LOAN IN TIME HAS GREAT VALUE:
In eastern philosophy, the lending or extending a timely help is said to be handing over’. It is equivalent to timely handing over of clothing for tying at a person’s waist when his dress slips away unconsciously. This moral help is returned or handed over’ back with all the gratefulness.
Thus, a timely loan seems to be having a great value equivalent to saving of one’s respectability or decorum in the on going life process.
LOAN IS A FINANCIAL ARRANGEMENT:
Loan is in general lending money to a person for his personal, domestic or business needs. He is in a dire situation to acquire certain things for operating his personal, domestic life or business process. He wishes to get it accomplished with a money loan or financial arrangement from a friend, neighbor, relative or a money lender.
MONEY LENDING IS A BUSINESS:
The money lender may be an ordinary person who has surplus money or a part of the organized money lending institution. He could be a registered private money lender governed by the rules and regulations of the Government.
LOAN REPAYMENT IS PROMISED:
He issues loans to the needy persons on a legal document like a simple Demand Promissory Note signed by the loanee or the beneficiary. The beneficiary promises to pay back the loan in full or in installments with interest with in a stipulated period of time. This is generally signed on a revenue stamp that validates the simple document valid for three years in the court of law.
LOAN IS SECURED:
To avail a loan in urgency, the needy person will pledge gold in the form of an ornament and get a jewel loan. This is the fastest way of getting a simple loan. The bank may issue a loan amount up to 75 percent market value of the gold.
The money lender may be a non banking financial institution or a banking company being fully controlled by of the Negotiable Instruments act of the Government. The loan transactions of higher order will be controlled by these banking regulations and practices.
LOANS BY SIMPLE HYPOTHECATION:
The loan is a credit availed by the business concern to purchase any office infra structures or business stocks for retail selling. This is in general secured by simple hypothecation agreement to maintain the stocks during the loan period. As well it assures to repay the loan as the retail selling generates income periodically.
LOANS NEED MORTGAGE:
When the loan amount is huge, the money is secured by a mortgage of property in favor of the financing institution. The mortgage will be redeemed at the discharge of the loan after a period of time. There are a variety of loans to meet the different needs of persons, families, business concerns, commerce and industries.
WANTS ARE UNLIMITED:
Human wants are unlimited and the ways to fulfill the wants come with the means of personal loans, product financing, goods hypothecation, property mortgaging etc. There are very many peculiar ways of loans by credit cards or delayed billing or post payments in service industry.
LOANS ARE UNLIMITED:
The simple loan process may grow to an international level also to benefit the entire people of the Developing Countries from the World Bank. This is of course, to meet the massive requirements for the socio economic development of the Nations.
PERSONAL TO SOCIAL LOANS:
Hence, loan is a simple or huge financial arrangement to accomplish the human needs individually or collectively in personal, business or socio economic life processes. It is all about making a successful venture by an individual or a country with the resources available elsewhere.