Meaning of Loan in India
What is loan ? Friends loan is money taken by a person or company from any bank or financial institution to fulfill his personal needs. In which we pay back that money with interest. In simple language, loan is said to be the amount that we have taken money from someone at interest for a certain time and have to repay it on time. These are a type of loan, so the lender has to repay it within a certain time. In the loan, the interest on the loan is fixed by the lender, which has to be given back to the borrower. Loans are given by an individual or an institution to a person on its own terms. I am telling you below in the information about the types of loans.
What are the Types of bank loan in India?
Friends loans are of 2 types. 1. Open Ended loan and 2. Close Ended loan
- Open Ended loan: – In this type of loan, all those loans come, for which there is no fixed time period to repay. Like credit card money person pays according to himself. This type of loan is called open ended loan. 2. Close Ended Loan: – In this type of loan, the time period is fixed. When a person takes a close ended loan, it is already told by a bank or institution to the person that you have to repay this loan in 2 years or 5 years. In this type of loan, the person is given complete information over time by adding interest on the principal amount. The turn in this type of loan is fixed. example of close ended loan.
1. Bank loan
2. Home loan
3. Bike loan
4. Car loan
5. Land loan
6. Animal loan
7. Construction loan
8. Personal loan
9. Salary loan
What are the types of loan in Bank
There are 2 types of loans. 1. Secure loan 2. unsecured loan
- Secure loan: – What is a secure loan? When a person takes a loan from any institution or bank and if he has to give any kind of security, then it is called a secure loan. These are the loans for which you have to give what kind of security to take. This is done because if the loan taken by the person is not returned due to some reason, then in this situation the bank can sell the security given by the person and recover the money. Example of secure loan: -home loan, car loan, gold loan.
2. Unsecured loan: – In this type of loan, no security is given by the person to the bank or to the institution. But before giving unsecured loan, any bank gets all the information of the person like :- rating, cibil score, bank statement, ITR gets all the information. And only when the information is correct, an unsecured loan is given by the bank to a person. The unsecured loan depends on the goodwill and cibil of the individual.
Types of Loan in India With Examples
Different types of loans are given by the bank in India. In India, about 10 to 12 types of loans are given by the bank, but according to the bank, the process and rate of interest of all these loans are different. There are also some finance companies in India who give loans but they do not give loans without security and their rate of interest is also high. Let us know how many types of loans the bank gives in India.
1. Personal loan: – Not every person can meet all the requirements in his life, such as wedding expenses, medical expenses, you can take a personal loan to meet these expenses. More interest is charged by the bank on personal.
2. Gold loan: – You can take this loan by mortgaging it with the bank of gold. Less interest is given by the bank on gold loan. Many finance companies also give loans on gold.
3. Property loan: – In this type of loan, you are given a loan by the bank by mortgaging your asset with the bank. In this loan, interest is given less by the bank.
4. Home loan: – This type of loan is used to build a house. If you have land to build a house, then you can easily get a home loan from the bank.
5. Education loan: – If you do not have enough money to study then you can take education loan.
6. Vehicle loan: – Loan taken on vehicles is called vehicle loan.
7. Corporate loan: – This type of loan is taken by big businessmen whose turn-over is of crores in the year. This loan is given by the bank by looking at their balance sheet and turn-over.
8. Share loan: – Some bank gives you share loan to buy shares. It depends on the bank on which shares it will give loan.
9. Project loan: – This type of loan is not easily available. Almost every bank in India gives this type of loan. But due to lack of knowledge among people, they do not take loans.
10. Business loan :- Loan taken for business is called business loan.
11. Fixed deposit: – You can take this loan on your FD.