Name any two purposes for which a loan can be sanctioned by a bank?
Answers
Answer:
Explanation:
Bank is an institution which provides loan to the public as well as accepts money in the form of deposits from them.
The bank provide public with the facility of loans if only he/she can repay it back on time in future.
There are various reasons for which an individual borrows money. For instance for buying a home or for personal purpose or for expansion of business. The money with them is not enough to meet the above requirement which enforces them to go for a bank loan.
The two purpose for which bank can provide loan to an individual are
- Home loan
- Personal loan
But this does not mean that the individual does not have the ability to repay the loan amount in future.
Buying a home is a costly affair. It is not possible for every individual to have a reserve which can be used to buy a home. The bank provide them with a home loan which the individual repays back in easy installments over a period of time. Goods, such
Certain consumer items such as, washing machine, television, refrigerator, car etc are expensive products.The helps the individual in buying them through personal loan. These loans are paid off by the individual though monthly installments.
Hope this helps.