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