| In the present day world, money speaks. It does not | | | | be returned back to the bank on a few conditions. |
| only speak, but helps a person to live the way he or | | | | The foremost condition is that one has to pay the |
| she wants. Bank loans have become very common | | | | bank debt in easy payment installments over a |
| phenomena in the contemporary period where the | | | | considerable period of time. The monthly money is |
| world is running on financial capital. Starting from the | | | | charged with an additional amount of money based |
| smallest of families to the biggest of companies and | | | | on a percentage of the actual money. The rate or |
| corporate sectors, all require money to make their | | | | percentage added to the amount that is supposed to |
| dream fulfilled, to make a plan work in its own way, | | | | be paid by the borrower is called interest. The actual |
| or simply to resolve a problem through money. Both | | | | money that the person took from a bank as a loan is |
| nationalized and multinational banks render great | | | | known as the principal.Usually the bank gives a loan |
| support to the individuals or groups in lending money | | | | to a person on the basis of a security. For example a |
| for certain purposes. There are various kinds of loans: | | | | person has to have sufficient amount of money in |
| (a) home loans, (b) personal loans, (c) auto or car | | | | any of his bank accounts. It may also happen that he |
| loans, (d) educational loans and many others.All banks | | | | or she has to keep one of their assets (mostly real |
| lend money to individuals and groups of individuals. | | | | estate properties) as a mortgage in order to procure |
| But all this money given out by banks is supposed to | | | | the loan. |