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| Various type of loans and the analysis |
A sum of money taken from someone which has to be returned back on a future date along with some additional cost(interest) is a loan. Note that this money has to be returnable and hence you should be very choosy while taking a loan.
We try to cover various types of loans in brief.
Auto loans: A loan is availed for buying an autombile by pledging the vehicle as collatoral.
Mortgage loans: A loan is availed for buying a property by pledging the house/property so that if you fail to pay back, the lender has the right to sell the property and recover the dues.
Personal loans: A loan is availed for an undisclosed purpose to the lender.Here usually income proof is the sole major requirement and an agreement to be signed for prompt payment.
Business loans: A loan is availed for requirements of your small business.
There are many other types of loans available in the market which are named differently from lender to lender. Be wise enough to know the actual interst rates before you avail a loan. |
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