A liability (financial) is usually a sum of money a person or a company owes to another. Liabilities are settled over time through the transfer of economic benefits including money, goods, or services.
Loan is a credit vehicle in which money is lent by one or more individuals, organizations, or other entities to other individuals, organizations etc. in exchange for future repayment of principal amount and interest. Loans are advanced for various requirements like purchases, investments, renovations, debt consolidation and business ventures. Loan terms like finance charges, interest, repayment date and other conditions are agreed by both parties before any money is advanced.
Credit loans are classified into two categories.
- Open ended – This is also known as revolving credit. This can be used for purchases repeatedly that will be paid back monthly. Credit card is a type of open-ended credit or revolving credit.
- Closed ended – Closed ended credit is used to finance a specific purpose for a specific tenure. In these loans, consumers must pay monthly (usually) installments that include interest charges, until the principal is paid off. These loans are called as installment loans. Mortgage and car loans are examples of installment loans.
If any asset is kept as a collateral for the loan, it is called a secured loan. Loans without collateral of any asset are called unsecured loans. Credit card and personal loan are unsecured loans, whereas home loan and vehicle loan are secured loans. Below are different kinds of secured and unsecured loans.
- Home Loan
- Personal Loan
- Business Loan
- Mortgage Loan
The general documentation for applying for a loan is given for a quick reference. This is for a general understanding only and not to be construed as final and common.
Type of Document | Salaried Employees | Self Employed/Professionals |
Age Proof | Age Proof (PAN Card, Passport, Any other Certificate from Statutory Authority) | Age Proof (PAN Card, Passport, Any other Certificate from Statutory Authority) |
Address Proof | Residence Proof (Passport, Driving License, Telephone Bill, Ration Card, Election Card, Any other Certificate from Statutory Authority) | Residence Proof (Passport, Driving License, Telephone Bill, Ration Card, Election Card, Any other Certificate from Statutory Authority) |
Education Documents | Education Qualifications – Latest Degree | Education Qualifications – Latest Degree (for professionals) |
Financial Documents | Latest Salary-slips for 3 months | Certificate & Proof of business existence along with Business Profile |
Form 16 for last 2 years | Last 3 years Income Tax returns (self and business) with Profit & Loss Account & Balance Sheets duly certified/audited by a Chartered Accountant | |
Last 6 months Bank Statements (salary account) | Last 12 months Bank Account Statements (self & business) | |
Property Documents | Photocopy of Title Documents of the Property, Approved Plan | Photocopy of Title Documents of the Property, Approved Plan etc., |
Home Loan
It’s said that anything that’s well planned is half done. Most of our life goals are linked with finance.
Personal loan
It’s said that anything that’s well planned is half done. Most of our life goals are linked with finance.
Business loan
It’s said that anything that’s well planned is half done. Most of our life goals are linked with finance.
Mortgage loan
It’s said that anything that’s well planned is half done. Most of our life goals are linked with finance.