Talk to a banker and find out what are the purposes for which people in urban areas generally take loans?

There are varieties of reasons for which people take a loan and also there are different types of loans. There are housing loan, car loan, gold loan, education loan and small business loans. In urban areas, people are mostly with a high standard of living, therefore, they concentrate more on their welfare activities and further betterment of life. For increasing the way of living, there is a need for the fund to be raised. There are different types of loans which are raised by urban people.

EDUCATIONAL LOAN:

Educational loans are being advanced to the students who are pursuing their higher education. These are provided to only those students who are really not in a condition to raise the fund for pursuing higher education.

• Documents required

It requires admission in any University and income proof of parents. Immoveable property documents in some cases

HOME LOANS

These loans are taken by the people to build a house for them. These loans help the people to raise a huge amount of fund.

• Documents required

Salaried employees will be required to present their salary certificate, other documents and other property required documents. Self-employed people will be required to submit the other documents and property documents of specific value.

CAR LOAN

The finance procured for buying either a new or a used car is known as a car loan. A car loan is one of the complex loan products in India as car dealers tend to include various discounts offered by car manufacturers or lenders (banks and other financial institutions) in the interest rate offered to the buyer.

• Documents required

Income proof and proof of original address is the mainly required documents for the advancement of the car loan.

GOLD LOAN

A gold loan helps in achieving the requirement of finance through the precious asset that otherwise just lies under lock and key.

• Documents required

The borrower needs to furnish only the KYC (Know Your Customer) documents. This comprises of Identity proof and address proof.

These are the most sources used by the people in urban areas. But there are further different types of loans which are used the urban people.