A Loan Is A Type Of Debt

A loan is a type of debt. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower. In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time. Typically, the money is paid back in regular installments, or partial repayments; in an annuity, each installment is the same amount. The loan is generally provided at a cost, referred to as interest on the debt, which provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced by contract, which can also place the borrower under additional restrictions known as loan covenants. Although this article focuses on monetary loans, in practice any material object might be lent. Acting as a provider of loans is one of the principal tasks for financial institutions. For other institutions, issuing of debt contracts such as bonds is a typical source of funding.

Contents [hide] •

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1 Types of loans o 1.1 Secured o 1.2 Unsecured o 1.3 Demand 2 Loan payment 3 Abuses in lending 4 United States taxes 5 Income from discharge of indebtedness

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6 See also

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7 References

[edit] Types of loans [edit] Secured A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan. A mortgage loan is a very common type of debt instrument, used by many individuals to purchase housing. In this arrangement, the money is used to purchase the property. The financial institution, however, is given security — a lien on the title to the house — until the mortgage is paid off in full. If the borrower defaults on the loan, the bank would have the legal right to repossess the house and sell it, to recover sums owing to it. In some instances, a loan taken out to purchase a new or used car may be secured by the car, in much the same way as a mortgage is secured by housing. The duration of the loan period is considerably shorter — often corresponding to the useful life of the car. There are two types of auto loans, direct and indirect. A direct auto loan is where a bank gives the loan directly to a consumer. An indirect auto loan is where a car dealership acts as an intermediary between the bank or financial institution and the consumer. A type of loan especially used in limited partnership agreements is the recourse note. A stock hedge loan is a special type of securities lending whereby the stock of a borrower is hedged by the lender against loss, using options or other hedging strategies to reduce lender risk.[citation needed] A pre-settlement loan is a non-recourse debt, this is when a monetary loan is given based on the merit and awardable amount in a lawsuit case. Only certain types of lawsuit cases are eligible for a pre-settlement loan.[citation needed] This is considered a secured non-recourse debt due to the fact if the case reaches a verdict in favor of the defendant the loan is forgiven.

[edit] Unsecured Unsecured loans are monetary loans that are not secured against the borrower's assets. These may be available from financial institutions under many different guises or marketing packages: • • •

credit card debt personal loans bank overdrafts

• •

credit facilities or lines of credit corporate bonds

The interest rates applicable to these different forms may vary depending on the lender and the borrower. These may or may not be regulated by law. In the United Kingdom, when applied to individuals, these may come under the Consumer Credit Act 1974.

[edit] Demand Demand loans are short term loans that are atypical in that they do not have fixed dates for repayment and carry a floating interest rate which varies according to the prime rate. They can be "called" for repayment by the lending institution at any time. Demand loans may be unsecured or secured.[1]

[edit] Loan payment The most typical loan payment type is the fully amortizing payment in which each monthly rate has the same value overtime. [2] The fixed monthly payment P for a loan of L for n months and a monthly interest rate c is: [3]

[edit] Abuses in lending Predatory lending is one form of abuse in the granting of loans. It usually involves granting a loan in order to put the borrower in a position that one can gain advantage over him or her. Where the moneylender is not authorized, they could be considered a loan shark. Usury is a different form of abuse, where the lender charges excessive interest. In different time periods and cultures the acceptable interest rate has varied, from no interest at all to unlimited interest rates. Credit card companies in some countries have been accused by consumer organisations of lending at usurious interest rates and making money out of frivolous "extra charges". [4] Abuses can also take place in the form of the customer abusing the lender by not repaying the loan or with an intent to defraud the lender.

