Loans help individuals and businesses meet financial requirements by providing access to funds that are repaid over time with interest. They can be used for personal, professional, or asset-based needs. Loan products are offered by banks and financial institutions under regulated lending norms.
Borrowing should always be aligned with repayment capacity and loan terms mentioned in the agreement.
Understanding Loan Products
A loan is a financial arrangement where a lender provides a fixed amount to a borrower for a specific purpose and tenure. The borrower agrees to repay the principal along with applicable interest and charges as per the loan agreement.
Loan eligibility, interest rates, repayment tenure, and documentation depend on the lender’s policies and the borrower's credit profile.
Types of Loans Available
- Personal Loan: Unsecured loan for personal expenses.
- Home Loan: Loan for purchase, construction, or renovation of property.
- Loan Against Property: Secured loan where property is pledged as collateral.
- Business Loan: Designed for business expansion or working capital needs.
- Vehicle Loan: Loan for purchase of cars, two-wheelers, or commercial vehicles.
- Education Loan: Covers tuition fees and related educational expenses.
