What is a bank loan & it’s different types

Most of the people have a little knowledge of the word “Loan“. In different cases, for different needs, different people need different types of Bank Loans. For this, from today’s article we will know the details information about bank loans.

Through which you can know about various issues related to bank loans.

For example – What are bank loans, how many types of bank loans and how to get bank loans, ways to repay bank loans etc.

If you want to take a loan from the bank for any reason in the future, then it is necessary to know the answers to all these questions. So keep reading the article carefully.

What is a bank loan?

A person or a company takes a loan from a bank for its own work, and later settles that loan with some interest – this process is called a bank loan.

A person can have various reasons for taking a loan. And the bank provides various types of loans to that person based on certain papers and conditions.

Such as personal loan for personal work, educational loan for education, car loan for buying a car etc.

Now we will know the types of bank loans and how to get bank loans.

How many types of bank loans?

Divided according to time, bank loans are of three types. They are –

Short Term Loan – This type of loan repayment period is less than one year.
Medium-Term Loan – The repayment period of this type of loan is between one to three years.
Long Term Loan – The repayment period of this type of loan is above five years.

There are different types of bank loans based on the method of taking the loan. Here is the information about some particular loans.

1. Personal Loan

Personal loan means a loan taken for oneself. Generally any loan is taken for oneself but personal loan means taking a loan only for doing one’s personal work.

Like paying school fees, buying any expensive gifts etc.

Not many documents are required to be submitted by the bank for personal loan. This type of loan is available only after submitting your income statement.

2. Security loan

In case of taking this type of loan, you have to submit your security paper to the bank and take the loan.

A security paper is a paper used to buy a bond from the government or invest in a mutual fund.

Bank will give you loan by depositing this security paper. And if you can’t repay the loan for any reason, the bank will sell all those papers.

3. Gold Loan

The method of taking a loan from the bank instead of specific gold is called Gold Loan.

While taking this loan the person has to deposit certain amount of gold in the bank and the bank gives 80% of the total value of that gold as loan to the person.

4. Home Loan

A loan taken from a bank to buy a house or flat is called a home loan.

But with home loan not only you can buy but you can also take loan to build house. The repayment period of these loans ranges from five to twenty years.

This type of loan is taken by showing it in front of the bank by adding the various expenses of building the house.

5. Property Loan

To take this type of loan, you need to submit any type of property paper to the bank and take the loan. You can submit house paper or land paper or shop paper to avail this loan.

The repayment period of these loans is usually between two and 15 years.

6. Car Loan

A loan taken for buying a new car is called a car loan.

7. Education Loan

The type of wrong from the bank for a student to study is called education loan.

These types of loans are given to those students who can repay the loan. Two things are looked at while taking this type of loan.

One is the income of the student and the other is which institute the student wants to join and whether he or she will be able to repay the loan by working later.

After verifying all these things then an education loan is given to a student.

8. Corporate Loan

When a loan is given to a large individual or company, it comes under corporate loans.

Like Reliance Industries, Tata, Flipkart etc.

How to get bank loan?

Hope you have understood what is a bank loan and what are the types of bank loans from the above information. Now we will know about the way to get bank loan.

Ways to get Bank Loan – To get a loan from a bank, you first need to go to a certain bank.

Then there is a discussion about the type of loan you want to take. And you have to submit legal papers to the bank about how you will repay the loan later.

Then the bank will verify your PayPal to see if you are a suitable person to take the loan. If you are LGBT based on paper then the bank will give you loan.

Each bank’s loan procedure is slightly different. For this, before taking a loan, contact the specific bank directly or visit the website of the specific bank online for additional information.

From there you will get the loan details.

Bank Loan Repayment Rules

Bank loan repayment rules are different for different loans.

You have to repay the bank loan according to the terms of the type of loan you have taken.

We do not want to give you wrong information here as every bank has different loan repayment rules. Therefore, you can directly go to the bank or go to the website of the specific bank to know the details about the bank loan repayment rules.

And by going there you will get various information about the type of loan you want to take.

Bank Loan Calculator

To get a loan from a bank, you must do the calculations. For this you can use bank loan calculator.

To use the bank loan calculator, if you go directly to Google and search by writing loan calculator, many types of calculators will appear in front of you.

You can calculate the loan according to the loan category, selecting any one from there.

Or you can directly open the loan calculator through this link https://www.bankbazaar.com/finance-tools/emi-calculator.html.

Conclusion

Hope you have understood in detail about what is a bank loan and how to get a bank loan from this information today. If you need a bank loan for any reason, then you can directly go to the bank and apply for the loan with detailed information.

And if you like the article then please let us know by commenting. And don’t forget to tell us if there is anything else to know about bank loans.

We will try to provide you with more detailed information about bank loans later. Thank you, stay well.

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