Different Types of Personal Loans In India Money always plays the most important role in human lives. The desire to fulfill personal needs come to everybody's mind but affording for that is not always possible. But in a country like India, that can't be a barrier to fulfill your and your family's desires. Because,

there are hundreds of banks and other financial organizations in the country who provide loans for personal reasons. These kinds of loans are known as personal loans. India is situating on one of the top positions in terms of providing these types of loans. Personal loans are simply those retail loans which are provided for the purpose of fulfillment of personal needs and expenses of individuals (prospective loan borrowers). The personal loans in India primarily are provided under five major categories. Though the loan amount and the rate of interest vary from bank to bank, but the purposes of providing these loans are same. Apart from the personal purposes, if someone possess the desire to establish his own business then also the Indian banks always welcome by providing the business start-up loans. Here, we will discuss about these kinds of loans. Consumer Durable Loans : - These kinds of loans are being provided for purchasing consumer durable products like television, music system, washing machines and so on. These are one of the unique kind of loans that are provided by the Indian banks to attract more and more people towards them. Under this category of personal loan, you will get an amount ranging from Rs.10,000 to Rs.1,00,000. But there are several banks which provides a minimum amount of Rs.5,000 and the maximum amount of Rs.2,00,000 under this loan. Banks provide this loan for maximum of a time period of 5 years. Festival Loans : - This kind of personal loan is provided to help people to fulfill their personal and family's desire during the festival time. Usually, leading banks of India provide this loan on the festive season at cheaper or discounted rate. This is the best type of loan for those people who want to avail a small amount of loan. Under this category of loan, banks do provide an minimum amount of Rs.5.000 and you can get an maximum amount of Rs.50,000 under this type of loan. But the festival loan is restricted up to 12 months. Repayment is to be done by equated monthly installments (EMI). The rate of interest on this loan varies from bank to bank. Marriage Loans : - Nowadays, this type of personal loan is equally getting popular among the people of urban and rural sectors. The loan amount depends on various factors including age of the applicant, security pledged by the applicant (if secured loan), repayment capacity of the applicant etc. Under the marriage loan, the rate of interest is governed by the prevailing market rate at the time when the loan is disbursed. Pension Loans : - There are several banks in India which take care of the old aged people as well. That's why the people who have retired from their jobs will also be able to avail personal loans. This type of loan is called a Pension loan. Under this kind of loan, the banks provide the maximum amount which is up to 7 to 10 times of the amount which was received as the last pension. Personal Computer Loans : - In this age of Information technology revolution, having an owned computer almost becomes a necessity. There are several Indian banks which offer loans that fulfill that desires of people. Under this category of loan, up to Rs.1,00,000 of amount can be borrowed. Banks also provide separate loan for purchasing of software and that can be provided up to an amount of Rs.20,000. The rate of interest is being

charged according to prime lending rate and there are some banks who charge extra 2% on the loan amount. So, from the above discussion, one thing is quite clear that whatever your purpose is and whenever you need to meet your financial expenses, the Indian banks are always ready to spread their helping hands to you.

AGRICULTURE LOAN Agricultural loans are available for a multitude of farming purposes. Farmers may apply for loans to buy inputs for the cultivation of food grain crops as well as for horticulture, aquaculture, animal husbandry, floriculture and sericulture businesses. There are also special loans to finance the purchase of agricultural machinery such as tractors, harvesters and trucks. Construction of biogas plants and irrigation systems as well as the purchase of agricultural land may also be financed through special types of agricultural finance. Here is some information about the kind of agricultural credit and loans provided by public sector banks in India.State Bank of India State Bank of India presents a wide range of financial schemes for agriculturalists. These schemes include crop loans, Produce Marketing Loan Scheme, Loan Against Warehouse Receipts, Kisan Credit Card Scheme, agricultural term loans, Land Development Scheme, Minor Irrigation Scheme, Farm Mechanisation Scheme, Financing Of Combine Harvesters, Kisan Gold Card Scheme, Land Purchase Scheme, Krishi Plus Scheme, Arthias Plus Scheme, Dairy Plus Scheme, Broiler Plus Scheme, Finance To Horticulture, Lead Bank Scheme and Agri Business Heads Scheme. The Bank also provides Micro Finance through Self Help Groups and loans through 30 regional rural banks. • • • • • • •

