LOANS

SIDDESH G S

Meaning of loan

The act of giving money, property or other material goods to a another party in exchange for future repayment of the principal amount along with interest or other finance charges is called loan.

DIFFERENT TYPES OF LOANS

TYPESOF

LOANS

Term Loan

Personal

Loan

HomeLoan

PropertyLoan

VehicleLoan

Education Loan

Gold Loan

Business Loan

PolicyLoan

agricultural loans

TERM LOANS

A term loan is simply a loan provided for business purposes that needs to be paid back within a specified time frame.

TermClassification

Short Term

(1 year)

Medium Term

(1-3 years)

Long Term

(<3years)

PERSONAL LOAN

Personal loans are intended to meet any kind of personal expenses.The loan can be for any of the following purposes:-

Family functions Meeting travel expenses in India or

abroad Marriage expenses of children Buying a laptop / pc Interior decoration of house

PROPERTY LOAN The individual

takes the loan by mortgaging the house property. It is a Secured loan.

• One of the cheapest retail loans after home loans; usually about 12%-16%.

• Since the rate of interest is lower, frequently Equated Monthly Installments (EMI).

• Maximum loan eligibility is determined primarily by the value of the property and income.

EDUCATION/STUDENT LOAN

The purpose of education loan is to provide better educational opportunity to bright and financially backward students and brings within their reach all types of education.

A. Tuition fees payable to college B. Hostel feesC. Examination/ library / laboratory feesD. Purchase of books/equipment/instruments/uniformsE. Travel expensesF. Purchase of computer ,if it is necessary for completion of course.G. Any other expenses.

VEHICLE LOAN

Vehicle loans particularly car loans are offered by all the banks in the country. the terms and conditions of vehicle loans vary from bank to bank.

GOLD LOAN It is a form of debt

financing whereby a potential gold producer borrows gold from a lending institution, sells the gold on the open market, uses the cash for mine development, then pays back the gold from actual mine production.

POLICY LOAN

A loan issued by an insurance company that uses the cash value of a person's life insurance policy as collateral. 

Traditionally, these were loans issued at a very low interest rate, but that is no longer universally true.

HOUSING LOANS. The basic needs of a human include,

food, cloth, water, shelter and security. Housing is an important need. Banks provide different types of loans for building house known as HOUSING LOANS.

Home purchase loan- for purchase a new house.

Home construction loan- construction of a house

BUSINESS LOAN

Businesses require an adequate amount of capital to fund startup expenses or pay for expansions.

A business loan is debt, that the company is obligated to repay according to the loan’s terms and conditions. 

As such, companies take out business loans to gain the financial assistance they need.

AGRICULTURAL LOANS It is always said that,

most of the people India are depending agriculture. So, it is very important to develop the rural sector. In order to fulfill that banks provides various credit facilities to the farmers.Purchase of asset like farm machinery, bullocks, sheep etc.

Creation of assets such as poultry, dairy development etc.For rural activities under agriculture, plantation, fisheries etc.

PROCESS OF GRANTING A LOAN

Loan application

Credit Information Bureau (India) Limited

Submission of Required documents

Approval of loan

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