Different Types of Loans
Banks, NBFCs, and other financial institutions help people in financial crises by providing them with loans. In general words, Loans is a legal agreement between a lender (bank, NBFCs, other lending firms) and a borrower in which a financial institution gives money with the promise from the borrower that he or she will repay the borrowed amount with interest. There are many financial institutions available in India that are giving loans to eligible borrowers. The eligibility criteria for the loans are set by the lending institutions, it includes the CIBIL Score of the borrower, Banking statements, income proof, Salary Slip, and KYC Documents. There are only three components of loans namely, principal, borrowed amount, and interest rate and these are the focus points that must be considered before applying for any loan. Before going forward with the eligibility criteria for the loans, let us understand the types of loans. The article below shall explain the types of loans available