Loans Explained: Types of Loans and Their Uses
•Download as PPTX, PDF•
0 likes•169 views
The document defines and describes various types of loans including term loans, personal loans, home loans, property loans, vehicle loans, education loans, gold loans, business loans, policy loans, and agricultural loans. A term loan is provided for business purposes and must be repaid within a specified timeframe. Personal loans can be used for various personal expenses. Home loans are secured loans used to purchase or construct a home, typically with lower interest rates. Business loans provide capital for startup costs or expansions that companies must repay under the loan terms. Agricultural loans aid farmers in purchasing assets, creating assets, and other rural agricultural activities.
Recommended
More Related Content
What's hot
What's hot (20)
Similar to Loans Explained: Types of Loans and Their Uses
Similar to Loans Explained: Types of Loans and Their Uses (20)
Recently uploaded
Recently uploaded (20)
Loans Explained: Types of Loans and Their Uses
- 2. The act of giving money, property or other material goods to a another party in exchange for future repayment of the principal amount along with interest or other finance charges is called loan.
- 4. A term loan is simply a loan provided for business purposes that needs to be paid back within a specified time frame. Term Classification ShortTerm (1 year) Medium Term (1-3 years) LongTerm (<3years)
- 5. Personal loans are intended to meet any kind of personal expenses. The loan can be for any of the following purposes:- Family functions Meeting travel expenses in India or abroad Marriage expenses of children Buying a laptop / pc Interior decoration of house
- 6. The individual takes the loan by mortgaging the house property. It is a Secured loan. • One of the cheapest retail loans after home loans; usually about 12%-16%. • Since the rate of interest is lower, frequently Equated Monthly Installments (EMI). • Maximum loan eligibility is determined primarily by the value of the property and income.
- 7. EDUCATION/STUDENT LOAN The purpose of education loan is to provide better educational opportunity to bright and financially backward students and brings within their reach all types of education. A. Tuition fees payable to college B. Hostel fees C. Examination/ library / laboratory fees D. Purchase of books/equipment/instruments/uniforms E. Travel expenses F. Purchase of computer ,if it is necessary for completion of course. G. Any other expenses.
- 8. Vehicle loans particularly car loans are offered by all the banks in the country. the terms and conditions of vehicle loans vary from bank to bank.
- 9. It is a form of debt financing whereby a potential gold producer borrows gold from a lending institution, sells the gold on the open market, uses the cash for mine development, then pays back the gold from actual mine production.
- 10. A loan issued by an insurance company that uses the cash value of a person's life insurance policy as collateral. Traditionally, these were loans issued at a very low interest rate, but that is no longer universally true.
- 11. The basic needs of a human include, food, cloth, water, shelter and security. Housing is an important need. Banks provide different types of loans for building house known as HOUSING LOANS. Home purchase loan- for purchase a new house. Home construction loan- construction of a house
- 12. Businesses require an adequate amount of capital to fund startup expenses or pay for expansions. A business loan is debt, that the company is obligated to repay according to the loan’s terms and conditions. As such, companies take out business loans to gain the financial assistance they need.
- 13. It is always said that, most of the people India are depending agriculture. So, it is very important to develop the rural sector. In order to fulfill that banks provides various credit facilities to the farmers. Purchase of asset like farm machinery, bullocks, sheep etc. Creation of assets such as poultry, dairy development etc. For rural activities under agriculture, plantation, fisheries etc.
- 14. Loan application Credit Information Bureau (India) Limited Submission of Required documents Approval of loan
- 15. Thankyoufor watchingmy presentation, I hopeyouenjoyedit.