Types Of Individual Loans You Didn't Know Existed

When people think of loans, they usually imagine home loans, car loans, or personal loans. But the Indian financial landscape in 2025 offers a wide array of lesser-known individual loan types that serve specific needs—whether you’re funding a side hustle, relocating abroad, or recovering from a financial setback.

At Transparent Investment, our mission is to help you discover smart, personalized financial solutions you might not find at a traditional bank counter. In this article, we explore uncommon but valuable types of individual loans that could help you achieve your personal or professional goals.

Why it matters: One size doesn’t fit all

Every individual has different financial needs. You might not need a ₹25 lakh personal loan—maybe you need ₹50,000 for a certification course, or ₹5 lakh for relocation expenses.

Yet, most borrowers remain unaware of customized loan products that could serve their specific purposes with lower interest rates, easier eligibility, or unique features.

Let’s take a look at the most underrated types of individual loans available in India today.

1. Wedding loans

India spends billions on weddings each year. But not every family has instant access to lakhs of rupees in liquid cash.

Wedding loans are personal loans designed specifically for marriage-related expenses—venue booking, jewelry, attire, catering, and more.

Why it’s useful:

1. Customizable tenures

2. Fast disbursal for last-minute arrangements

3. No collateral required

Top providers: Tata Capital, HDFC Bank, Bajaj Finserv

2. Travel loans

Yes, you can finance your dream vacation without draining your savings. Travel loans offer short-term funding for domestic or international trips.

What they cover:

1. Flight tickets

2. Visa and insurance

3. Hotel bookings

4. Tour packages

Many lenders offer zero processing fees and pre-approved travel loan deals during holiday seasons.

Popular with: Solo travelers, honeymooners, students, and retired individuals

3. Education bridge loans

Unlike traditional student loans that are tied to academic institutes, education bridge loans help cover admission fees, entrance prep coaching, visa applications, or living expenses abroad before the actual loan disbursal.

Ideal for students heading overseas, or switching between courses.

Lenders: Avanse, InCred, Auxilo

4. Rental deposit loans

In metros like Mumbai or Bengaluru, rental deposits can go up to 10–12 months’ rent—a huge burden for young professionals.

Rental deposit loans are short-term loans that help you pay large security deposits without liquidating savings.

Features:

1. Quick disbursal

2. Low documentation

3. Repayment in EMIs over 6–12 months

Fintech leaders: NestAway, NoBroker, PaySense

5. Skill development loans

Whether you’re learning coding, digital marketing, or a vocational skill, skill development loans fund professional certification courses from recognized platforms like Coursera, upGrad, or Skill India.

These loans support non-traditional learners, including homemakers, freelancers, and upskilling professionals.

Key benefits:

1. Lower interest rates

2. No collateral required

3. Often partnered with institutes for direct payment

Government-backed option: NSDC (National Skill Development Corporation)

6. Lifestyle loans

From buying the latest smartphone to paying for cosmetic surgery, lifestyle loans are tailored for modern aspirations.

Popular among millennials and Gen Z, these loans finance:

1. Gadgets

2. Gym memberships

3. Fashion/luxury shopping

4. Health and wellness treatments

Buy Now, Pay Later (BNPL) models also fall under this category, offering short-term credit for e-commerce purchases.

7. Emergency medical loans

While health insurance may not cover all costs, emergency medical loans help bridge that gap—especially for sudden expenses like surgeries, dental treatments, or fertility procedures.

Why consider them:

1. Immediate approval (within 30 minutes with some apps)

2. Zero or low interest for first-time borrowers

3. No pre-closure charges

Top players: MoneyTap, EarlySalary, Tata Capital

8. Green loans (eco-loans)

An emerging category in 2025, green loans support individuals looking to invest in:

1. Solar panel installations

2. Electric vehicles (EVs)

3. Energy-efficient home upgrades

With government incentives and lower interest rates, green loans are the go-to for eco-conscious borrowers.

9. Relocation loans

Whether you’re moving for a job, business, or overseas opportunity, relocation loans help cover:

1. Moving costs

2. Packing and shipping

3. Advance rent

4. Travel and settlement expenses

Perfect for professionals heading to Tier-1 cities or abroad.

10. Debt consolidation loans

If you’re juggling multiple credit card dues or small loans, a debt consolidation loan helps combine them into one affordable EMI—with a single interest rate and due date.

This simplifies finances, reduces stress, and can improve your credit score over time.