A sum of money that is borrowed by an individual or organization from a lender is referred to as a loan. It is possible to divide it up into three primary groups, including conventional, open-end, and closed-end loans, as well as unsecured and secured loan options.
Through lending to new enterprises, loans promote economic growth by expanding the total amount of money in circulation. For many banks, as well as certain shops who use credit facilities and credit cards, the interest and fees from loans are a major source of income.
Differentiates loans into four categories:
- fixed term
- And short-term agricultural and microcredit.
Explains how the interest on classified loans is kept track of and how they are categorized as “doubtful,” “sub-standard,” “interest suspense accounts,” etc. Sets out the rules for provision of maintenance.
Credit cards vs Personal loans
Personal loans require repayment over a predetermined amount of time but have interest rates that are significantly lower than those of credit cards. Credit cards offer continuous access to funds, and the only time you are charged interest is on the portion of the balance that isn’t paid off in a timely way.
Debit vs Credit
When a company lends money, that’s termed a debit balance, but when it borrows money, that’s considered a credit balance.
Fundamental seven loan types
The lender establishes a fixed interest rate that you must pay in addition to the principal amount of the loan.
- Various secured loan types
- Mortgage/ Home loan
- Loan secured by property (LAP)
- Loans against insurance policies
- Gold loans
- Loans guaranteed by shares and mutual funds.
- Loans secured by fixed deposits.
Again, Common Types of Loans
- Personal loans
- Auto Financing/ Auto loans
- Funding based on a homeowner’s equity/ Home loan
- Student loans
Process of Banks issue loans
- Personal loans from online lenders and bank loans operate similarly:
- In order to decide how much money to loan you and what annual percentage rate you qualify for,
- In order to decide how much money to loan you and what annual percentage rate you qualify for.
- Once you receive the loan, you will have to pay it back in equal monthly payments.
How your loan process in bank?
- Visit the branch of the financial institution.
- It’s time to get your hands on a personal loan application form and fill it out thoroughly.
- Be prepared to provide proof of age, income, residence, and identity.
- The lender will then examine the submitted paperwork and the applicant’s qualifications.
Debit or Credit card as ATM card
There is typically no distinction to be made between credit cards and debit cards in terms of how they are used. Both can be used at retail locations as well as while shopping online. On the other hand, there may be specific kinds of transactions or websites that only accept credit cards as a form of payment.
First credit cards in BD
ANZ Grindlays, now known as Standard Chartered Bank, issued the country’s first credit card in 1997. Credit cards are currently issued by the vast majority of banks and certain non-bank financial companies in the country. Despite having a rapidly expanding economy, credit card use remains low in Bangladesh.
ATM card Vs debit card
However, we must keep in mind that these are not the same cards. A bank ATM card is a PIN-based debit card that can only be used at ATMs. Alternatively, a debit card can be used for a wider variety of purchases. They can be used for purchases in many different establishments, including shops, restaurants, and even online and at ATMs.
Debit card as Visa or Mastercard
Visa and Mastercard both provide customers with a comparable set of fundamental features, so there isn’t much of a distinction between the two when it comes to entry-level cards. However, Mastercard’s World and World Elite level cards come with amazing extra luxury offerings, which may be appealing to consumers who make large purchases frequently.
Loans Banks in Bangladesh
In this section, we will talk about the many types of loans available in Bangladesh, such as personal loans, home loans, and auto loans.
Credit and Debit Cards in Bangladesh
This section will discuss the various card kinds that are offered in Bangladesh, with a focus on debit and credit cards.
Top Banks and Financial Planner in Bangladesh
The numerous Banks and financial institutions in Bangladesh that are essential to driving GDP growth and economic expansion will be covered in this section.
Online Banking Apps in Bangladesh
Discussing Bangladesh’s online banking apps. Maybe you need an internet banking app for business. Enjoy hassle-free online banking using online banking apps.
Currency Exchange Companies in Bangladesh
We will quickly cover the names, addresses, and phone numbers of all money exchange companies in this part. Finding the closest location of the money exchange company of one’s choice will be made easier.