The type of loan with the lowest interest rate in India can vary depending on various factors, such as the lender, loan amount, borrower’s credit score, and repayment tenure. However, in general, the following types of loans are known to have lower interest rates in India:
- Home loans: These are secured loans that are taken for the purpose of purchasing or constructing a house or apartment. Home loans generally have a lower interest rate as they are backed by collateral, which is the property being financed.
- Car loans: These are secured loans that are taken for purchasing a car. Car loans also have a lower interest rate compared to unsecured loans as the vehicle acts as collateral for the loan.
- Education loans: These are unsecured loans that are taken for financing higher education. Education loans generally have a lower interest rate as the government provides certain interest rate subsidies and tax benefits for education loans.
- Gold loans: These are secured loans that are taken by pledging gold as collateral. Gold loans generally have a lower interest rate as they are secured and the lender’s risk is lower.
- Secured personal loans: These are personal loans that are backed by collateral such as fixed deposits, mutual funds, or property. Secured personal loans generally have a lower interest rate than unsecured personal loans as the lender’s risk is lower.
It’s important to note that interest rates can vary widely based on the lender and other factors. Borrowers should compare interest rates and terms offered by different lenders before taking out a loan.