Personal Loans
A Personal Loan is an unsecured loan extended by a bank to a loan seeker towards any purpose like education expenses, wedding expenses, emergency cash, medical expenses, holiday expenses or any other reason. A personal loan can be extended as a salary transfer loan in which case, the salary needs to be transferred to the bank providing the loan. Personal loans where there are no such requirements of salary transfer are relatively more expensive in terms of interest rate.
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Credit Cards
A Credit Card is a plastic piece of card issued by banks and other financial institutions to individuals towards purchase of personal goods and services. Credit cards play an important role especially at retail establishments and at ecommerce stores as it provides convenience to the user to pay. Credit cards offer a number of privileges and benefits to customers in terms of discounts and miles/points redeemable for goodies/airline miles. Credit Card is the most expensive personal finance tool available for users and is most profitable for banks.
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Mortgage / Home Loan
Mortgage or Home Loans is a loan provided by banks or financial institutions towards the purchase of a property which could be in the form of apartment, villa, land or commercial unit. Buying a home is a dream for most individuals and this is a way for fulfilling that dream. Mortgages are secured loans for the banks as they have the right to take over the property in case the mortgage installments are not paid. Interest rates are relatively lower for home loans.
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Life Insurance
A Life Insurance policy is a way of replacing one’s financial income if the policyholder dies during the lifetime of the policy so that the dependents could be left with the insured amount. Death is a certain event in everyone’s life and it is important to ensure financial continuity to the dependents of the bread winner of the family. A life insurance policy that solely provides death benefit is called Term Insurance and is the most inexpensive option.
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