Banks and Non-Banking Financial Companies (NBFCs) offer a wide spectrum of loans tailored to individual, commercial, and agricultural needs. Loans are broadly divided into two major categories: Secured (backed by collateral) and Unsecured (no collateral required).

Retail Financing

Unsecured Personal Loans

• Personal Loan:Multi-purpose financing used for medical emergencies, travel, wedding expenses, or debt consolidation.
• Consumer Durable Loan:Used to purchase electronics, household appliances, or furniture, often offered via low-cost or no-cost EMI schemes (widely offered by NBFCs).
• Instant / Micro Loans:Small-ticket digital loans disbursed rapidly via fintech apps and NBFCs for quick cash flow needs.

Property & Real Estate Loans (Secured)

• Home Loan:Long-tenure financing provided to buy, construct, or renovate a residential property.
• Plot / Land Purchase Loan: Granted specifically to acquire residential or commercial land.
• Loan Against Property (LAP):A high-value secured loan where an existing residential, commercial, or industrial property is pledged as collateral for personal or business needs.

Vehicle & Mobility Loans (Secured)

• Auto / Car Loan:Financing for new or pre-owned personal vehicles.
• Two-Wheeler Loan: Targeted financing for scooters and motorcycles (a major focus area for retail NBFCs).
• Commercial Vehicle Finance: Loans provided for heavy vehicles like trucks, buses, and tippers.

Specialized Retail Loans

• Education Loan:Covers tuition fees, accommodation, and living expenses for higher studies domestically or abroad.
• Gold Loan:Quick-disbursal secured loan where physical gold ornaments or coins are pledged.
• Loan Against Securities / FDs:Secured against liquid financial assets like Fixed Deposits, Mutual Funds, shares, or life insurance policies.

Business & Commercial Financing

Working Capital Loan: Short-term financing designed to fund daily operational expenses, inventory management, or accounts receivable. 

MSME / SME Business Loans: Collateral-free or secured business growth loans tailored for small-to-medium enterprises. 

Equipment & Machinery Finance: Loans for acquiring industrial tools, healthcare equipment, or machinery. 

Trade Finance Facilities (Primarily Commercial Banks):

Cash Credit (CC) / Bank Overdraft (OD): Credit limits allowing businesses to withdraw funds beyond their account balance. 

Letters of Credit (LC) & Bank Guarantees (BG): Non-fund-based trade credit facilities. 

Invoice Discounting / Factoring: Short-term borrowing based on unpaid client invoices.