Loan is a type of borrowings or debt. It may be money or something. Usually it contains two or more parties. One is loan giver and other is loan taker. The loan giver is called as Lender and loan taker is called as Borrower. Sometimes it also contains a third party known as guarantor for Loan.
As per the terms of loan the lender charge some percentage of amounts on excess of the principal loan amount from the borrower generally known as interest on loan. Interest is a pre decided term between the Borrower and the lender at the time of taking loan. Many Banks and financial institutions are providing different types of loans to the general public for different purposes like personal loan, car loan, education loans, cash loans, home loans, business loans etc.
Sometimes the loan may be interest free. That is called interest free loans. These types of loans are mainly given in friends/relatives/family circles to help the borrower for a short term.
As per the terms of loan the lender charge some percentage of amounts on excess of the principal loan amount from the borrower generally known as interest on loan. Interest is a pre decided term between the Borrower and the lender at the time of taking loan. Many Banks and financial institutions are providing different types of loans to the general public for different purposes like personal loan, car loan, education loans, cash loans, home loans, business loans etc.
Sometimes the loan may be interest free. That is called interest free loans. These types of loans are mainly given in friends/relatives/family circles to help the borrower for a short term.
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