What is Loan? – Definition & Types of loans

What is a Loan? : A loan means taking money from someone according to their needs and fulfilling their needs and returning the money with interest, is called a loan. You can take a loan from a bank, a person with some money or you can take government. Be sure to check the interest rate of the loan from where you are going to take, because everyone has their own interest rate.

The interest rate is more or less depends on the type of loan you have, and for how long. So, first of all, we have to know what are the types of loans-

Types of loan

1. Personal Loan
2. Student Loan
3. Business Loan
4. Cash advances
5. Agriculture Loan
5. Home Loan
6. Gold Loan

Personal Loan

Personal loan is taken for marriage, home repair, holiday etc. Personal loans are given without guarantee. Because of this, the rate of interest of this loan is very high. I will give you this advice only when you are in great need of money, only then you choose personal loan, otherwise you do not take personal loan.

Student Loan

You can also call Student Loan as Education Loan. Student Loan Student applies for his studies. The student completes his studies with this money. Education loan is available at the lowest interest rate. Only students can apply this loan, not all people.

Business Loan

Under Business Loan, you can take a loan for your business. You can expand your business or run a stalled business by taking this loan. If you are a businessman then this is the best loan for you. There are a number of different types of business loans, including bank loans, mezzanine financing, asset-based financing, invoice financing, microloans, business cash advances and cash flow loans.

Agriculture Loan

Agriculture Loan is given to farmers in India, in which loans are given for irrigation, farming, crops or any other equipment. Apart from this, Agriculture Loan is also provided for animal husbandry, orchards, silk farming and flower farming. This loan is very good for the farmers.

Home Loan

Housing loan also known as a mortgage loan. Under this loan, you can buy a house, buy land, build a house and get the house repaired.

Gold Loan

A gold loan is a loan in which you give your gold to the bankers and the bankers give you the money in exchange for that gold and then when you have the money then you give your gold back to the bankers. Lets bring, this loan is considered to be the most secured loan. Under this loan, one can take money from the bank by giving his gold.