A personal loan is a short to medium term unsecured loan (no collateral) that you can use to meet current financial needs. Though most commonly used to meet expenses related to debt restructuring, vacations, unexpected medical expenses and down payments, a personal loan may be used for practically any type of expense. If one looks at the benefits of personal loans, one can start with the fact that the tenure of a personal loan is shorter as compared to a mortgage. Unlike mortgage, which is for ten, twenty, perhaps thirty years, a personal loan is commonly for between one and five years.
Why Choose a Personal Loan?
There's no limit to the number of ways a personal loan can be put to use. It can be taken for any personal reason, such as:
Personal loans act as the best-suited option to smoothen up cash flow at times of stringency. The key reason for some to prefer a personal loan is because of minimal documentation, fast processing times and the flexibility for use of the loan. Witnessing the huge potential of this market, leading banks and NBFCs in India are offering personal loans to both salaried and self-employed individuals.
Secured loans are those loans that are protected by an asset or collateral of some sort. The item purchased, such as a home or a car, can be used as collateral, and a lien is placed on such item. The finance company or bank will hold the deed or title until the loan has been paid in full, including interest and all applicable fees. Other items such as stocks, bonds, or personal property can be put up to secure a loan as well.
Secured loans are usually the best (and only) way to obtain large amounts of money. A lender is not likely to loan a large amount with assurance that the money will be repaid. Putting your home or other property on the line is a fairly safe guarantee that you will do everything in your power to repay the loan.
Secured loans are not just for new purchases either. Secured loans can also be home equity loans or home equity lines of credit. Such loans are based on the amount of home equity, which is simply the current market value of your home minus the amount still owed. Your home is used as collateral and failure to make timely payments could result in losing your home.
Secured loans usually offer lower rates, higher borrowing limits and longer repayment terms than unsecured loans. As the term implies, a secured loan means you are providing "security" that your loan will be repaid according to the agreed terms and conditions. It's important to remember, if you are unable to repay a secured loan, the lender has recourse to the collateral you have pledged and may be able to sell it to pay off the loan.
Our Federation has fixed a position in the industry by rendering highly effective Project Loanservices in the market. The monetary personnel in our crew raise capital and finance for previously existing & new and future business entities, who want to increase their field of operations. Furthermore, these workforce offer great help to our patrons for the preparation of project report with bankers, financial institutions and many others.
Blue Revolution has created good potential for fisheries development in the country. Bank provides finance to fisheries related activities such as Inland fisheries (construction of fish ponds, purchase of seeds, feeds etc.), Marine fisheries (in-shore, off-shore, deep sea fishing) and brackish water scheme. Individual, fishermans, co-op societies, companies can avail loan.
There may come a time when you can actually run out of funds and your bank account gets totally barren without a time to spend, that is when the overdrafts come in handy.
What is an Overdraft? Well, an overdraft is nothing but an extension provided on the credit by a financial institution or a bank.
Under this special arrangement of overdraft, you will be able to withdraw money from your account through cheques or other withdrawal processes. But here one thing that you should keep in mind that the credit is extended by the bank or any monetary institution up to a certain limit known as the overdraft limit; once that limit is exceeded, you will not be able to withdraw money any further. The arrangement of paying the interests is similar to that of the other financial loans.
But here is a twist as the overdrafts are of revolving nature thus instead of repaying the borrowed amount within a fixed time period, you can actually keep on borrowing the money and repaying it simultaneously. This is the reason why overdraft is also known as the revolving line of credit. The overdraft facility is generally awarded to SMEs for a year but if you maintain a good rapport with the financial institution and timely repay your debts then this service can be renewed every year. Due to its revolving nature, the overdrafts have proved to be efficient financial solutions for SMEs.