LOAN AND ITS TYPES
LOAN AND ITS TYPES
DEFINATION:
Loan is also known as Debt.
In other words:
Borrowing sum of money from a financial institution or government agency and repaid with an interest is called loan.
TYPES OF LOAN:
There are some kinds of loan which are as under,
- Secured loan
- Unsecured loan
- Demand
SECURED LOAN:
In this kind borrower pledges an assets.
UNSECURED LOAN:
These kinds of loans are not secured against an asset.
DEMAND:
These loans are the short term loans which financial institution may call any time for repayment.
HOME LOAN:
The loan which borrows for home made appliances.
OPEN ENDED LOANS:
This loan you can take over and over.
CLOSE ENDED LOANS:
This loan you can take only one time.
CONVENTIONAL LOANS:
Those loans are not insured by any government agency.
Tags: Close Ended Loans, Conventional Loans, Loan and its Types, Open Ended Loans