Normally every person can face financial problems. It's not good to take a loan that has high interest so it is better to know about it before taking a loan.
Every bank will approach mainly 3 types of loans to its customers.
- Personal loan
- Credit card loan
- Overdraft limit
DETAILS ABOUT PERSONAL LOAN
A personal loan is a loan taken by an individual for his personal needs.
In a personal loan, you will get monthly EMI and interest that you have to pay on time. The payment time depends on the amount of loan you borrow. It might be 5 years or sometimes it may be 7 years also. It depends on your credit score.
Credit score works in the condition of your financial situation, your loan details, your EMI details, etc.
DETAILS ABOUT OVERDRAFT LOAN
The bank will give you some limit on the amount and open your bank account on that limit and on that account how much loan you borrow Only for that you have to pay the interest. This is known as the overdraft limit.
The interest rate on this loan is higher as compared to a personal loan.
The benefits of an overdraft limit are:
You can borrow the loan on your limit at any time after completing the first loan payment.
DETAILS ABOUT CREDIT CARD LOAN
It is the easiest loan you will get. If you have a credit card then you can go through this loan. You can pay this loan in the form of EMI. A credit card loan is given on the basis of your credit card limit. The time limit is short term and it is nearly 1 to 2 years. The interest rate is high compared to all the other loans.
The best among all the 3 loans is a credit card loan. Because it will get easier and it is more useful during the emergency period.
If you have the capacity to repay the loan within a short period then you can go through an overdraft limit. If you are repaying it within 6 months then definitely an overdraft limit is best. This loan is not good if you are taking a long period of time to repay the loan because as time increases the interest rate will also increase and this loan has High interest also.
If you want long-term to repay the loan then it is best to go through a personal loan. Because a personal loan gets a long-term term of time and also the rate of interest is decided earlier.
Buy the loan only if you are really needed because every loan contains interest and if you don't repay the loan then definitely your credit score will be damaged.
Business persons will go through the overdraft limit because they have a turnover and on this turnover, they will cover the limit.
DISCLAIMER:
This information is given with the purpose of helping society. We are not responsible for the misuse of this information because we have given this for a good purpose. We hope people will use this information as much as possible for their own good purpose.
CONCLUSION:
Here we have given all the information about the loans and it is better to choose the loan which is suitable for you. Before buying a loan please go through this information and choose the most suitable loan. Don't take loans which are not suitable for you and don't get into risk.
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