Loan types
Types of Bank Loans in India
Home, property, personal, vehicle, education, gold and business loans — secured vs unsecured, tenure and typical use.
Updated 30 September 2026 · 17 lenders trackedLowest home loan rate
7.10%
Indian Overseas Bank Home LoanWhat you need to know
Banks and NBFCs offer secured loans (backed by property, gold, a vehicle or deposits) and unsecured loans (based only on your income and credit). Secured loans are cheaper and longer; unsecured loans are faster but costlier. Home loans are the cheapest retail loans because they are secured by a house and have the longest tenure.
Main loan types
| Loan | Security | Tenure | Used for |
|---|---|---|---|
| Home loan | Secured by the house | Up to 30 years (35 at some lenders) | Buy, build, extend or renovate a home |
| Loan against property | Secured by residential/commercial property | Up to 15 – 20 years typically | Business or personal needs |
| Plot loan | Secured by the plot | Usually shorter than home loans | Buy a residential plot |
| Personal loan | Unsecured | Up to 5 – 7 years | Any personal need |
| Car / two-wheeler loan | Secured by the vehicle | Up to 7 / 5 years | Buy a vehicle |
| Education loan | Unsecured up to limits, secured above | Up to 15 years after moratorium | Higher studies |
| Gold loan | Secured by gold jewellery | Up to 3 years | Short-term needs |
| Business / MSME loan | Secured or unsecured | Varies | Working capital, machinery |
| Loan against FD / securities | Secured by deposits or shares/funds | Short | Liquidity without breaking investments |
Secured vs unsecured
Advantages
- Lower rates, longer tenure
- Higher amounts
- Tax benefits on home and education loans
Limitations
- Collateral at risk if you default
- More paperwork and valuation
- Unsecured loans cost more and are shorter
Frequently asked questions
Which loan is cheapest?
Home loans, followed by loans against deposits and gold loans at banks. Personal loans and credit cards cost the most.
For information and comparison only. Loan terms, rates and rules change — confirm with the lender and read the Key Facts Statement before borrowing.