Loans confuse everyone — different tenures, rates, fees and rules for every type. This hub explains every major loan type in India, what it typically costs (indicative Aug 2026), who qualifies, and where to calculate your EMI. Rates are indicative; your final rate depends on CIBIL score, income and the bank's latest offer.
Loan types at a glance
| Loan Type | Typical Rate (Aug 2026, indicative) | Typical Tenure | Typical Amount | Calculate |
|---|---|---|---|---|
| Home Loan | 8.6–9.6% p.a. | Up to 30 years | Up to 75–90% of property value | EMI → |
| Personal Loan | 10.5–24% p.a. | 1–6 years | Up to ₹50 lakh (income-based) | EMI → |
| Car Loan | 8.7–9.7% p.a. | 1–7 years | Up to 90–100% of on-road price | EMI → |
| Education Loan | 8.1–10.5% p.a. | Up to 15 years | Full fees + living costs | EMI → |
| Gold Loan | 7.5–9.5% p.a. | Up to 3 years (rollover) | Up to 75–90% of gold value | EMI → |
| Business Loan | 9.5–14.5% p.a. | 1–10 years | ₹1 lakh–₹2 crore+ | EMI → |
| Loan Against Property | 9.0–12% p.a. | Up to 15 years | Up to 60–70% of property value | EMI → |
| Loan Against FD | FD rate + 1–2% | Up to FD tenure | Up to 90% of FD | EMI → |
| Two-Wheeler Loan | 9.5–13% p.a. | 1–4 years | Up to 95% of ex-showroom | EMI → |
Home Loan
For buying, building or renovating a house. Longest tenure (up to 30 years), lowest rates, and interest is the biggest cost — a 0.5% higher rate on ₹50 lakh for 20 years adds roughly ₹4–5 lakh to total interest. Compare at least 3 banks; PSU banks usually quote lower starting rates, private banks offer faster service and balance transfer. See HDFC, SBI, ICICI, Axis, Kotak, PNB, Bank of Baroda, Canara, Yes Bank, IDFC First.
Personal Loan
Unsecured — no collateral — so rates are higher and CIBIL matters a lot. Best for weddings, medical needs, travel, debt consolidation. Banks offer pre-approved loans to salary-account customers at lower rates. Quick tip: don't apply to many banks at once — every application hits your credit report.
Car Loan
New or used cars, secured by the vehicle. Tenure 1–7 years; used cars get higher rates (10–13%). Many banks offer 100% on-road funding during festival season — but that also means negative equity (you owe more than the car is worth) for the first year.
Education Loan
For studies in India or abroad. Interest rates are relatively low, and there's usually a moratorium — you don't repay while studying (interest may still accrue). SBI, PNB and other PSU banks offer flagship schemes with interest subsidies for some categories.
Gold Loan
Instant money against your gold jewellery — 75–90% of gold value, disbursed in minutes at banks. Rates are lower than personal loans (7.5–9.5%). But if you default, the bank auctions your gold — never borrow more than you can repay comfortably.
Business / MSME Loan
Working capital, expansion or equipment for businesses. Options: term loans, overdrafts, invoice financing, government schemes (MUDRA, CGTMSE guarantee). Self-employed borrowers need 1–2 years of ITR and bank statements.
Which loan should I take?
- Need a house → Home Loan (cheapest long-term).
- Need money fast, no collateral → Personal Loan (but shop for the lowest rate).
- Buying a vehicle → Car / Two-wheeler Loan.
- Higher studies → Education Loan (moratorium helps).
- Have gold at home → Gold Loan (cheaper than personal).
- Have an FD → Loan Against FD (rates just 1–2% above FD — cheapest of all).
Before anything: check your CIBIL score — 750+ unlocks the best rates. And always run the EMI calculator first so the EMI fits comfortably in your budget (ideally ≤ 40–50% of monthly income including all EMIs).
Frequently Asked Questions
A>Loan against FD (FD rate + 1–2%) and gold loans (~7.5–9.5%) are typically cheapest; home loans follow (8.6–9.6%). Personal loans are the most expensive (10.5–24%).
A>Most banks give 3–5× your annual income for personal loans (salaried), 75–90% of property value for home loans, and up to 60–90% of the collateral value for secured loans.
A>750+ gets you the best rates almost everywhere. Below 700 you'll pay 0.5–1.5% more or face rejection.
A>Usually: ID proof, address proof, last 3–6 months salary slips, 3–6 months bank statements, and 2 years ITR (self-employed).
A>EMI = P × r × (1+r)ⁿ / ((1+r)ⁿ − 1). Use our loan EMI calculator for any amount, rate and tenure.
🚀 Open the Tool