State Bank of Bikaner and Jaipur (SBBJ) - External website that opens in a new window State Bank of Hyderabad (SBH) - External website that opens in a new window State Bank of Indore (SBIR) - External website that opens in a new window State Bank of Mysore (SBM) - External website that opens in a new window State Bank of Patiala (SBP) - External website that opens in a new window State Bank of Saurashtra (SBS) - External website that opens in a new window State Bank of Travancore (SBT) - External website that opens in a new window

Schemes of Nationalised Banks 1. Allahabad Bank (External website that opens in a new window) - offers the Kisan Credit Card and Kisan Shakti Yojana Scheme. The Kisan Credit Card (External website that opens in a new window)offers the Kisan Credit Card and Kisan Shakti Yojana Scheme. The Kisan Credit Card is a unique scheme for farmers through which they can draw a cash loan for crop production as well as domestic needs from the card-issuing branch within the sanctioned limit. The

Kisan Shakti Yojana provides farm investment credit, as well as personal/domestic loans including repayment of debt to moneylenders. The permissible loan limit will be 50 per cent of the value of land or 5 times the net farm income, whichever is lower, less the outstanding amount, if any, in Agril. 2. Andhra Bank (External website that opens in a new window) - provides facilities to farmers like AB Kisan Vikas Card, AB Pattabhi Agricard, AB Kisan Chakra, rural godowns, agri clinics, agri service centres, self help groups and solar cookers. They also provide other schemes such as Kisan Sampathi, tractor financing, Kisan Green Card, Surya Sakhti and loans to dairy agents. 3. Bank of Baroda (External website that opens in a new window) - offers farmers the Baroda Kisan Credit Card. It also has schemes for the purchase of agricultural implements, heavy agricultural machinery like tractors, irrigation and other infrastructure. Bank of Baroda also finances the development of agri industries like horticulture, sericulture, fisheries, dairy and poultry. 4. Bank of India (External website that opens in a new window) - has a Kisan Credit Card Scheme that helps farmers raise short-term funds for agriculture and other farm-based activities, on an on-going basis, with very flexible and friendly repayment terms. It also offers an agricultural loan for development of agriculture related industries, purchase of machinery and other agricultural purposes. 5. Bank of Maharashtra (External website that opens in a new window) - offers agriculturists a Mahabank Kisan Credit Card and financial schemes for digging new wells, purchasing harvesters, livestock, vehicles and land. Repayment terms for different agricultural loans range from three to fifteen years. 6. Canara Bank (External website that opens in a new window) - provides Kisan Credit Cards. Limits up to 50,000 have no margin while those above 50,000 have a margin of 15 to 20 percent. Other than this, Canara Bank provides a wide array of financial schemes for different agricultural purposes. 7. Central Bank of India (External website that opens in a new window) - The Central Kisan Credit Card is a credit service provided to farmers on the basis of their holdings for purchasing agricultural inputs. Only those farmers having a good track record for the past 2 years with the bank as a borrower or depositor and who are not defaulters to any credit institution would be considered for loans. 8. Corporation Bank (External website that opens in a new window)- offers a range of loan schemes to farmers. They are the Corp Gram Mitra Yojana, Corp Arthias Loan Yojana, Corp Kisan Tie-Up Loan Scheme, Corp Kisan Farm Mechanisation Scheme and Corp Kisan Vehicle Loan Yojna. 9. Dena Bank (External website that opens in a new window) - Dena Bank has sponsored 2 Regional Rural Banks namely Dena Gujarat Gramin Bank in Gujarat and Durg Rajnandgaon Gramin Bank (DRGB) in Chhattisgarh. The bank has set up a Rural Development Foundation for training unemployed youth in rural areas. Other financial schemes of the bank are the Dena Swacch Gram Yojana, Dena Kisan Gold Credit Card Scheme and the Dena Bhumiheen Kisan Credit Card Scheme. 10. Indian Bank (External website that opens in a new window) - has a wide range of schemes for agriculturalists such as Swarojgar Credit Card, Gramin Mahila

