What is a loan, how is it taken?

In today’s time, everyone needs money. If you do not have money, and you have to buy something, then you have a perfect option to take a loan from the bank. In any big trouble or for any money problem, the life of a human being is made very easy by taking a loan from the bank.

Often you must have heard people talking or seen doing any big trouble or any new business after taking a loan from the bank for anything. To take a loan from the bank, you have to apply to the bank. Only after that can you get a loan from the bank. Let us know today through some articles how bank loan is done to you, how many types of people can get loans, let us know about all these.

What is loan?

The most significant need of today’s man is money. Whenever any person takes a loan for their work or any company, the amount taken by the bank is called a loan. This loan has to be repaid in the bank with interest in a few months or years. Repayment of the amount given by the bank with interest is called a loan.

Most of the people in our country belong to ordinary families. Today, all people need money. Whether it is to build a house, study, buy a car, or there may be many other reasons, due to all these reasons, people cannot buy anything from their earnings because today human beings need money. There is a lot of need, but the income is significantly less. In such a situation, a loan is taken from the bank in the form of a loan to complete all the works.

Reasons for taking a loan by a bank

There can be many reasons for taking a loan, and a person does not take a loan unnecessarily. Suppose a person wants to start a new work or for his job. For some reason or the other, this person has to take a loan. If the person wants to buy a house, then that loan is called a home loan. To take a loan for that, it is called a personal loan. There are different reasons for handling all such loans, and they are also divided into different categories.

When a person takes a loan according to his need, he repays the amount of some installment every month out of his earning, and all the person ends this loan amount with extra money, i.e., interest, the entire amount of this loan. That’s why the bank helps all the people by giving them loans according to their needs because no person can probably fulfill their needs with their earnings. That’s why a person can easily do all the work by taking a loan from the bank.

Definition of bank loan

Whenever a person borrows money from the bank for any of his business or his work or any state or country and within some time by the bank the amount of that loan is repaid with interest, the same is called loan. Is.

When giving a loan, the bank provides its customers the information about the person taking the money or the company of the country along with the people about how long the loan amount will be given by the bank with interest every year. If the person taking the loan is satisfied with all the information provided by the bank, then the loan is given to that person.

After this, the bank also has complete information about the person who wants to take a loan. Only after getting the correct information about all of them and checking his civil score gives the loan to the individual.

Categories of loans offered by the bank

Loans are divided into two categories by all banks which are as follows…

Secured Loan

The secured loan is under which the person has to pledge something like property cold fixed deposit PF etc. with the bank as a guarantee. Even after that, when the bank gives the loan, you commit anything that means depositing it with the bank as security. Only then the bank gives you the loan.

secured loan

For example, you have applied for a home loan from your bank for buying a new house. Now when the bank gives you the home loan, first you will provide all the documents of your property in the name of the bank, only then the bank will give you the loan. . When you repay the amount given by the bank with interest, then the bank returns the papers of your property in your name.

Unsecured Loan

This loan does not require any guarantee. It is meant to fulfill all the needs of the individual. The bank gives this loan for a short time. This loan can be taken through a personal debit card and credit card only.

Unsecured Loan

This loan has to be repaid quickly after the need of the human being or whatever the requirement is fulfilled. For this loan, the bank looks at your CIBIL score and personal account transactions. Only after that, the loan is given to the customer.

Bank Loan Types

Whenever a person applies for a loan by going to the bank for his please e-work or the company, the banker first asks the customer what kind of loan you need and for whom. A loan means that the person needs it. In the same way, he is given more. It is not that you asked for a loan from the bank, and the bankers are not giving you money, but you have first to put your need in front of the bankers. Only then will the bank decide whether you can get the loan or not. Let us know how many types of loans are given by the bank –

1. Home Loan

Today in our country all the people want a small house, so many people are like this—those who do not have their place. The reason for this is that the person does not have enough money to buy his house.

 In such a situation, a person has to go to the bank and apply for a home loan to build a house of his own. The bank gives home loans to all needy persons.

For this, the person has to deposit money with the amount of interest to the bank in the form of monthly installments every month. It takes a person 20 to 25 years to repay the loan amount.

 Home loan is very beneficial for the general category of people. Those people who cannot build a house in their job, such people are helped by a given home loan by the bank. Because of this, today, even an ordinary person makes a small house of his own.

2. Car Loan

Today everyone thinks that he should have a small house and a car. Only then he starts to understand his family as a whole, the first dream of a person is a house and the second dream is a car.

Anyone working person finds it very difficult to buy a new car and fulfill his family’s dreams.

To fulfill these dreams of the person, there is also the facility of a car loan by the bank, in which any employed person can apply for a car loan in the bank, you can go to the bank and fulfill all their conditions. You have to use it for.

