You are well aware of the types of loan which bank offers like home loan, education, car loan, and personal loan, but did you know that there different types of loan for a personal loan too. Not all banks necessarily have all these types, but most of them have a certain extent of these types of loan in India. Let's talk about them individually one at a time.

Unsecured Loan- A personal loan is also called an unsecured loan, as they don't need any collateral unlike home loans and car loans, where your home or car is considered as collateral and if you are not able to pay then the property or car can be seised. The unsecured loan is the most common type of personal loan. The interest for an unsecured loan is usually high because of the high risk that is involved in it.

Fixed rate personal Loan- There are two types of personal loans where the interest charged as different policy, one of them is the fixed rate personal loan. In this case, the interest for the respective loan amounts remains the same through the whole repayment duration.

Variable rate Loan- This is the second type to the previous point I mentioned. In this case, the interest rate can be changed according to the time duration of the loan repayment status. The loanee has the power to decide the interest rate, but most banks put a limit on how much lower the interest can go to.

Lines of Credit- The line of credit is associated with the moto of pay for only what you used and is a good option for paying recurring expenses like tuition fees, or medical expenses. The way it works is, for example, you have two lakhs limit on your line of credit, but you only used one lakhs, then you would have to pay interest on the amount of 1 lacs only plus you don't have to provide any collateral, so basically it's an unsecured loan.

Hidden Personal Loans- These include things like credit cards, cash advances and balance transfers.
Credit cards are kind of a personal loan only which is to be repaid just like your electricity bill or any other bill. Credit cards are useful for huge payments of when you temporarily don't have the needed amount.
Cash advances- This is extra money which you can borrow from your bank against your credit card, but use it in case of only extreme urgency as it has a very high-interest rate.
Balance transfer also benefits from having a credit card. Here you can transfer the outstanding amount from a higher interest rate credit card to a lower interest rate credit card. In my experience HDFC balance transfer, is a pretty good deal as they provide various offers to choose from.