Sowbhagya Scheme, Kisan Bike Loan Scheme, Yuva Kisan Vidya Nidhi Yojana and Indian Bank Kisan Card Scheme. 11. Indian Overseas Bank (External website that opens in a new window) - offers agri business consultancy services that include conducting feasibility and market studies, preparation of detailed project reports and formulation of rehabilitation packages for sick agro units. 12. Oriental Bank of Commerce (External website that opens in a new window) - It has two agricultural projects - the Grameen Project and the Comprehensive Village Development Programme. The Grameen Project involves disbursing small loans ranging from Rs. 75 onwards to mostly women. Training is also provided in villages in using locally available raw material to produce pickles and jams. The Comprehensive Village Development Programme focuses on providing an integrated package of rural finance to villagers to build up their village. 13. Punjab and Sind Bank (External website that opens in a new window) - offers a range of financial schemes for farmers like the Zimidara Credit Card, tractor finance scheme, drip irrigation scheme, Kheti Udyog Khazana Yojana, vermi composting scheme, horticulture clinic and private veterinary clinic with dairy unit scheme. 14. Punjab National Bank (External website that opens in a new window) - This bank has a special website called PNB Krishi (External website that opens in a new window) for agriculturalists. It gives details on crop practices, plant protection, farm machinery, market prices and other farming news and activities. The website also provides a list of financial schemes offered by Punjab National Bank on production credit, investment credit, composite loans, animal husbandry and farm mechanization. 15. Syndicate Bank (External website that opens in a new window) - offers a wide range of agricultural loan products such as the Synd Jai Kisan Loan Scheme, Jewel Loan Scheme for Agriculture, Syndicate Farm House Scheme, Finance for Hi-tech Agriculture, Development of Irrigation Infrastructure scheme, Syndicate 2/3/4 Wheelers Scheme and the Syndicate Kisan Credit Card (S.K.C.C). 16. UCO Bank (External website that opens in a new window) - This Bank provides the UCO Hirak Jayanti Krishi Yojana to meet the long-term credit needs of the farming community in rural areas for agriculture, allied activities as well as for personal purposes. Only farmers below 60 years are eligible to apply. Minimum quantum of the loan is Rs. 25,000/- and the maximum is Rs. 5 lakhs. 17. Union Bank of India (External website that opens in a new window) - Facilities provided to farmers include Kisan ATM Cards and special Kisan ATM Machines. These ATM's are easy to operate and do not require farmers to have a high level of literacy. They are voice enabled in the local language, have a touch screen monitor and work on a bio-metric authentication system like finger print verification. 18. United Bank of India (External website that opens in a new window) - The range of financial schemes offered to agriculturalists include the United Krishi Laghu Paribahan Yojana, United Krishi Sahayak Yojana, United Gramyashree Yojana, Gramin Bhandaran Yojana and the United Bhumiheen Kisan Credit Card.

19. Vijaya Bank (External website that opens in a new window) - This bank offers one comprehensive financial scheme known as the Vijaya Krishi Vikas (VKV) Scheme. This scheme provides a simple package to farmers to meet entire agricultural credit requirements such as crop production, investment credit and consumption credit. All farmers including owners, tenant cultivators, leased land farmers and sharecroppers are eligible for this scheme.

Schemes of Cooperative Agricultural Banks 1. National Bank for Agriculture and Rural Development or NABARD (External website that opens in a new window) - is responsible for refinance disbursement to commercial banks, State cooperative banks, State cooperatives, rural development banks, Regional Rural Banks (RRBs) and other eligible financial institutions. It also sanctions money through its Rural Infrastructure Development Fund for projects covering irrigation, rural roads and bridges, health and education, soil conservation and drinking water schemes. NABARD also offers a Kisan Credit Card Scheme and crop loans under the Rashtriya Krishi Bima Yojana. Banks and RRB's introduced the Kisan Credit Card Scheme of NABARD in their areas of operation. In this scheme eligible farmers are provided with a Kisan Credit Card and a passbook or card-cum-pass book. The revolving cash credit facility allows any number of withdrawals and repayments within the limit. This limit is fixed on the basis of operational land holding, cropping pattern and the scale of finance. Sub-limits may be fixed at the discretion of banks.

