annuadvisors

+91- 9990807807

+91- 9990807807

our services

what services we provide

What Is a Loan?

The term loan refers to a type of credit vehicle in which a sum of money is lent to another party in exchange for future repayment of the value or principal amount. In many cases, the lender also adds interest and/or finance charges to the principal value which the borrower must repay in addition to the principal balance. Loans may be for a specific, one-time amount, or they may be available as an open-ended line of credit up to a specified limit. Loans come in many different forms including secured, unsecured, commercial, and personal loans.

KEY TAKEAWAYS

  • A loan is when money is given to another party in exchange for repayment of the loan principal amount plus interest.
  • Loan terms are agreed to by each party before any money is advanced.
  • A loan may be secured by collateral such as a mortgage or it may be unsecured such as a credit card.
  • Revolving loans or lines can be spent, repaid, and spent again, while term loans are fixed-rate, fixed-payment loans.

INTEREST

Interest  have a significant effect on loans and the ultimate cost to the borrower. Loans with higher interest rates have higher monthly payments—or take longer to pay off—than loans with lower interest rates. For example, if a person borrows $5,000 on a five-year installment or term loan with a 4.5% interest rate, they face a monthly payment of $93.22 for the following five years. In contrast, if the interest rate is 9%, the payments climb to $103.79.

Types of Interest

Simple vs. Compound Interest

The interest rate on loans can be set at simple or compound interest. Simple interest is interest on the principal loan. Banks almost never charge borrowers simple interest. For example, let’s say an individual takes out a $300,000 mortgage from the bank, and the loan agreement stipulates that the interest rate on the loan is 15% annually. As a result, the borrower will have to pay the bank a total of $345,000 or $300,000 x 1.15.

Compound interest is interest on interest and means more money in interest has to be paid by the borrower. The interest is not only applied to the principal but also the accumulated interest of previous periods. The bank assumes that at the end of the first year, the borrower owes it the principal plus interest for that year. At the end of the second year, the borrower owes it the principal and the interest for the first year plus the interest on interest for the first year

 

Personal Loans

A personal loan can be used for just about anything. Some lenders may ask what you plan to do with the money, but others will just want to be sure that you have the ability to pay it back. Though personal loans aren’t inexpensive, they can be a viable option in a variety of circumstances. Here’s how to decide if one is right for you.

Auto LOAN—CAR Segment

An Auto Loan is taken by borrowers to purchase a new or used private or commercial vehicle. Auto loans are secured loans where the vehicle itself is used as a collateral. … Lenders fix interest rates depending on the type of vehicle and loan amount. Interest rates are usually fixed for auto loans.

Home Loans

A home/housing loan, also known as a mortgage, is an amount of money borrowed by an individual, usually from banks and companies that lend money. The borrower has to pay back the loan amount with interest in Easy Monthly Instalments or EMI’s over a period of time that can vary between 10-30 years depending on the nature of the loan.

Flexible and quick business loan for you

Very Low Rates
On Loans

99.9% Success
Rate Guarantee

Flexible with Your
Repayment

Our Benifits

Why Choose Us?

Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

Loan Process
90%
Consultency
80%
Payment Benefits
85%