In general, a loan is a sum of money taken from other which is to be paid back within a definite period of time with the desired interest. According to the finance, it is a debt. There are different types of loans existing in practical life which are as follows:
· Online Loans: The loan that can be managed
through internet or online is known as online loans. There are so many financial institution that can be fetched information from online search search and you can apply through online.
· Personal Loans: This
is a loan for which all the personal details or documents are to be provided in
order to get loans from financial organizations. The personal loans while
taking from or giving to are great ways to resolve the financial crisis and all
the activities generated by the economic system. If you have a lot of money,
then you can give loan to others with the appropriate repayment interest rate
by taking the basic documents as I mention the points given below. The minimum
requirements for getting personal loan is vary in different countries. The
common things you have to know before applying for personal loan can be
summarized as the following points:-
ü Monthly
income details as an evidence of repayment of Sum
ü Your
personal property documents.
ü Monthly
expenses details.
ü Family
background.
ü A
photocopy of driving license.
ü A
photocopy of Citizenship or Green card
ü Business
registration card if you want to take loan for business.
ü Interest
rate you can afford for repayment after a fixed period of time.
ü Other
remaining information that you owe.
· Student Loans: A
student loan is differ from other types of loans because the duration of
academic field is quite longer. That is why the interest rate may be
substantially lower and schedule for repayment may be longer as the student is
in the state of getting education. Mainly, loans for students are come into
existence to help students pay for tuition fee in University, books and living
expenses.
Eligibility for student loans:
ü The
student should belongs to the corresponding citizen.
ü Should
have at least intermediate or higher secondary level or A level academic
qualification.
ü The
student`s parents/guardian should have sufficient regular income to pay
interest.
ü Eligible
or offered courses should be either Graduate/Master/professional courses.
Supporting
documents required:
The requirement for the
processing of student loan may vary with different countries. Though the common
documents for the worldwide students who want to take the loan for their abroad
study or home study are as follows:
ü Loan
application form.
ü Mark-sheet
of last qualifying examination or courses.
ü Proof
of admission to the new course.
ü Schedule
of expenses for that new course.
ü Two
or Four copies of recent passport size photograph of the students and their
parents.
ü Copies
of foreign exchange permit if necessary.
ü Copies
of citizenship, passport of the students and citizenship of their
guardian/parents.
ü Copies
of ownership certificates of the proposed property to be mortgaged or
government security.
ü Brief
statement of regular income, assets and liabilities of parents.
· Car Loans: As we all know that car is an expensive
luxurious mechanical product which can`t buy from individual small amount of
income. For this, the source of income should be higher, a minimum income of
$3000 in a month can afford for car loans or to buy car. Most of the business
person buy car through finance in a very low interest rate for a short term
period. You too can buy car and can reduce the total sum of loans in monthly
installment. The car loans schemes are different in different countries.
· Mortgage Loan: If a
loan is taken by using the real property (land, home etc.) as a security is
known as Mortgage loan.
The
requirements for Mortgage loan is as follows:
ü The
creditor should bring a copy of citizenship.
ü Map
of land or home that you want to mortgage.
ü Ownership
certificates that you owe.
Including these documents,
you have to go for financial institution from where you are interested taking
loan by mortgaging your property. Other remaining documents may need to be
included depending upon the law of different countries.
· Small business loans: The loan taken for small
business in the starting phase of business run.
·
Micro Finance:
·
Cash Loans:
·
Business Loan:
·
Unsecured Business Loans:
·
Unsecured Loans:
·
Bank Loans: The loans taking from Bank is known as Bank loans.
·
Short Term Loans:
·
Quick Loans:
·
Pay Day Loans:
·
Loan Insurance: It is the protection of loan to be returned in the fixed period.
·
Consolidation loans: The loans which are taken for a consolidation.