Everyone needs money.But sometimes despite all our effort our earnings are not enough to take care of our requirements. It is at such time that loans provide us with an alternative. Short term or long term loan can prove fruitful in fullfilling commitments in case of cash crunch situation.
Going by definitions, a loan is a debt that has been borrowed by the borrower from the lender and is needed to return to the lender on a later time which has been mutually agreed by both the parties.The amount thus bought by the borrower is called Principal.Normally the Principal is provided at a cost referred to as Interest, which is the incentive for the lender.Typically, the money is paid back by the borrower in regular installments, or partial repayments; in an annuity, each installment is the same amount.
Although there are different agencies and individuals from where loans can be arranged, its mostly the banks that act as the lending case. The amount that bank can lend as loan depend on different criteria. Generally there are various heads under which banks lend to industries, tade associations and Individuals. In this section we make an attempt to provide information pertaining to different kinds of loans that can be arranged from banks alongwith the required procedures.