Banks are a type of financial
intermediary whose principal service among many others is to provide
loans to its customers who could be individuals/ corporations/
self-employed Professionals/ public/ private companies etc. The loans
are in turn funded by the deposits of its existing customers.
Types of Loans Available :
With the opening of the banking
sector and strict competition, both private and public sector players
are coming out with new and innovative loan plans to increase the
customer base. A number of loans such as mortgage loans, personal
computer loans, personal loans, home loans, equity loan, equipment
loans,education loans, car loans are becoming increasingly popular.
A loan is a kind of debt, which the bank provides for a particular
period of time. Banks normally charge interest on the amount of debt as
a cost for providing the loan service. The rate of interest is
determined on the basis of prime lending rate (PLR)- A rate of interest
which banks generally charge from their steady and credit worthy
customers.
The repayment is generally done through what is known as Equated
Monthly Instalments (EMI). EMI includes not only the amount of loan but
also the rate of interest for taking the loan. Usually a longer term
loan is more expensive overall, than a shorter loan, this is because a
lending institution has a higher risk over a longer period of time. EMI
remains constant over the entire tenure of the loan. In the beginning,
the interest rate component is higher than the principal amount in the
EMI. Towards the end of the loan tenure, the principal amount becomes
higher than the interest rate. EMI is calculated on a
daily/monthly/quarterly/half yearly reducing balance as the case may be.
Depending on the kind of loan, banks usually ask for a security, which
may be a tangible collateral security such a s land, building or in form
of intangible security. A bank may also ask for your NSC certificates
and other investments to reduce their risk.
List of Private sector Banks Offering Various Kinds of Loan:
| HDFC Bank |
www.hdfcbank.com |
| ICICI Bank |
www.icicibank.com |
| ABN amro Bank |
www.abnamro.co.in |
| Standard Chartered Bank |
www.standardchartered.com |
| CitiBank |
www.citibank.com |
List of Public Sector Banks Offering Various Kinds of Loan:
| Bank of Baroda |
www.bankofbaroda.com |
| State Bank of India |
www.sbi.co.in |
| UCO Bank |
www.ucobank.com |
| United Bank of India |
www.unitedbankofindia.com |
* Terms and conditions may vary from bank
to bank
Disclaimer
: This is an information based website, meant for providing
assistance to it's readers. The information has been gathered from a
number of secondary sources, we do not hold any responsibility for
mis-information or mis-communication.