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This Kisan Credit Card is valid for 3 years subject to annual review. As incentive for good performance, credit limits may be enhanced to take care of increase in costs, change in cropping pattern, etc. Each drawl should be repaid within a maximum period of 12 months. Conversion or rescheduling of loans is allowed in case of damage to crops due to natural calamities. Security, margin, rate of interest and other details are fixed according to RBI norms. Bihar State Co-operative Bank Limited (BSCB) - External website that opens in a new window - Offers a range of loans and financial schemes to agriculturalists. Haryana State Co-operative Apex Bank Limited (HARCOBANK) - External website that opens in a new window - The bank offers crop loans, Kisan Credit Cards, cash credit against hypothecation of stocks and interim finance by way of cash credit. National Federation of State Co-operative Banks Limited (NAFSCOB) External website that opens in a new window - This federation offers a range of agricultural loans through member State Cooperative Banks, District Central Cooperative Banks and Primary Agricultural Cooperative Societies. Orissa State Co-operative Bank Limited (OSCB) - External website that opens in a new window - The bank has introduced Kisan Credit Cards in the S.T. Cooperative Credit Sector. It also organizes seminars on agri finance. OSCB has

17 Central Cooperative Banks and around 810 mini banks in different districts of Orissa. 6. Repatriates Co-operative Finance and Development Bank Limited (External website that opens in a new window)- This bank does not have any specific agricultural loan, but offers a range of financial products that can be accessed by people who wish to develop agriculture and related activities. 7. Punjab State Cooperative Agriculture Development Bank Ltd (External website that opens in a new window) - Initially, the bank only gave farmers loans to pay off old debts and purchase land. Today, the bank provides loans for various purposes like improvement of alkaline and saline lands, purchase of tractors, installing tube wells and other modern agricultural equipment. It also offers financial schemes for poultry development, dairy development, horticulture, floriculture, sheep rearing and inland fisheries. 8. Andhra Pradesh State Cooperative Bank Limited (APCOB) - External website that opens in a new window - has a loan portfolio that covers crop loans, medium term loans and long term loans for agricultural purposes. It also supports government sponsored District Rural Development Agency projects through IRDP loans and cooperative sugar factories, spinning mills, weaver's societies, employees' cooperative credit societies and other organizations. APCOB has also extended finance to apex cooperative institutions in the State such as APCO, MARKFED and GCC. HOME LOANS Home is where the heart is! Owning a home is a lifelong dream for most of the people. Not long ago, turning this dream into a reality was a daunting task for the common man with property rates going high all the time. But now, thanks to the proliferation of home loans and housing finance companies, one can aspire to own a roof over one's head. Not only home loans are easily available but with intense competition in the housing finance industry, companies are pulling out all the ways to lure the potential customers. Interest rates have drastically come down over the years and innovative home loan products have swamped the market. However, it is always advisable not to go for home loans blindly. In a situation where there are several lucrative offers to be chosen from, the best is to go for the creditor who is a long trusted name in the business. Also, before applying for home loan anywhere, it is worthwhile to go through the minute of the minutest detail of the company. If you are not good at business, you must consult some expert before taking any kind of loan from any party. As far as home loan is considered, make sure your EMI’s are well within your limit. Think and discuss hundred times before you opt for any plan so that your home remains ‘your sweet home’ and does not turn out to be an EMI nightmare. How to Choose a Home Loan There is no common formula to opt for a home loan. What may be good for you may not be good for someone else and what may not be good for you can prove to be an excellent plan for others. So, basically choosing the best loan plan means that you will have to explore that which home loan plan fits best to your needs in a particular situation. Choosing a Finance Company Once you have figured your requirements, your resources and your future plan, the next most crucial step would be choosing the housing finance company (HFC). It is very important to choose the financer with extreme care and proper contemplation. You must check out its past track record as you are planning to enter in to a long-term relationship with it. If you can, you must talk to few people who are availing this service already to know the execution of the terms RealEstate

