Banking Awareness : Types of Loans inwards India
A secured loan is i where the borrower provides a for sure holding or asset equally collateral against the loan. The top dog status of these loans is that if the loan remains unpaid, the banking corporation has the correct to work the Collateral security.
Meaning of Collateral : valuable holding owned past times someone who wants to borrow money, that they concord volition acquire the holding of the banking corporation who lends the coin if the debt is non paid dorsum
Unsecured Loan has no collateral as well as thence ascendance higher involvement rates. These include credit cards, credit facilities such equally lines of credit, corporate bonds & Bank overdrafts.
Mortgage loans that are provided past times commercial banks are like to secured loans but are used specifically to purchase existent estate holding for commercial purposes. If client fails to pay loan as well as so banking corporation has correct to work the holding inwards whatever way.
Home loans which tin hold upwards helpful to y’all inwards buying a property. Home loans tin hold upwards of many types :
- Loan for the world purchase
- Loan for repairing as well as extension of your home
- Loan for edifice a home
Personal Loans are meant to run into the personal needs of an individual. People tin work this coin for anything they want.
Vehicle Loan or to hold upwards to a greater extent than specific machine loans fulfills your dream of having a machine or bike. This loan is a secured loan.
This loan provides meliorate written report opportunities for the students who are financially backward nether priority sector written report inwards Republic of Republic of India upwards to Rs. 10 lakhs as well as unusual upto Rs. xx lakhs tin hold upwards given.
Note : There is no postulate of Margin, collateral safety as well as tertiary political party guarantee loan upto iv lakhs.
The easiest as well as fastest i to acquire loan is aureate loan. Earlier when aureate rates were increasing at an exponential rate, this loan was the most popular.
There are dissimilar types of loans offered past times banks for the farmers which tin assist them inwards their agriculture practices. They tin purchase seeds, insecticides, tractors as well as other equipment needed for agriculture.
KCC (Kisan Credit Card)
KCC started inwards 1998-99 past times authorities of India, RBI, NABARD. It aims to render adequate as well as timely short-term credit needs of farmers during the cropping season.
Eligibility : Individual
Repayment Period : Within a maximum of 12 months.
Collateral Security : Registered mortage of the world inwards example loan is to a greater extent than than Rs. 100000 as well as hypothecation of crops to hold upwards raised.
KCC allows farmers to conduct keep cash credit facilities without going through time-consuming banking corporation credit screening physical care for repeatedly. Repayment tin hold upwards rescheduled if in that place is a bad crop flavor as well as extensions are offered upto iv years.
Insurance Under KCC
KCC holders are covered past times a personal accident insurance. This embrace is available when the individual enters the scheme. The embrace is equally follows :
Death : 50,000
Disability : 25,000
Max. historic menses to acquire inwards : seventy years
Loan against Insurance Policy
If y’all ain an insurance policy y’all tin apply for loan. The policies which conduct keep completed its iii years are alone eligible for loan.
Loan against Bank FDs
If y’all conduct keep a fixed deposit inwards banking corporation y’all tin besides apply for loan against fixed deposit. The charge per unit of measurement of involvement y’all pay for this amount is a fighting higher than the involvement paid past times the banking corporation for the fixed deposit.
Overdraft is a physical care for of requesting for loans from banks. This way the customers withdraws to a greater extent than coin than he has deposited from whatever detail bank.
Cash Credit is the payment done past times the banking corporation to the customers inwards advance. This facility allows the borrowers to borrow a for sure amount of coin from bank. Securities are provided past times the borrower to the bank.
Loan against Shares as well as Mutual Funds
Most of the people besides acquaint their shares as well as usual funds to the banks for having loan. The banks render loans of amount lesser than the full amount inwards the share.
Reverse Mortgage Loan (RML)
Reverse mortgage loan enables a senior citizen i.e., above the historic menses of lx years to avail of periodical payments from a lender against the mortgage of his / her household spell remaining the possessor as well as occupying the house.
It is a type of brusk term loan, typically taken out for a menses of ii weeks to iii years for pending the organization of larger or longer term financing.
Consumer Durable Loan
It is an installment loan to private for a specified total of coin towards the purchase of consumer durable products.
That’s all for at i time friends. In our side past times side lesson, nosotros shall larn most around other Banking Awareness topic, Priority Sector Lending. Happy Reading 🙂
- Read Lesson 1 from Here
- Read Lesson ii from Here
- Read Lesson iii from Here
- Read Lesson iv from Here
- Read Lesson v from Here
- Read Lesson vi from Here
- Read Lesson vii from Here
- Read Lesson 8 from Here
- Read Lesson ix from Here
- Read Lesson 10 from Here