#1
16th February 2016, 04:28 PM
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Type of loans
Hello sir I am preparing for the bank exams so I want to know the type of loans offers by various banks in India so please provide me information about the same.
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#2
17th February 2016, 08:02 AM
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Re: Type of loans
A loan is a debt provided by an entity (organization or individual) to another entity at an interest rate, and which specifies, among other things, the principal amount, interest rate, and date of repayment. Types of Bank Loans Offered by Banks in India 1. Home Loan Home Loans are taken by people for a variety of home-related purposes such as construction of home, home renovation, home extension, buying of property or land, or payment of stamp duties. Some types of home loans are mentioned below: Home Purchase Loan Land Purchase Loan Home Construction Loan Home Extension Loan Home Renovation Loan Stamp Duty Loan NRI Home Loans Loan Against Property 2. Personal Loan This type of loan is given to individuals after accessing their credentials based on their profession or business, or any other sources of income. 3. Business Loan This type of loan is provided to either existing businesses or those venturing into new business For existing businesses, loan is provided in the following ways: Term loans – Amount provided for a fixed tenure at the applicable interest rate: three years for short term loan and 10-15 years for long term loans. Bank overdraft limits – Ability to withdraw more money than what is deposited. Bill Discounting – Short-term borrowing used to improve a company's working capital and cash flow position. 4. Education Loan Required by and provided to students who want to pursue higher education in resident country or abroad. Students should have an admission offer from an institution before they apply for an education loan. 5. Gold Loan Gold loan is imparted only on providing gold as security to a bank or any other lending institution. It is considered as one of the safest methods as the loan amount is provided on the basis of the security submitted. 6. Vehicle/ Car Loan Compared to other loans, it is easier and simpler to take vehicle loans. 7. Loan against Insurance Policy Any individual having an insurance policy can take loan against it from the insurance company |
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