You are aware of the fact that bank provides financial aid to their customers. In context to this,
elaborate the types of loans given by banks.
These days banks provide various types of loans to the loan seekers.
Types of Loans
(i) Personal Bank Loans They are provided to an individual, rather than to a group or business. They are generally provided to facilitate the personal financial problems of an individual. They are of two kinds secured and unsecured personal loans.
(ii) Auto Loans They are provided to facilitate the purchase of vehicles. After the purchase was made the amount of loan plus interest is given to bank in instalments. In case of defaults in payment the vehicle is repossessed by the bank.
(iii) Home Loans They are given to the customers to facilitate the process of construction or purchasing of a home. The amount of such loans are quite heavy. Thus, they are secured by the mortgage you owe.
(iv) Investment Bank Loan They are generally taken up by large entrepreneurs who make the investment in certain projects. These kind of bank loans need credit checks which are rigorous because of the large amount of money involved. They are also considered as secured loans as you don’t pay the bank amount, hank automatically sell your mortgage and earn the dipped money.