Loans, Credit and Debit Cards
In any legal loan, every obligation and restriction is enforced with the help of a contract which also entitles to place the borrower under additional restrictions, known as loan covenants.
In this highly inflated environment, the wealth for people is not equal to each other. The rich are becoming richer and the poor becoming poorer. For helping the poor people for their survival, banks play a very important role by providing different types of loans.
There exist various types of loans which are nowadays being offered by banks to individuals and small entrepreneurs and also to the large owners of the companies. Some of these types of loans are:
• Secured Loans: where the borrower Buy cvv pledges some of his asset like car or property as collateral for getting the loan.
• Unsecured Loans: are monetary loans which are not required to be secured against any of the borrower’s assets.
• Unsecured Credit Lines
• Long – Term Loans
• Short – Term Loans etc.
The best part of these loans is that they provide business people with an opportunity to do something good in the corporate sector.
The most known loan payment method is by fully amortizing payment, where the monthly rate for each month has the same value overtime.
The fixed monthly payment P, for a loan amount of L, for n months and a monthly interest rate c is calculated using a specified formula.
The various abuses occurring in lending are:
• Predatory Lending: in this the loan is granted to the borrower in a position to gain advantage over him or her.
• Loan Shark: this is a case where the money lender is not the authorized lender.
• Usury: here the lender charges excessive interest amount.
• Abuses can also take place in form of customer abusing the lender by not paying back the loan and may have an intention to defraud.
It is a form of plastic money which is widely used for payments facilitating the user to purchase the products and services on credit. It makes our lives simpler as we are not supposed to carry cash everywhere and just a swipe of credit card completes the payment.
The credit period for any purchase starts from the date of billing and not from the date of purchase.
The various benefits of using credit cards are:
• Free Credit Period: it offers a free credit period of 50 – 55 days from the date of billing cycle.
• Online Shopping: it helps us to buy products/ services online or even over phone 24×7.
• Advantage of various Branding Offers: these offers various schemes and discounts which are generally related with entertainment, traveling and shopping etc. which stands useful for the customer. These credit card companies have tie-ups with reputed brands helping them to sell their products and services at attractive prices.