A loan is a sum of money that one or more individuals or companies borrow from banks or other financial institutions so as to financially manage planned or unplanned events. In doing so, the borrower incurs a debt, which he has to pay back with interest and within a given period of time.
Home loan
A home loan is a secured loan that is obtained to purchase a property by offering it as collateral. Home loans offer high-value funding at economical interest rates and for long tenures. They are repaid through EMIs. After repayment, the property's title is transferred back to the borrower.
Gold Loan
Gold loan (also called loan against gold) is a secured loan taken by the borrower from a lender by pledging their gold articles (within a range of 18-24 carats) as collateral. The loan amount provided is a certain percentage of the gold, typically upto 80%, based on the current market value and quality of gold.
Personal Loan
A personal loan is an amount of money you can borrow to use for a variety of purposes. For instance, you may use a personal loan to consolidate debt, pay for home renovations, or plan a dream wedding. Personal loans can be offered by banks, credit unions, or online lenders.
Types Of Bonds and Loans
Corporate Bonds are issued by companies to finance operations or expansion. Government Bonds are issued by national or local governments to fund public projects.
Municipal Bonds (Munis)
Issued by local governments for infrastructure development.
Business Loans
Used for expansion, working capital, or equipment purchase.
Personal Loans
For individual needs like education, home renovation, or emergencies.
FAQS
- What are loans?
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Loans involve borrowing money from lenders (banks, institutions, or individuals). Repayment occurs over a fixed term.
- What tax benefits do bonds offer?
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Some bonds provide tax-free interest (e.g., municipal bonds). Capital gains tax applies if you sell bonds at a profit.
- What tax benefits are associated with loans?
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Home loan interest is tax-deductible under Section 24(b). Education loan interest payments also offer tax benefits.
