Money is commodity none of us can do without today. It can buy us anything but happiness (some say it can buy that too, but that’s a topic for another day). Now, why is so valuable? Because a few of us have it in cartloads, others have one cartload, and others have handfuls. However, it comes as no surprise that the needs of all remain the same. The person with little money also needs to send his/her kids to school, have three square meals a day, and have shelter above their heads. To give everyone a fair footing (or whatever else the closest thing is), is why the concept of loans came into being.
People who have excess cash deposit it in the bank, and the bank lends that money to those who are poor with an interest (part of which is paid to the person who deposited the amount and other parts being used for the development of the bank itself). A person can take loans for a number of things, in the present world, from a number of sources including banks and other organisations like Loan Street. Some of these are listed below for your reference.
1 – Jewel Loans
These are given with jewels as the collateral. The weight of the gold is measured, and 70% of the price of the weight measured is given as loan to you. It goes without saying that up until you’ve repaid your loan, you cannot lay claim to the jewels you’ve given as collateral.
2 – Loan on Deposit
If you’d deposited a certain amount at the bank beforehand, but then need the money later on, 90% of your deposited amount will be loaned to you.
3 – Education Loans
These can be availed for studies outside and within India. If the place of study is within the country (speaking for India), the general amount loaned is 4 lakh Indian rupees. If you’re planning to pursue your studies abroad, however, a third party needs to give a guarantee that the loan will be repaid for sure, along with collateral in the form of assets such as land (equitable mortgage in other words)
4 – Vehicle Loans
Up until a lakh rupees is loaned if you’re applying the loan to purchase a two wheeler. For four wheelers, the general amount loaned is 5 lakhs.
This list is obviously not exhaustive, and leaves out one of the most important forms of loans – housing loans, but they can be discussed to the depth of an entire article, some other time.
Know your requirements and apply accordingly.