To assist for a certain planned or unplanned events, a loan is a sum or amount of money borrowed from the bank. In this process, the borrower is supposed to pay back the loan which includes the interest charged over a specific period.
For different financial requirements, there are several types of loans which comes in quite a few formats. A loan is granted from a bank in the form of a secured & unsecured loan.
A large sum of money required to purchase a home or a car is known as a secured loan which falls under the category of home loan or car loan. Smaller amounts of money such as student loans or personal loans fall under the category of unsecured loans.
Personal Loan: A personal loan can be defined as a type of unsecured loan which is borrowed to meet the borrower’s current financial requirements. While availing a personal loan, an individual is not required to pledge any security/collateral, which is why the interest rates are considerably higher in unsecure loans.
Also, this money can be used by the borrower’s will. Hence, this loan can serve the borrower as a solution for managing the wedding expenses, travel budgets, medical emergencies and also reasons like debt consolidations, home renovations and others.
Home Loan: Home loan is termed as an amount of money that an individual borrows from a bank or can be defined as a company lending money with some rate of interest to be paid in the form of EMIs every month. In this format, the money lending company takes the property as a security against the borrowed home loan.
The nature of property can be: Personal or Commercial!
In case, the borrower is not able to pay the amount; then the money lending company has all the legal rights to recover the outstanding amount by selling the property.
Car Loan: As the name suggests, it is pretty much clear what a car loan is! A car loan can be defined as a personal loan borrowed to purchase an automobile. To be specific, a lender or company gives the borrower a loan to buy a vehicle.
In return, the borrower agrees to pay the amount of the loan along with a specific rate of interest. Usually, this is a monthly payment process until the due amount is fully paid off.
Business Loan: As the name alerts, a business loan can be considered as a loan which is financed to a borrower to meet the immediate requirements of their respective growing business.
Hence, in case, if an individual is looking to expand the existing business scenario, i.e., boost production, buy machinery or other such needs, go for a business loan.
To conclude, above mentioned loans come under the popular loan categories borrowed by masses.
Let’s discuss further!
Secured Loan & Unsecured Loan A secured loan is a loan which is borrowed for a long span or let’s say it is a long-term loan which has a guarantee attached to it. Hence, these loans are taken as the best way to borrow a large chunk of money to purchase or construct a property.
But, these large chunks cannot be borrowed by an individual without keeping a guarantee, such as home, assets or other considerable papers. The company takes this as a leverage to assure that the individual will pay the full amount in time.
Unsecured loans are for a shorter duration and also has no guarantee attached to it. They are given to the borrower based on their financial record and by their credit score. Personal loans, credit cards and students loans fall under the category of unsecured loans.
Automatically, the risk of the company to such loans becomes high! Hence, the rate of interest on these loans is higher compared to the secured loans. Always, consider the financial institution before opting for a secured or an unsecured loan. Consulting will open options for you which will be imperative for decision making.
Now, there comes a term called, Payday loans. Let us figure out ‘what exactly payday loans are?’
“A payday loan carries no set definition; this loan is usually a short-term and high rate of interest loan”. Usually, payday loans are supposed to be paid on the next payday.
Hence, they are granted for short durations!
Let’s discuss the criteria to apply for a loan online! Shall we?
Depending upon the type of loan, every financial institution has different criteria. However, they have common elements and points. When you apply for a loan generally, you must possess:
Age: An individual should be aged above 21 years, should be salaried, must not be above 58 years of age. On the contrary, if you are self-employed, the minimum age to apply for a loan is 25 years and the maximum reaches out to 65 years.
Business/Job Experience: For a salaried person: minimum 1 year of working experience. For a self-employed person: minimum 3 years of working experience.
Profit/Income: For a salaried person: minimum salary should be Rs.17500/- For a self-employed person: minimum drawn profit should be Rs.2 Lakh after paying the taxes.
These criteria should fulfil along with the necessary documentation.
Now, Let us talk about the factors or the parameters which should be kept in mind.
When you are applying for a loan, there are a set of things that an individual should remember. Such as:
These are the few key points which you should keep in mind before applying for a loan.
WealthCounty is here to help and guide you in the right direction. We help you opt for the best loan deals, may it be; home, car, personal, student, business or any other form of a loan.
At WC, you realise how quickly cash loans are delivered to you. All you need to do is, apply for a loan and that’s it!
Q. Where can I compare the best loan deals?
A. Wealth County is the place! Here, you can compare the best deals from various banks in an instant.
Q. How much loan can I get?
A. Well, there are certain parameters which decides how much loan you can really get! Majorly, your cibil score and financial condition are taken into consideration before granting you a mortgage. Rest can be discussed further.
Q. How much loan can I afford?
A. Again, it clearly depends on your financial capabilities. Accordingly, you can decide the strength and amount of loan you can afford in one go.
Q. Which is the best online loan marketplace?
A.4. Wealth County is an ultimate online loan destination to ease out your issues in the best possible manner.
Q. How do I get cheap loans?
A. Well, quite simple! Cheap loans are no trick. Compare all the loan deals at Wealth County and you will be able to figure out yourself!
Q. How do I know about the low & cheap rate of interest?
A. It entirely depends on the bank or the company you are choosing along with the type of loan. Hence, we help you compare the best loan deals.
Q. Are there any hidden charges on the borrowed bank loan?
A. Each ‘money lender - bank/company’ has their own policies. Therefore, Wealth County helps you compare all the details.
Q. How do I get fast and instant loans?
A. We have designed the loan approval structure in such a manner that loan approval is no more a hassle. Now, you can quickly get fast loan approvals.