What Are the 4 Types of Loans? Compare Lending Types | Creditcares

Choosing the right financial product is the first step toward achieving your goals, whether you are buying a dream home or scaling a startup. While the market is filled with various names and brands, most financial instruments fall into a few primary categories. Understanding the 4 types of loans helps you compare different types of lending and select the one that offers the best value.

In 2026, the demand for high-ticket funding has surged, making specialized services like those offered at CreditCares essential. While many banks offer small consumer loans, our expertise lies in the “heavy hitters” of the financial world: Mortgage Loans and Business Loans.

1. Personal Loans (Unsecured Lending)

Personal loans are a popular form of unsecured lending where you don’t need to provide collateral.

• Purpose: Weddings, travel, or medical emergencies.

• Key Feature: High interest rates and shorter tenures (usually up to 5 years).

• Limitations: Because there is no security, the loan amount is typically capped at ₹25–40 Lakhs.

2. Mortgages (The CreditCares Speciality)

A mortgage or loan against property (LAP) is a secured loan where your real estate acts as collateral. This is one of the most powerful ways to access large amounts of capital.

• Purpose: Long-term wealth creation, buying property, or funding massive business overheads.

• Why CreditCares? We specialize in mortgage loans, securing you the lowest interest rates from 50+ partner banks. Since the loan is “secured,” you get the benefit of lower EMIs and tenures of up to 15–20 years.

3. Auto & Student Loans (Purpose-Specific Lending)

• Auto Loans: Specifically for purchasing vehicles. The car itself serves as collateral.

• Student Loans: Designed to fund higher education. These often have a “moratorium” period where you don’t pay until you graduate.

4. Business Loans (The Engine of Growth)

Business loans are designed for entrepreneurs and MSMEs to manage cash flow or invest in machinery.

• Purpose: Buying inventory, expanding offices, or hiring talent.

• CreditCares Advantage: We help businesses secure both secured and unsecured business loans from ₹10 Lakh to ₹10 Crore. We understand the specific business loan eligibility requirements for Indian SMEs in 2026.

Comparing Lending Options: Why Security Matters

When you compare different types of lending, the most important distinction is between secured and unsecured debt.

• Unsecured Loans (Personal/Credit Cards): Fast but expensive. In 2026, interest rates can exceed 15-18%.

• Secured Loans (Mortgages/LAP): Slower but highly efficient. Interest rates typically stay in the single digits (8.5% to 10%), and you can borrow up to 75% of your property’s value.

For anyone looking to consolidate debt or fund a significant life change, a loan against property from CreditCares provides the lowest “total cost of borrowing.”

Detailed Look: Mortgage vs. Business Loans

At CreditCares, we focus exclusively on these two pillars because they represent the most complex yet rewarding forms of credit.

The Mortgage Loan (LAP)

Commonly known as LAP, this allows you to unlock the “dead capital” sitting in your home or office.

• Residential LAP: High LTV (up to 70%).

• Commercial LAP: Ideal for office renovations or starting a second branch.

• Industrial LAP: Specialized funding for factory owners.

All Types of Business Loans

We handle the full spectrum of business loans, ensuring your cash flow never stops.

• Unsecured Business Loans: For quick working capital needs without pledging assets.

• Secured Business Loans: Using your machinery or property to get massive credit lines.

• MSME/SME Loans: Specifically for small-to-medium enterprises, often benefiting from government schemes.

Why Choose CreditCares?

Navigating the 2026 financial market is difficult without an expert. CreditCares is not just a broker; we are your strategic financial partner.

1. Direct Bank Connections: We work with SBI, HDFC, Bank of Baroda, and top NBFCs like Bajaj Finserv.

2. Specialization: We don’t do car or student loans. We are masters of Mortgage Loans and Business Loans.

3. Local Knowledge: If you are looking for a loan in Kolkata or anywhere in West Bengal, we understand the local property valuation norms and legalities better than national portals.

4. CIBIL Experts: If your score is holding you back, our team provides advice on business loans for low CIBIL scores.

Frequently Asked Questions (FAQ)

1. How much can I borrow through a mortgage loan with CreditCares?

The amount depends on your property value and income. Typically, we help clients secure loans from ₹10 Lakh to ₹50 Crore.

2. Is a business loan better than a mortgage for my company?

It depends. A business loan is faster but might have higher rates. A mortgage loan offers a longer tenure and lower interest, making it better for long-term investments.

3. Can I get a loan against my shop or office?

\Yes. CreditCares specializes in commercial LAP. We can help you mortgage your office, shop, or even an empty plot of land to fund your business.

4. What documents are mandatory for a business loan?

Usually, you need your 3 years of ITR, 12 months of bank statements, GST registration, and KYC documents. Our team provides a full checklist to make it easy.

5. Why do people choose CreditCares over going directly to a bank?

Banks only offer their own products. CreditCares compares 50+ lenders to find you the absolute lowest interest rate and highest loan amount. We save you from multiple branch visits and rejections.

6. Do I need to provide a guarantor for my business loan?

For unsecured loans, a co-applicant (usually a family member) might be required. For secured loans, the property itself acts as the guarantee.

7. Can I use a mortgage loan to pay off my credit card debt?

Yes! This is called Debt Consolidation. Using a low-interest mortgage loan to pay off 40% interest credit cards is a very smart financial move.

8. What is the minimum property value required for LAP?

While it varies, we generally assist with properties valued at ₹20 Lakh and above.

9. How long does the approval process take?

At CreditCares, we aim for an in-principle approval in 48 hours, with final disbursement usually taking 7–12 days.

10. What if my property papers are with another bank?

We can facilitate a Loan Takeover/Balance Transfer. We move your loan to a bank with a lower interest rate and even provide a “Top-up” loan for extra cash.

Conclusion: Take the Next Step with CreditCares

Whether you need a Business Loan to reach the next milestone or a Mortgage Loan to unlock your wealth, we are here to help. Don’t settle for the first offer you see.

Consult CreditCares Today to compare the best lending options available for you in 2026.