty months . The annual interest rate starts at 18%.

What are the types of personal loans available?

There are various types of personal loans available in the market including –

  • Home Renovation Loan
  • Rental Deposit Loan
  • Wedding Loan
  • Medical Loan
  • Education Loan
  • Advance Salary Loan
  • Credit Card Takeover Loan
  • Holiday Loan
  • EMI free loan
  • Personal Overdraft
  • Personal term Loan

Let us look at the main features of each of them. They are essentially the same but with some tweaks to meet a particular need of the borrower. You can either pick one of the tailormade options or go for the vanilla personal loan that you can put to any use.

Home Renovation Loan 

House Owner Loan commonly known as Home Renovation Loan  can be used  to meet your home renovation and repair expenses. The loan can be tailored to be spread over a long tenure and you can pay off your principal in equal instalments. There are no foreclosure charges if you prepay the loan after six months. The loan is disbursed within twenty-four hours.

Rental Deposit Loan

House owners charge an exorbitant  8-12 months rent as an upfront deposit in several cities. It can be quite a stretch to cough up that amount immediately. The rental deposit loan comes to the instant rescue of tenants. They can take a rental deposit loan where  the deposit is paid to the house owner directly. The tenant has to pay the interest component to LoanTap over the period of the lease agreement. The principal is repaid to LoanTap when the lease agreement is terminated. This is a convenient method of managing a big-ticket expense. The loan is disbursed within 24-36 hours. The process is simple and requires minimum documentation. Rental deposit loan is an extremely friendly loan that can be explored by tenants in a new city.

Wedding Loan

There will be multiple expenses associated with a traditional wedding. You can avail  a wedding loan that is tailored for this purpose. At LoanTap, you have an option to pay only the interest for the first three months and pay the rest in fixed EMIs over the tenure of the loan. There are no prepayment penalties after the first six months of servicing the loan regularly. This is a loan that is customized to make life easy for newlyweds.

Medical Loan 

All medical expenses are unfortunately not covered by Medical Insurance. An unforeseen medical emergency can be debilitating. At LoanTap, We offer a variety of medical loans customized to meet the exact requirement, Our medical loans are approved within 24 hours. As a customer-friendly policy, borrowers have an option to pay only the interest amount for the first three months followed by fixed EMI. Flexible repayment schemes and longer tenures are available.

Advance Salary Loan

This is a convenient financing option to manage the end of month cash crunch if an emergency crops up. If your net salary is over Rs 40,000 per month, LoanTap can offer you 2.5 times your salary up to a maximum of Rs 1,00,000 for a tenure of three to twelve months. This is paid off in equal monthly instalments across the chosen tenure. There are no prepayment charges if you foreclose after six months on our salary advance. A processing fee of Rs 2500 plus GST for loans up to Rs 50,000 and Rs 5000 plus GST for loans above Rs 50,000 is applicable.

Credit Card Takeover Loan

If you are bogged down with multiple credit card debts that you struggle to repay during the month, this loan is a lifesaver. You can take this loan from LoanTap and say goodbye to expensive credit card debts (demanding interest of  2.5% per month) at one go. You can streamline your monthly repayments by adjusting the tenure of the personal loan and prepay after six months or hold till the end of tenure. You can use the step-up option to enjoy three months of interest-only EMIs and the balance in fixed EMIs. This will help you to ensure that your credit score is not damaged.

Holiday Loan

If you want to go on that holiday you always planned for but put off due to cash constraints, here is a solution customised for you. A holiday loan from LoanTap allows you to plan that perfect vacation without worrying about the funds. You can pay interest only instalments for the first three months and fixed EMIs thereafter. The loan is processed within 24-36 hours with minimum documents. There is no need to put off that dream vacation anymore!

EMI free loan

By the sound of it,  the concept of an EMI free loan does sound fantastic!  You have the flexibility to pay only the interest component on a monthly basis. You can pay the principal every 3/6 months as a lump sum which will get adjusted against the principal outstanding and the interest will be recalculated. This helps you to manage your monthly cash outflow. You can have flexible principal repayment which makes the process hassle free and doesn’t impact the monthly budget.

Personal Overdraft

You can reap the benefits of an overdraft facility from LoanTap where you pay interest only on the amount you actually withdraw and not on the entire sanction credit limit. The loan sanction is easy involving minimum documents. Repayments and withdrawals are unrestricted.

Personal Loan

This is a standard personal loan that you can use for any purpose you need. The document requirement is minimal and the process is extremely convenient. You can prepay in part or full after six months with no penalties.


There are several types of personal loans available in the market. You can pick the one that suits your requirements the best. For further information, you can visit the LoanTap website and we will be more than happy to assist you in the loan selection process. Whatever be your financing need, the solution is just a LoanTap away!