Types of Loan?
Introduction Nowadays loan is a common word because everyone is familiar with it in one or other way. In simple language loan is an amount which is lending from one person, entity or a financial institution to another person, entity or financial institutions. Meaning: A loan is the lending of money from one source to another source for a specified period. A loan is a debt given by an organization to another organization with an interest rate. In a loan, a borrower borrows money from the lender with a certain rate of interest and pay back it in future. The main activities of financial institutions like banks, NBFC, is to provide a loan to the customer. Types of loan There are mainly five types of loan. 1) Secured loan In a secured loan, a borrower pledges some asset as collateral like property, car etc. A mortgage loan is a type of secured loan used by a customer. In a secured loan, a money is using to purchase a property. If in case the borrower fails to pay back the loan amount a le