Bank Loans

Loan is a finance assistance provided by one organization to another organization at an interest rate.  All the necessary details related to loan will be clearly mention in the note which specifies interest, date of payment received, date of repayment, principal and also security related docs. The amount of money receives by the borrower is called principal. Banks offers variety of loans like Business loans, Debt loans, Small Loan, personal and Student loans.

Student Loans:  Financial aid provided by the banks, which help students pay for college tuition fee, books and hostel fee (living expenses). Student loan interest rate is much lower when compare to other loans.In Many banks repayment starts 6 months to 12 months  after a student leaves a school or college.

In India many of the banks offers financial aid to help students.  For studies in India, a bank offers approximately 4-10 lakh rupees and 20 lakh rupees for studies in abroad.

Eligibility criteria for education loans:

1.  He/She should be a Indian resident.
2. A collateral security will be asked if an individual taking loan of  more  than 4 lakhs.
3. He/She should be aged between 18 – 30 years. This will be depends on bank norms.
4. Repayment will be schedule as per bank norms. 

In Australia, students get financial aid through HECS(Higher education loan programme)- HELP( Higher education contribution scheme) scheme. Overseas students are ineligible for any loans under this scheme but these students can apply for international scholarship.

In USA, students get financial aid through federal loans and private student loans. The students who are convicted of drug offenses are excluded from the federal loans. Income based repayment does not apply for private student loans. Most of the students selected for federal loans in United States.

In United Kingdom, students get financial aid through state owned students Loan Company.  The primary motive is to provide education to the student in UK but not for profits. Loans are cancelled if the student dies and repayment will be based on borrower’s current level income.

Small Loans: Small loans and credit card debt are unsecured type of  loans. Salaried individual and also self employed person can apply for person loans to full their dreams like wedding in the family or higher studies or medical expenses. Banks can provide 20 lakhs if you are a self employed and also many banks offer 30 lakhs if you are a self employed business man. EMI will be calculated based up on the loan amount sanctioned. Personal loan includes car loans, mortgage loans and home loans. Secured loans having less interested rate when compare to Unsecured loans

Business Loans : Annual turnover of your should be above 10 lakhs to apply for the business loans.  An individual age limit should be above 26 years. An individual can avail maximum of  50 lakhs and repayment can repay the Loan. It requires commercial mortgages and corporate bonds. Commercial Mortgages is secured type of loans. This loan is secured  by some property like building, apartment or some malls.     

Monthly repayments can be calculated by below formula.

Where P is payment, L is a loan for n months and c is the interest rate.