The money lended by an entity to another entity in return with some interest is the main principle of borrowing. Credit amount may differentiate in every aspect as for what purpose the transaction have been made. Rate of return is also different as per the guidelines followed by the lenders. In short it can be said as the debt amount to be paid back with specific time period allowed. A writing agreement is signed between the parties so that it can be act as a proof for interchange. There are many types of loans for their classification some are as follows. • Car loan: An amount provided to the borrower in which some down payment is made and remaining finance is generated by a legal money provider. The sum is paid back with easy installments defined by a specific period of time. It includes different rate of interests as per the credit worthiness of the lender and buying power of buyer. • Home loan: A loan in which a person raise amount to acquire some living property with help of different lenders may be real estates’, banks or any other financial institute. The borrowing are always of huge amount with distinct repaid duration may be 5 years, 10 years, 20 years. An individual gets sums only upto 80% to 90% of the total cost of the home. • Equity loan: It refers to the difference between fair market value of the home and the amount of mortgage owned. It is the value of sum invested in the property. The equity loans have low cost than other consumer loans. A lump sum amount is paid such as for home improvements with a legal agreement signed between the parties.
• Personal loan: This deals with personal drawing of a human such as buying car, mortgage loans, credit cards, payday loans. The credit strength of borrower help in defining the interest rates. It provides a facility of decreasing monthly payment by selecting long duration payment terms. • Business loans: A type of borrowing in which repaid amount is use for setting up of economic activities with a view of expansion. Many corporate bodies take this kind of loan to improve their financial assistance. There a different types of business loan to meet the requirement of various business activities such as asset finance, invoice finance. These types of loans services are easily provided in Tri-city (Chandigarh, Panchkula and Mohali) which can be explore through web. http://www.sabonclick.com/