Group of loans
Loans could be broadly categorised as secured or unsecured. Loans which can be supported by security or safety by means of assets like home, silver, fixed deposits and PF among others are secured finance. In the event that bank or NBFC agrees to provide loans without protection and solely according to CIBIL rating and individual track documents, it becomes quick unsecured loans.
Revolving identifies that loan that may be spent, repaid and invested once again. Credit cards is a typical example of this. Therefore the loans reduced in equal monthly payments (EMI) over a pre-agreed duration are called term loans.
Kinds of loans
The typical kinds of loans that individuals avail are:
Mortgage Loan Auto Loan Education Loan Personal Loan Company Loan Gold Loan
Essential Ideas of that loan
Earnings: Lenders main concern is the payment capability. So, fulfilling the bank’s earnings requirement is considered the most crucial requirements for a loan applicant. Continue reading “Loans may also be categorized based on payment period – revolving loans or term loans.”