A personal loan is related to finance, where the lending of money to an individual, an organization or other entities by an organization most commonly private, government banks and other financial places. The concept of loan is that the recipient (who gets the loan from the bank) should pay interest to the amount received from the donor (who gives loan to an individual or an organization) every month until the borrowed amount with interest is being paid. This is the basic concept of the loan in all the banks whereas the rate of interest changes from one bank to another.
Types of loan
There are different types of loans provided by an organization. They are
- Secured loan: A secured loan is a loan in which the recipient pledges any of his assets (say, for example, a property, vehicle, etc.) as collateral. The bank holds its property until the debt is being paid.
- Unsecured loan: An unsecured loan is a loan in which the recipient need not pledge any of his assets.
- Demand loan: Short-term loans are categorized under demand loans. They don’t have any fixed dates to repay the debt but they can be called for repayment by the donor at any time.
- Subsidized loan:When the interest of the loan is been reduced by an explicit or hidden subsidy, then that type of loan is called as the Subsidized loan.
- Concessional loan: When the loan is given at low-market interest rates or by giving grace periods to repay the debt or combination of both.
Loan against commercial property
Getting a loan for residential property is very common but there are a few who need a loan for an office space or an outlet. There are a few banks which provide loan against commercial property.
Features of loan against commercial property
- With the help of commercial property loans, one can lease or buy a new or existing office space or an outlet.
- The commercial property loans can also be used to renovate, improve the construction of the office or an outlet space.
- Legal and technical counselling is also provided along the loan to take the correct decision.
- It is an easy loan process where one can experience a hassle-free documentation process.
- Monthly instalments can be repaid in a flexible tenure period.
- This type of loan can be availed by self-employed professionals and also by the self- employed individuals.
Specifications of Commercial property loans
- Processing fees: The processing fees of loan against commercial property are usually one percent of the loan amount.
- Tenure period: The tenure period of a commercial property loan is usually up to 10 years.
- Technical evaluation: Before granting the loan, there will be a basic technical evaluation test which should be met by the property.
Need for a personal loan
For those who say, ‘I need personal loan’, this module is going to help you greatly. There are plenty of advantages to taking a personal loan. We can pay off the credit cards at lower interest rates. Lower interest rates reduce the amount of interest and time to be paid. Getting a personal loan is an easy, hustle-free process which is a greater advantage.