A loan is a word which is known as lending money from one individual or entity to another. The loan comprises of the following three main components:
Principal amount or the money which is borrowed.
The rate of interest at which the loan has to be repaid.
The tenure or the time period or the duration for which the loan is availed.
The loans can be given by either an individual or an entity such as a bank. But one thing which is a must note is that any of the institutions look onto these three above mentioned components.
Category of loans
There are many types of loans which can be broadly categorised but they all come under just two categories: secured or unsecured. The Secured loans are the ones which have been backed by collateral or security in the forms of assets such as property, gold, fixed deposits and PF. The Unsecured Loans are those loans which are given by the bank or NBFC (Non-Banking Financial Company) without any security deposit and by purely relying on CIBIL score of the person along with the PERSONAL MATTERS track records.
Types of loans
There are many types of bank loans which are present in the market which is available. Some of the most common types of bank loans are as mentioned below:
PERSONAL MATTERS Loans
Benefits of bank loans
The following are the benefits of having bank loans:
There is financial flexibility which lets you meet the requirements which you have to meet financially. When you take a loan then you attain financial freedom and can have (materialistic) what you wanted to
It provides you with easy availability because most of the loans are easily available within a matter of a day or two.
The amount which you deserve would be provided to you after looking at your income and financial history.
The bank allows you to repay the loan in tenures which range from 12 months to 60 months or more.
There are many of the tax benefits which are offered.