What Is Loan – In the coming days, you must have heard people mentioning about taking a loan to fulfill some of their needs. Whenever the thought of loan comes, then the picture of banks definitely emerges in the mind. And why not, in today’s time if you want a loan then you have to go to the banks only.
If the loan is understood in easy language, then it can be any thing, but mainly money is understood in it, it is taken from some other person, while returning it, along with the principal amount, interest is also paid. have to return
Where in earlier times people used to take loans from big moneylenders or lala people to fulfill their needs, in today’s era banks and many government and private financial companies have made this work very easy. For this, they have to apply for a loan in the bank or any finance companies and on the approval of the application, they get the loan amount, which they have to return along with interest in Monthly Installments. Let us know in detail in disclosure.in what is a loan after all. what is loan, what is loan in simple words, types of loan, what is loan in ENGLISH, bank loan meaning, what is loan financing, types of loans in bank, example of loan
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What is Loan?
Loan makes our life easy. In today’s time, the direct connection of the loan is with the banks. This is probably because banks are the only financial institutions that provide you loans with interest. At the same time, they provide you loans soon in a very safe and secure way.If you have never taken a loan then you probably do not know much about its importance.
Because when there is a great need of money, such as for the treatment of a major disease, for getting children married, for building your house or for the education of your children, then in such places loans are the only support. Because it is very difficult to have such a huge amount with anyone, whether it is a friend or relative, such a large amount cannot be demanded from them. Now the only way left is to take a loan from the bank.
Loans are a very useful thing in times of need, whereas if you are unable to return it then it is best to stay away from it.
what is definition of Loan
When a company or a person takes a loan from a bank or private finance agency to fulfill any of his personal needs, which he has to repay with some interest to the lender within the stipulated time frame, then we call it a loan. By the way, there are many types of loans available for different works, such as if someone wants to build a house, then he should take a home loan and if a person needs a loan to fulfill his personal needs, then there is a personal loan for him. Similarly, if a person takes a loan for the higher education of his child, then this type of loan is called Education Loan.
Types of Loan
Today we will discuss the various types of loans given by Indian banks. A person needs a loan when his need cannot be fulfilled by the money earned by himself. Various banks like- PNB, SBI, HDFC, Axis bank, Bank of India etc. Provides you loan as per your requirement. Today we will discuss about how to take loan, types of loan, interest on loan, how to get loan, what is loan, home loan, personal loan, property loan, car loan etc.
- Home Loan
- Personal Loan
- Gold Loan
- Loan against Securities
- Property Loan
- Education Loan
- Vehicle or Car Loan
- Corporate Loan
Home Loan
Own home is every person’s dream. It provides financial security, relief in income tax, support system in emergency and the convenience of living as per your choice.
Banks or non-banking finance companies (NBFCs) give you long-term loans if you do not have the funds to buy a house. By paying a fixed amount in the form of monthly installments to the bank or NBFC, you repay the principal amount and interest of the loan over a period of 10, 20 or 30 years.
This is what is called a home loan.
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Personal Loan
Personal loan is an unsecured credit, which is provided by financial institutions based on the criteria like employment, repayment capacity, income level, profession and credit history of the borrower. Personal loan, also known as customer loan, is a multi purpose loan. Which you can use to fulfill any of your urgent needs.
Gold Loan
Gold loan is a type of secured loan which an individual or borrower takes from banks or financial institutions against gold ornaments, the loan amount offered by the lenders is usually a fixed percentage of the value of gold. Borrowers can repay the loan on monthly installment basis. And when the borrowers repay the entire loan amount with interest, they get their gold back.
Just like there are restrictions on home loan, car loan or other secured loan but there are no restrictions in gold loan. You can use the gold loan for your children’s education, marriage, family vacation, etc. Many financial institutions and nationalized banks in India provide gold loans at affordable interest rates.
Loan Against Securities
Sometimes in times of emergency, we need money immediately. In such a time, instead of selling your investment, taking a loan against securities is a better option. Although the process of Loan Against Securities is a bit slow, but still through this you can take a loan at affordable interest rates.
Any type of securities can be pledged to raise funds, such as shares, equity or debt mutual funds, insurance policies and bonds. It is very useful in times when there is an urgent need of cash for any personal or business related needs. Loan Against Share (LAS) is a very popular method for short and long term loans.
Property Loan
You can take a loan by mortgaging your house or any residential or commercial property.
There will be trouble in taking loan on plot or vacant land.
Since you are now pledging something to the bank, the bank may refuse to give you a personal loan, but will be ready to give a property loan. Note that personal loan is an unsecured loan.
Because a property loan is a secured loan, your interest rate may be lower than a personal loan.
You do not need to sell the property. Note that you have to pay the loan. Otherwise the bank will sell your property and recover its loan.
Education Loan
It is not in the luck of every meritorious student to be able to study from the desired institute. If someone wants to study from Oxford University, then he can face the problem of money. Not everyone comes from Ambani’s family.
The fee would be so much that the thought of going there to study would be like making a fancy casserole. In such a situation, he can apply for education loan in the bank. The bank ensures the repayment of the education loan before giving it. It has been observed that loans are given to only those students who have the ability to repay it.
But how will their ability be tested? Either their parent’s salary will be looked at or which university is the student going to take the loan from? Will he earn by studying there or not? What is the ratio of campus selection there? After seeing all this, the bank approves the loan. After completing the studies, the student can do the repayment.
A guarantor is required to take a loan. The guarantor can be the guardian or relative of the borrower. At present 11.15% p.a. for SBI student loan above 7.50 lac. and 10.85% p.a. for 7.50 lacs. The interest rate is charging.
Vehicle or Car Loan
Car Loan is a loan that is taken by a bank or financial institution on EMI for a fixed time period for the car. This loan is given by many government banks, private banks, non-banking finance companies across the country on car loans on easy monthly installments.
Lending companies offer loans on both new and used cars, with interest rates between 9.25 -13.75 per cent for new cars, while interest rates on used cars range between 12.50 and 17.50 per cent.
Usually this loan is financed up to 80-90 percent of the cost of the car, rather some banks and non-banking finance companies finance the car up to 100 percent. It can be ex showroom price or on road price.
Corporate Loan
Like- Personal Loan, Home Loan, Business Loan, Gold Loan, Property Loan, Project Loan, similarly Corporate Loan is also a type of loan. This loan is not an ordinary loan, the bank provides this loan to the big businessmen of India like Vijay Mallya, Ambani, Tata Birla, it is called corporate loan.
But this loan is available only to billionaires, it is wrong, yes but it is not easy to get this loan either. To get this loan or any loan, it is very important to follow the terms and conditions of the bank.
Benefits of Loan
- Having Financial Flexibility: Loans provide you financial flexibility. It provides you financial help in your time of need. On the other hand, by taking a loan, it also provides you some degree of financial freedom and also handles your everyday expenses properly, while not moving your planned budget here and there.
- Easy availability: All types of loans are mostly approved within 48 hours, provided you have already submitted all the required documents. So they can be easily obtained.
- Received the amount needed: On the basis of your income and financial history, you get the money you need.
- Having a Convenient Tenure: While taking the loans, you can choose the time frame within which you can repay the loan. Most of the time, you get loans from 12 months to 60 months.
- Benefits in Tax Benefits: According to the Income Tax Act of 1961, you get the facility of tax benefits in almost all types of loans.
Conclusion
Friends, in today’s article, you know about what is loan, what is loan in simple words, types of loan, how did you like this post of ours, please tell by commenting as well as if you have any question or suggestion then through comment Can tell but thank you for visiting www.expressmorning.online…
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