Glossary

When one sets out to conduct any sort of property transaction, one is confronted by an avalanche of technical jargons related to real estate and home loans. It is imperative that one does get acquainted with these technicalities so as not to be duped by unscrupulous elements. Once one is acquainted with these terms, it would become relatively easy to read between the lines and understand the real meaning behind these complex business phrases. Information on Home Loans Buying a home is dream for many people. Owing to the rising price of properties, it has almost become impossible for an average earning person to buy a home on a lump sum payment. Therefore the concept of home loan has come in trend. There are plethora of housing finance companies and equal number of banks that offer home loans these days. Home Loan Process Owning a home gives a feeling of stability in life. However, with the steep rising prices of property in India, buying a house at a go is not a very easy task. However, this process has been made considerably easy by the home loans being granted by the umpteen numbers of Housing Finance companies and nationalized and private banks in the country. Types of Home Loans The dream of buying one’s own home is not an impossible task in India-thanks to the burgeoning housing finance market in the country. There are umpteen numbers of banks and HFCs in the country which have come up with attractive home loan plans in the country. Need for Home Loans Few decades back, buying a home was not a very easy task as there were hardly any lenders available to loan the ever increasing astronomical lump sum of money. However, with time, the rising property prices and the burgeoning housing finance market in the country, made the phenomenon of the home loans easy and the dream of buying a home possible.

Vidya Vardhini Scheme

Purpose: Pursuit of studies In India and abroad Approved Courses: Graduate and post-graduate courses in engineering, computertechnology, medicine etc.All vocational courses/job oriented diploma courses, recognised by govt and universities.Similar courses pursued in universities abroad. Full time post graduate research in any of the aforesaid subjects. Eligibility: Should be a citzen of India. For vocational training courses and job oriented course age of the individual should be between 15-28 years,and 18-30 in case of post graduate courses and/or studies abroad.The applicant should have a good academic record. For studies abroad, the candidate should have secured admission in a particular university after having appeared in the specific entrance examinations. The applicant should have secured a minimum of 50% marks in the major subject.In case of SC/STcandidates eligibility norms may be relaxed. Amount of loan: The loan could vary depending on the specific subject requirement.For studies abroad Rs15 lakhs.For studies in India Rs 7.5lakhs Margin Upto Rs 4lakhs -nil For Studies in India- 5% For studies abroad-15% Repayment Within 15 years from the first dateof disbursement, including moratorium period Contact : Delhi Tel: 3312654, 3311557 Bangalore Tel: 2212485, 2271130 Chennai Tel: 8270041, 8276143 Hyderabad Tel: 3315263, 3324487 Kolkata Tel: 2481973, 2485703 Mumbai Tel: 2023020

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cb

Central Bank Finance for Education Cent Vidyarthi Scheme Purpose: Aims at bringing Education within the reach of students and help them improve their prospects in life. Courses Approved For pursuing Graduate/Post-Graduate, Management/Job-oriented courses, Professional Courses of recognised Universities / reputed Institutes, Computer courses conducted by NIIT, APTECH, CMC, C-DAC with duration of one year and more. For pursuing Post-Graduate course in Science, Technology, Medicine, Engineering, Management courses, Law, Accountancy leading to Master's degree or Post-Graduate Diploma in recognised University abroad.

