Loans From Banks

Bank Loan culture has become very popular especially in the business world these days. Bank loans for domestic purposes are also taken by the people in huge. Bank loans are a great source to fulfill the immediate cash need such as settling the debts, other business needs, urgent medical expenses, to purchase house or vehicle and many more. Banks offer a variety of loans to their customers. The terms of the contract may vary from customer to customer depending upon the purpose of the loan, amount of loan and the time taken by the loan to pay back the loan.

Main Theme Of Bank Loans:


Loans From Banks


A vast variety of bank loan are offered world-wide. Different types of loans have different characteristics. Generally the things considered in the bank loan is the amount taken as a loan, the time taken to pay back the loan, collateral security against loan and the terms of contract. The terms of contract includes the interest rate, processing fee schedules, obligations in vase of non-payment etc.

 Types Of Bank Loan:

Generally bank loans on the basis of time are divided into two types which are long term loans and short term loans. It is discussed below in detail:

  • Long-Term Loans:

.         Long term loans are granted for a period of more than three years. The main feature of this loan is the collateral security given by the borrower against the loan.

  • Short term loans:    

          Short term loans are issued for a period of three years or less. The duration of short term loan is very small. Loans which are issued for a period of one year or less are categorized under the head of short term loans. The bank loans which are offered for a span of more than one year are classified as long term loans.

 Security Against Bank Loans:

Loans may be secured against collateral security in the shape of stock, property and other assets. Such practice is very common in those cases where the borrower and the lender are unknown to each other’s or the relation between them lacks trust.

Loans may be issued to customers without any collateral security. But in this case bankers are very much concerned about the credit and financial history. Loans can be issued to the customers without any collateral security if they have a good credit history.

 Installment Methods Of Bank Loans:


Installment Methods Of Bank Loans


Loans can be paid back to the bank in installments which can be monthly, quarterly, semi annually or annually. It depends on customer how much time and in how much installments he wishes to pay back the full amount of loan and interest. The bank provides them with the schedule of guidance. The customer has to choose that which suits him. The installment comprises the portion of the actual amount of loan plus the interest due.

 Tips And Advices:

Loans are liabilities and it is an obligation on the borrower to pay back at any cost. In case of default he may face imprisonment, penalties and snatching of property. The customer should carefully investigate all the terms of contract especially the interest rates and any processing fees associated with the loan.

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2 Responses to “Loans From Banks”

  1. Cathy Miller says:

    Thanks for this information! People who already have a loan or planning to get a loan must have the proper knowledge regarding loans. By this information it could give an edge for people to strengthen their foundation and also to prevent them to get into a crisis!

  2. Lowermypaydayloans says:

    You are one step away from the quick paydayloan relief you need TODAY!

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