Planning to take a collateral-based loan? The best way to start is by doing some research to help yourself find the best fit. In fact, R&D is the basic prerequisite for every type of loan. It helps you identify if your expectations are feasible or not, whether you’re eligible or not. In addition, doing research also helps you identify the potential lenders who might approve your loan. That being said, you can approaches you can try to avail a collateral loan.
Banks: First of all, you can approach your nearest nationalized banks to get a collateral loan. There are different types of banks in India but the primary ones are (1) the public-sector banks - those owned by the Indian government, (2) commercial banks - banks which are privately held by corporate groups etc. You can approach any of them as long as they are approved by RBI to avail a loan.
NBFCs: Secondly, you can approach any NBFC. NBFC stands for Non-Banking Financial Company which basically refers to institutions offering loans in India but are not banks. They can give loans but can’t offer any savings schemes or account. These are flexible with their debt products compared to banks.
Credit unions: You can also approach credit unions which basically refers to a union formed and registered by a group of people using their own money to offer loans in India.
Online lenders: Lastly, you can refer to online lenders who are basically startups that offer their services online. They don’t use their own money for lending but have tie-ups with different lenders.