explain types of loan on basis of tenure
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Giving a loan or loaning means lending money from one individual or entity to another. A loan has three components – principal or the borrowed amount, rate of interest and tenure or duration for which the loan is availed. It is one of the primary financial products of any bank or NBFC (Non-Banking Financial Company) offers.
Loans can be broadly categorised as secured or unsecured. Loans that are backed by collateral or security in the form of assets like property, gold, fixed deposits and PF among others are secured loans. If the bank or NBFC agrees to give loans without security and purely based on CIBIL score and personal track records, it becomes unsecured loans.
The common types of loans that people avail are:
Home Loan
Car Loan
Education Loan
Personal Loan
Business Loan
Gold Loan
Loans can be broadly categorised as secured or unsecured. Loans that are backed by collateral or security in the form of assets like property, gold, fixed deposits and PF among others are secured loans. If the bank or NBFC agrees to give loans without security and purely based on CIBIL score and personal track records, it becomes unsecured loans.
The common types of loans that people avail are:
Home Loan
Car Loan
Education Loan
Personal Loan
Business Loan
Gold Loan
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