Different Types Of Loans

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Different Types Of Loans
Loans mean lending of money from one individual
or entity to the others. Nowadays, online loans
are also available easily. Also, there are three
important components of a loan such as rate of
interest, borrowed or principal amount and
duration or tenure for which the specific loan is
availed.
So, it is considered to be one of the primary
financial products offered by any NBFC
(NonBanking Financial Company) or bank.
Loan Categories
The loans are generally categorized as unsecured
or secured. Specifically, the loans which are
backed by the security or collateral in the form
of assets such as gold, property, PF and fixed
deposits are referred to as secured loans.
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On the other hand, in case the NBFC or bank
agrees to provide loans without any security,
then, it becomes unsecured loans. So, it is
totally based on the personal track records and
CIBIL score.
Not only that, the loans are again classified on
the basis of the repayment period i.e. term loans
or revolving loans. Revolving loan refers to that
loan that can be spent, repaid and then, spent
again. One of its examples is a credit card. On
the other hand, the term loans are those which
are specifically paid off in EMI or equal monthly
installments and that too over a pre-agreed
period. Types Of Loans
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Some of the common types of loans availed by the
people include Gold Loan Business
Loan Personal Loan Education Loan
Car Loan Home Loan Benefits And Features of
Loans Financial Flexibility The loans
specifically allows you to meet a financial
expense or requirement that you incur in life.
So, you will get a certain degree of financial
freedom whenever you opt for a loan. Easily
Get Required Amount The specific amount that
you require as a loan can be disbursed to you
easily on the basis of your financial history as
well as income. Easy Availability Almost
all loan types are quickly approved in a short
time of 48 hours. But, the loan is dependent on
the income history of the borrower and the
collateral to be attached. Tax Benefits In
accordance with the Income Tax Act of 1961,
almost all loan types offer tax benefits that you
can avail.
Final Words So, all of these types of loan offers
a tenure of 12 to 60 months or sometimes even
more. But, again, the loan tenure depends on the
amount and bank.