Unsecured Loan
Types of unsecured loans are:
1. Personal Loans given to well known credit worthy customers having adequate cash flows to repay such loans. Loan for miscellaneous expenditures viz.
Children's educational fees, Occasional medical expenses, Some family function, Going on holiday, Minor repairs or home renovations Purchase of consumer durables. As loans are unsecured, banks insist on a coborrower or a guarantor to join the borrower.
2. Credit Cards Loan: The card holder can use the card for
Purchases of goods / articles / services on credit in person or
Through internet or draw cash (as loan) through Automated Teller Machines (ATMs) – up to the credit limit sanctioned to him.
The card issuing bank sends the bills to the cardholder at the end of the billing period today the bill amount to the bank If the card holder fails to pay the dues by the due date, the bank will charge interest on the dues.