After that, you will get a car loan from the bank, and you will have to pay the installment of the car loan every month through your bank account. The interest for taking a car loan is also not high.

3. Loan for studies

Today, all the parents want their children to be educated, doctors, engineers, lawyers, and the field in which they are interested should progress. In such a situation, a big problem for the middle-class and low-income families becomes for the education of these children, because as they grow in the big classes, a lot of money is spent on studies. In such a situation, all the banks give loans for the further education of the children.

To take this loan, a guarantor is required, who should take full responsibility for filling this loan. For the guarantor, the student needs to have any family member or father’s account in that bank for studies. The loan is given.

4. Personal Loan

A personal loan or personal loan can be taken by any person to complete his work, and this loan is also called an unsecured loan. The rate of interest in this loan is high as compared to other loans.

Today most banks give personal loans to individuals. Under a personal loan, a person can spend the money for any of his work.

5. Loan for Business

In our country today, many such schemes are being run by the Government of India, under which the government is giving business loans to the employed persons under Mudra loan.

As you all know, today all the people face the massive problem of unemployment in our country. In such a situation, the government is taking many such steps. So that people can get new employment opportunities. Under the Mudra loan by the government, a loan of 10 lakh or more is available for employment.

6. Gold Loan

Nowadays, you will often see advertisements of many companies through TV radio newspapers, and I am constantly shown that how to take a gold loan is a straightforward process. You can take a loan only on the cost of gold by pledging gold in any company.

Whenever people need money, and there is no way in front of them, in such a situation, they consider it appropriate to deposit their gold with the bank and take money instead because gold is safe in the bank.

7. Mortgage Loan

It often happens that suddenly there is a need for money, then the thought of taking a loan comes first in mind. For this, the biggest problem comes with how to take a loan from the bank. In such a situation, you can mortgage your house or any property with the bank as security. Your property is mortgaged with the bank in the form of protection. A mortgage loan is a loan given by a mortgage of your property with the bank.

To get a mortgage loan, you can also take it for buying your new house, etc. The amount of this loan depends on the condition of your property and the loan policy of the bank.

In earlier times, people made money by pledging their gold with any such shopkeeper or goldsmith. There used to be a lot of loss in it, but today banks have made this facility very easy by giving the gold loan. In this, the person gets a lot of benefits. The man also earns money for his needs, and his gold also remains safe.

8. Loan against Property

Loan against property, i.e., Loan against Property, it is clear from the name itself that you will keep the property in the bank. You get a loan from the bank only after keeping any of your personal property.

A loan is given against his land. That is, after mortgaging the person’s property, the loan is obtained. Whoever applies under this loan has his parents as a guarantee. Whatever the documents of the person’s property, the bank has the right on them legally. Unless the person takes that loan, it pays. Till then, his property will remain with the bank on the mortgage.

Documents and eligibility required to take a loan

Whenever you apply for a loan from the bank, the bank gives you the loan after seeing some essential documents and qualifications. Let’s know what essential documents and capabilities are necessary…

  • The age of the applicant should be more than 21 years.
  • The annual income of the applicant should be between 300000 to 500000 years.
  • 6 months bank statement
  • Salary slip
  • Check
  • Residential Proof
  • Aadhar Card and Pan Card

What are the benefits of taking a bank loan?

Every person needs money today. In such a way, a person fulfills his needs by taking a loan from the bank, let’s know the benefits a person can get by taking a loan from the bank…

The most significant advantage of getting a loan from the bank is for yourself. Whenever a person takes a personal loan, it does not affect his budget. The need of the person is also fulfilled. Apart from this, it also handles your daily expenses correctly.

Whenever you apply for a bank loan, all the loans are approved in 48 hours. For this, the most important thing is that you have to deposit all the necessary documents in the bank in advance.

The most significant advantage of taking a loan from the bank is that he gets the loan amount based on his earnings and bank statement according to the person’s need.

Whenever you apply for a loan, the essential thing is to repay the loan amount. For this, you are given a period ranging from 12 months to 60 months by the bank.

In all types of loans taken by the bank, you also get tax benefits as per the Income Tax Act of 1961.


In today’s time, all the people who need a lion or loan also have to be taken through 10. Loans can be of any type, whether a personal loan, car loan, loan for business, loan to the person. It is required that they take a loan as per their need.

In today’s time, any person can fulfill his needs by taking a loan for his needs.

Today, through this article, what is a loan, what are the types of loans, in how many parts the loan is divided, all these things have been explained in detail, what are the qualifications of a person to take a loan, what are the necessary documents required, information about all these things is given in this article.


What is a loan?

Amount taken by the bank as a loan.

How many types of loans are there?

2 types

Where can the loan be taken?

By banks and all NBFC institutions.

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