What is Loan?

A loan is a type of financial support that you get from the bank. There are two types of loans, secured and unsecured.

A secured loan is a type of loan which is only processed by the bank when you mortgage your assets which have an identical value to the total loan amount. On the other hand, an unsecured loan does not require you to pawn or mortgage anything, Loans have a fixed ‘due’ date, and after the specified date, the interest keeps adding up. So you have to be financially stable to afford a ‘loan’ from the bank.

There are different types of financial loans that you can get. Most of Banks provide car loans, home loan, student loan, home loan, and personal loan.