Loans

LOANS 

Loan is a kind of financial function in which one person gives money to another person with this believe he will return it in future after a specific time period. The  borrower may be given the entire amount in lump sum or in installments. Loans are generally granted against the security of certain assets. A loan is normally repaid in installment it may also be repaid in lump sum. Interest is charged on the loan amount, the interest rate may be different on different kinds of loans.There are 5 types of loans-
1.secured loans
 2.unsecured loans
 3.demand loans
 4.subsidized 
5. concessional loans
                                  Advantages of loans are like today bank provides, loan for many things like car loan,home loan,education loan. It is very helpful for poor families and middle class families because they can not arrange the entire amount in one time. So if you want to purchase a car, a house but don't have the entire amount at that time  loan is the best option for you. You can easily take loan from bank for these purpose.  

           Disadvantages of loans
- Are bank does not provide loan easily we have to fulfill its requirements in some cases. They check your financial status if their requirements satisfy with your financial condition they will give loan otherwise they refuse, the interest rate may be high on housing loan and car loan. If you became insolvent and not able to pay the loan amount bank will seize your security asset. Students can also apply for loan as in U.S students rate of taking loan is very high. About two third graduates taking education loan in U.S, people taking loan are shown.

          Loan are very important to us as we can give money in installments and can buy anything and can incest or use wherever we want. Loan is taken in every country and are successfully useful for people to fulfill their needs.The only thing is that the interest is high but at useful stage it is helpful for us and can be taken for us in a positive way.