How to Take Bank Loan in 2024
Today we are telling you about What is loan and how take loan. A lot of Telemarketing Calls must be coming to you for loan because it really seems very Irritating. But do you know what is this loan after all? Why are all of them so easily ready to give you a loan? What are the different types of loan? If these questions are also arising in your mind, then what is a loan to you? Must read completely as it will help you understand the loan better.
Whenever it comes to your mind about loan, the first word that comes to your mind is bank and why not because in present times if you want a loan then you first go to the bank. .
How to Take Bank Loan in 2024
If you want to understand loan in easy language, then you can say that any thing can be loan but mainly money is considered as loan. Which is taken from another person and while returning it, he has to pay interest along with the principal amount.
We want to tell you that giving loan or loaning means a person who has money. He is giving money to another Individual Entity. It is counted among the first primary products of any bank or NBFC (Non-Banking Financial Companies) that they offer to the people.
Although everyone knows something or the other about loan, but I will give you complete information about what is loan today in Hindi through this article. So let us know about the loan.
What is Loan
When a person borrows money from a bank or any other financial institution to meet his needs, it is called a loan. The borrower has to repay the lo.an amount along with interest to the lender in a fixed time interval.There can be many reasons for taking a loan, such as building a house, buying a car, for business or for the education of your children, a person can also take a loan for many other reasons.
important highlight points used in loan
- Principal Amount: The amount that the borrower takes as the principal amount loan is called Principal Amount.
- Rate of Interest: Interest rate, some fee is paid on Principal Amount for taking loan, which is its rate, it is called interest rate.Tenure (time period): A certain time limit is set for repaying each loan, which is called Tenure.
- Lender: The lender is called the lender, in which banks and non-banking financial companies come.
- Borrower: The person who takes the loan is called the borrower.
How many types of loan
There are different types of bank loans for What is loan different purposes, but these are the main ones. They are described below:
- Personal Loan
- Home loan
- Education Loan
- car loan
- gold loan
Tenure wise types of loan
Loans are divided into three parts according to the time period:
- Short term loan : A loan in which the repayment period is 1 year or less than 1 year. By the way, the loan is called Short Term Loan. It is mainly kept in Unsecured Loan.
- Medium Term Loan – Such a loan in which the repayment period is from 1 year to 3 years, such a loan is called Medium Term Loan. This type of loan includes both Secured and Unsecured loans.
- Long Term Loan – Loans in which the repayment period is 3 years or more, such loans are called Long Term Loans. In this, only Secured loan has been given a place
What is the difference between of secured loan and unsecured loan?
Whenever you take a loan from any financial institution, you should know what is the difference between Secured Loan and Unsecured Loan: –
- In Secured Loan, we have to show our property as security to the bank. Which can be your house, land or any other property, but no such security is required in Unsecured Loan.
- Secured loan is given from medium term to long-term but Unsecured loan is given for less than 1 year.
- Interest rate is less in Secured Loan but Interest Rate in Unsecured Loan is more than Secured Loan.
- For a financial institution, the risk in Secured Loan is less because one of your things is kept with the financial institution or the
- borrower in the form of security, but the risk in Unsecured loans is high because it can be given to any borrower without security. Loan is provided.In case of non-payment of Secured Loan, the bank confiscates your Collateral ie the deposited capital, but
- in case of non-payment of Unsecured Loans, the bank can only file a case against you.
- Home Loan or Car Loan has been kept in the category of Secured Loan but the loan available on Credit card has been kept in the category of Unsecured Loan How to Take Bank Loan in 2024
How to take loan?
Two methods are used to take any type of loan 1. Online and 2. Offline You can take loan by choosing any of the two types:-
- Ways to take loan online- If you want to take a loan through the online process, then for this first of all the financial institution from which you want to take the loan. After downloading his loan form, he has to fill it and submit it. If you fulfill his criteria completely and you are found eligible for his loan, then the loan amount is credited to your bank account.
- Ways to take loan offline– If you want a loan through offline process, then first of all you have to go to that financial institution and you have to take a loan application from them and fill it. All its rules and regulations have to be followed and if you are found eligible for that loan, then your loan application is accepted and that amount is deposited in your bank account.
Benefits of taking loan (Advantage of Loan)
Following are the advantages of taking a loan –
- You can get the amount you need as per your requirement.
- If you are found eligible for the loan, then within 24 to 48 hours that amount is transferred securely to your bank account.
- To repay the loan, you can fix the time limit according to your earnings, till when you have to repay the loan.
- You can apply for that type of loan as per your requirement. How to Take Bank Loan in 2024
- You can also improve your financial condition by taking a loan.
- According to the Income tax act, 1961, you are provided with the facility of Tax Benefit in almost all types of loans.
Disadvantages of taking loan
The disadvantages of taking a loan are as follows –
- After repaying the loan, you have to pay interest along with the principal amount.
- In case of failure to repay the loan amount on time, your property can be attached.
- In case of non-payment of loan EMI on time, you may have to pay additional amount as penalty.
- The rate of interest is higher in personal loans.
- At the time of taking the loan, the borrower has to go through other types of fees which include processing fee, service fee, etc
Things to keep in mind before applying for the loan
In present times taking a loan is very easy but it is necessary to keep some things in mind. Otherwise, later you may have to repent for that thing, so let us pay attention to some such points: –
- Credit Score: Before applying for the loan, you must check your credit history yourself. This credit history is a type of record that shows the investment made by you and the loan taken by you and the payment record before that. It shows any bank that what is your previous track record? In terms of money, is it right to give you a loan or not? By the way, let us tell you that a good credit score is considered to be 750 or more.
- Rate of Interest: Before applying for the loan, its interest rate must be checked once because the loan on which the Collateral is deposited with the bank. There is a loan interest rate in it, but the loan for which collateral is not deposited has a higher interest rate.
- Processing Fee and Extra Charges: If you apply for a loan with any financial institution, then it has a processing fee and it is different for all institutions. Do check it once that how much is the processing fee of which institution and also if you delay the deadline to pay your loan, then that institution also charges you as Penalty. Which are different for all financial institutions.
Documents for Loan Application
- Application Form with your Photograph
- Identity and Residence Proof
- Last 6 Months Bank Statement
- Processing Fee Check
- Latest Salary Slip/ Proof of Business
- Form 16 / Income tax return of the last 3 years with your Business Profile as well as the complete Balance sheet of Profit or Loss of the last 3 years.
What is Loan EMI Calculator?
Loan EMI Calculator is like a calculator. Using which you calculate Monthly payable amount and Interest.
You just have to give some information in EMI Calculator. Such as Principal Amount, Time duration and Rate of Interest. With the help of this, he tells you how much interest you have to pay every month
Frequently Asked Questions for Loan
- What is open end loan?
Answer: A loan that does not have a fixed maturity date.
2. What is clean loan?
Answer: Loans that have never been Defaulted, Prepaid, Claimed or Recovered in the entire history or up to the present time.
3. What is ABC loan?
Answer: A company that operates in the financial services industry.