A loan is a lending money by one or more individuals ,organisations to other individuals ,organizations, etc. The recipient takes debt and is usually liable to pay interest on that depth until it is repaid. The Lender is usually a corporation, institution or government. The borrower agrees to a certain set of terms including finance charges, repayment date, interest etc. Loans are mainly different types. They are gold loan ,home loan , business loan ,personal loan ,vehicle loan ,property loan etc. Loans are mainly in three categories . They are secured and unsecured, conventional ,closed end, and open end loans. In a loan the recipient and lender agree on the terms of the loan before money changes. Sometimes the lender requires the borrower to offer an asset for collateral.
Secured loan is backed by some form of collateral. Most of the Financial Institutions require borrowers to present title deeds that show ownership of an asset and until they repay the loans. Most people apply for secured loans when they want to borrow huge amounts of money. Secured loans including lower interest rates, strict borrowing limits and long repayment periods. In unsecured loans ,the borrower does not have to offer collateral. The lender works very thoroughly when assessing borrowers’ financial status. It includes education loans, personal loans and credit card purchases.
Open and loans gives an individual freedom to borrow over and over. Examples are lines of credits and credit cards. Credit limit is the highest sum of money that can be borrowed at any point. In a closed loan, individuals are not allowed to borrow again until they have repaid them.
If you want to apply for a loan you should think about your credit score and credit history. If a person has a good credit score it shows the lender that he is capable of making repayment on time. Individual should evaluate his income before applying for a loan. Applicants evaluate their monthly obligations.
Today we can see how to get a loan easily. Chit fund is a type of rotating savings .It is organized by financial institutions. It works with Group on members. An organizer brings a group together and administers activities. Each month subscribers put their monthly installment into a box. Open auction conducted to select lowest sum ,subscriber ready to take the month. The process repeats.It is a popular investment. Chit fund payments are not insured by the government. In most chit funds, bid decides who gets the full amount for the month. Uncertainty of knowing how much interest you will get.we can’t depend on chitty for an emergency situation.
Cooperative Bank provides loans.cooperative bank is a group of people. Some people have money and some don’t have money. The people who have money provide money to other people. They repay the money as installments with interest.The members of co-operative banks only get loans. It has 12 to 24 % interest rates. It has a .on limit also . We will get only till Rs 5 lakhs.
Next loan is a personal loan. Personal loans have a 16 % interest rate. It has a 5year repayment period.you will get a loan based on salary. If you have a 15,000 to 25,000 salary ,you will get a personal loan. You will get a loan based on the salary and EMI should be at 65 % of salary.If you have Rs 40,000 monthly salary, you will get a personal loan. CIBIL SCORE is important. If your CIBIL score is above 750, you will get a loan.
Next option is loan against property ( LAP). You should have property and house in your name. You will get a loan from the bank based on this property. You can make your parents joint applicants and apply for this loan.you will get a loan based on their property. You can repay the loan based on your salary. You should have a Rs 25,000 salary.
BENEFITS OF LOAN AGAINST PROPERTY
- It has an 8 to 8.5 % interest rate.
- Repayment period is 15 years.
- It has affordable EMI.
- You should take minimum Rs 10 lakhs loan
- Maximum loan amount is 60 % of the total value of the property.
- It has 1 to 3 % processing fees GST.
- It has insurance for property and insurance for the borrower.
- You can take a loan from private banks. You will get fast sanctions. Otherwise you can take a loan from your primary bank.
- You should have documents based on house,repayment capacity documents
- Title deed
- Sketch of the house
- Tax receipt
- pan card and aadhar of parent
- Salary slip
- Salary credit account bank statement
- Previous employment proof,bank statement
- Income tax file acknowledgement