Loan is always considered as a burden as one needs to repay it. Loans are not for keeps. How to take loan is something which most of us already know. One can either go to financial institution or a bank or even can ask a lender to lend some money. Rate of interest varies in all the types of borrowings or loan. Some loans can be given to the borrower completely on his/her credit worthiness. All this depends on the type of loan one is aiming to go forward for,
There are by and large three types of loans if speak about the outline matter. The first one is the secured loan. These kinds of loans are majorly borrowed from financial institutions and banks. Secured loans basically have the set criteria that most of us already know. The borrower will have to keep some of their securities as mortgage and then they can borrow the certain amount of loan on a fixed rate of interest. This rate of interest is decided by the lender. There is a fixed time span decided by the mutual decision of both lender and borrower and the borrower will have to repay the principal and the interest amount together within that time span. Failing which the security that the borrower kept to the lender will tend to lapse and lender will have the full authority over that security and borrower will have nothing what-so-ever right over that security.
Second type of loan is the unsecured loan. This loan is basically the loan that we take from our closed ones our friends. This loan completely depends on the mutual relations between the borrower and the lender. There is no set document signed between the borrower and the lender. It completely depends on the trust of word of mouth. No time span or rate of interest is usually involved in this kind of loan. Unsecured loan is majorly what is seen majorly between the relatives where there is trust and both borrower and lender are known to each other. Though, the amount of loan involved is usually not large in unsecured loans.
The third type of loan is the demand loan. These kinds of loans are usually provided by the unauthorized money lenders. The demand loan should not be preferred as there is no documentation involved in this loan all the things are fixed as mouth of words only. The lender will be the only decider of both rate of interest and time span. The lender at any point of time can demand the borrower to return back the loan amount without giving any prior notice to the borrower. The risk involved in this loan is very high as the borrower can never take any action against the lender if he switches the conditions in between the time span decided by him.
The kinds of loans should help the borrowers to choose wisely amongst all the loans that are available in the market. The borrower will opt from the above loans as per their needs and requirements.
Home Loans or Personal Loans: Loans For Your Dreams, Painting in The Canvas of Life
Many poles have large dreams painted in the canvas of their lives but only few manage to fulfill them. How can the other meet the gap so as to live their dreams. Their dreams can be fulfilled with the help of little loan that is now made available by all the financial institutions. Many dream of having their own house or car or some even think of sending their kids abroad or even throwing a lavish party for their kids. All these loans can be covered under home loans or personal loans. Though loans are always pain in heart till the time they are being repaid but these days with the flexibility in the loan deals make them more affordable and appealing.
Home loans as the name suggests are the loans that one take to buy a new home. Though security is required for these loans as well. But the flexibility allows the borrower to give their current job and job status as the loan security. The time span is decided by the borrower and the rate of interest is decided by the lender. Many financial institutions are trying to make it easier for the borrower to opt for these loans. These loans earlier use to take months but now can be sanctioned in a blink of the eye. This is one of greatest asset of these loans. Now the dreams won’t have to wait to get fulfilled.
The other loan for your dreams is the personal loan. Personal loans cover all the personal desires that one has. Many a times it is seen that many wish to send their kids abroad for higher studies. The studies in abroad are very expensive and the person will have kill their dreams but not any more as financial institutions have come up with the idea of personal loans. Through these loans the borrower can ask for any amount of money as loan and will have to keep some security under the mortgage to the lender. These personal loans can also be borrowed from the lender for marriage purposes. Everyone dream to throw a huge and lavish party when their kids get married and not many have the capacity to do that. This dream can also be fulfilled through personal loans. Personal loans cover all these aspect as well and the loan amount can be spent on any dream that one has ever seen or on any other desire as well. The lender will keep no account of where and when the money is being spent.
Home loans and personal loans are now a dream catcher for many and the flexibility they provide is even better. Home loans and personal loans not only fulfill the dreams of many eyes but also keep them secure and the relation that is being built between the borrower and lender through this is also for the keeps. Sharing your dreams with an unknown has never been an easy task but financial instituitions by proving home loans and personal loans makes it easy to share and care.
- The 5 W’s and 1 H of Loan, Insurance and Investment What do we mean by Loans, Insurance and Investments? Loan: A loan is money borrowed by a person, which is later reciprocated to the lender in installments. A lender is engaged to give a loan at a cost or interest provided to the borrower. There are three types of loans: secured loan that makes the [...]...