A loan is a sum of money borrowed from the bank to assist for individual unplanned or planned events which occur in our day to day lives. The borrower of the money is expected to pay back the loan including the interest charged over the stipulated period. There are several types of loans depending on the requirements of the clients. Loans can either be secured or unsecured. An unsecured loan is the one borrowed by students and consist of small amounts of money while a secured loan is that one which comprises large sums of money required to buy a car, equipment or a house.
1000 loanis whereby the bank borrows your money to buy or build a house but the ownership of the house until the borrower completes his or her payments inform of installments. The clients are required to pay back the loan for a specified period by making monthly payments called installments. This term can be stretched up several years depending on the amount borrowed.
Another type of loan is the business investment which provides the borrower with capital to commence a business idea. The money lenders, as well as the banks, provides you with a certain amount of money which is agreed to be paid after a particular time. The amount may be borrowed to start a business venture or to boost an individual business which is already in operation.
Student loans are given to students who want to further their studies either in universities or colleges. The banks pay the fees for the student during the study, and on completion, the student is expected to repay the loan at very low-interest rates. The repayment mode is very flexible depending on the income of the student after clearing from school. To learn more about loans, go to http://www.youtube.com/watch?v=-98tdkCF-sY.
A car loan is also provided to the client who wishes to buy a new or used vehicle. The vehicle bought belongs to the bank up to the time when the consumer pays his or her last payment to the bank.
Other people also borrow personal loans. The amount of money borrowed depends on your savings and the ability to repay. Credit worthiness is usually required in this form of loans.
There are some criteria which need to be observed for one to qualify for a loan from any lender depending on the type of the loan. The eligibility of the borrower is very important when it comes to the borrowing. The financial records are checked to approve the lending. It is good to note the repayment date so that you prevent late payments,click to know more!