LOAN

It is a form of transaction where one party agrees upon certain conditions to give another party a certain amount of money with the expectation that they will get the entire amount back after a certain fixed period of time. Such transaction is always done on basis of a contract which has documented terms and conditions which both the parties have agreed to. One such condition being that the borrower should agree to pay interest rates on the sum of money as well as pay penalties if they fail to pay up on the agreed due date. Bank loans have become the most common today and people lend money from the bank to suffice their numerous needs.

HOME LOAN: A loan which assists individuals financially in buying a house is known as a home loan. Having a place which you can proudly call your home is not an easy decision to make especially given the steeping expenses. Buying a home involves huge sum of money and sometimes people use up their whole life’s earning in acquiring a place where they can dwell in their entire life and call it their own. A home loan is a secured loan taken from the bank against a house/property offered as security. The property offered as a security stands on agreement between the borrower and the bank that if the borrower fails to pay up the loan, the bank can retrieve the money by selling the property. You can find different types of home loans in the market suiting your specific needs.

CAR LOAN: Everyone dreams of buying a car but not everyone can afford it. A car loan is designed to financially assist those who wish to buy a car but step back due to financial constraints. It gives you the provision of not having to pay the entire sum of money at once but in installments in lieu of regular monthly payments and levied interest rates.

PERSONAL LOAN: It is a smaller type of loan taken by individuals for personal causes. There can be many reasons for taking a personal loan like, buying a car, to finance a vacation, pay off a debt etc. It is usually a short-term loan mostly for up to five years. There are two types of loans based on whether there is any security property involved or not: Secured and Unsecured Loan. If you as a borrower borrow the money from bank against any fixed/movable asset, it is called secured personal loan and if there is no such property involved, it is called as unsecured loan but in unsecured type he lender usually charges higher rates of interests.

LOAN AGAINST PROPERTY: This type of loan comes under category of secured loan where the borrower lends money by guarantying his property as a security which gives bank the right to sell it off to retrieve the lent amount in case the borrower fails to pay up. Also known as LAP, in simple words is taken against a property as a security. It is one of the best ways to arrange for money.