Eligibility:

Amount of Loan: Margin:

Should have consistent good academic record in previous examinations with marks over 60 % in 10th.& 12th or first grade in other cases. (For SC/ST Second class will be sufficient). India Upto Rs.7.50 lakh Abroad

Upto Rs.15 lakh

Up to Rs.4 lakh Over Rs.4 lakh - In India

No Margin 5%

Studies Abroad

15%

( Relaxation of loans upto Rs.50,000/-for SC/ST ) Rate of interest:

Upto Rs.4 lakh

PLR

Above Rs.4 lakh

PLR + 1% TOP db

Dena Bank Dena Vidya Laxmi Education Loan Scheme Courses approved a. Studies in India : • • • • • • • • • • •

School education including plus 2 stage. Graduation courses : BA, B.COM., B.Sc.,etc. Post Graduation courses : Masters & PhD. Professional courses : Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer etc. Computer certificate courses of reputed institutes accredited to Dept. of Electronics or institutes affiliated to university. Courses like ICWA, CA, CFA etc Courses conducted by IIM, IISc, IIT, XLRI NIFT etc. Courses offered in India by reputed foreign universities. Evening courses of approved institiutes. Other courses leading to diploma/ degree etc. conducted by colleges Universities approved by UGC/ Govt/AICTE/ AIBMS/ICMR etc. Courses offered by National Institutes and other reputed private institutions. [Banks may have the system of appraising other institution courses depending on future prospects/recognition by user institiutions.]

b. Studies abroad : • • •

Graduation: For job oriented professional technical courses offered by reputed universities. Post graduation: MCA, MBA, MS, etc. Courses conducted by CIMA- Loanon, CPA in USA etc.

Eligibility: The student should be: • • •

An Indian National Have secured admission to professional/ technical courses through Entrance Test /Selection process. Secured admission to foreign university/Institutions.

Amount of loan: Need based finance subject to repaying capacity of the parents/students with margin and the following ceilings. • •

Studies in India - Maximum Rs.7.50 lacs. Studies abroad - Maximum Rs.15 lacs.

Margin : Inland (studies in India) Upto Rs. 4 lacs : Nil Above Rs. 4 lacs : Studies in India : 5% Studies Abroad : 15%

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Punjab National Bank

Vidya Lakshyapurti Education Loan Scheme Purpose PNB's Education Loan Scheme is designed to provide better educational opportunities to bright and needy students and brings within their reach all types of education (general,professional,technical and vocational courses). The scheme enables all types of needy students (viz.students of plus 2 stage,graduation courses, post graduation courses, Masters & Ph.Ds, professional, technical , engineering, medical, veternary, law, dental, management, computer, vocational courses, courses like ICWA,CA,CFA, courses conducted by IIM,IIT,IISc,NIFT, courses offered in India by reputed foreign universities and all other types of courses offered by Govt./Semi-Govt/private institutions in order to meet the costs for their studies in India and abroad. Such courses would include regular, part time and correspondence courses. The costs include admission fees, books & stationery, instruments required for the course, monthly fees, examination fees,insurance premium for policy on life of the borrowing student,caution deposit/building fund/refundable deposit supported by bills/receipts, expenses like study tours/project work/thesis etc. required to complete the course, boarding and lodging expenses, and travel expenses/passage money including air fare for joining the course abroad. Eligibility 1) Indian nationals, in the age group of 16-40 years.For part time computer courses, applicants in the age group of 16-45 years are eligible. Applicants whose guardians have been appointed by the court, should not be less than 21 years; such students should have already passed atleast one public examination. 2) Students who have scored pass marks in their last qualifying examination and have secured admission in the courses mentioned above. 3) The parents/guardian should have regular source of income to the extent that they are able to repay the loan in case of need/unforeseen circumstances.There is no stipulation of ceiling on annual income of the parents/guardians. 4) Employed persons intending to better their prospects can also avail loan for improving their educational qualifications and/or receive training in modern technology in India/ abroad provided the education/training received by them in India/abroad affords prospects for their better employment.For such persons, 'NO OBJECTION CERTIFICATE' from their employers is a pre-requisite. Amount of Loan This is co-related to expenses involved in taking up the course and the expected earnings after qualifying, subject to a maximum of: For studies in India:

Rs. 7.50 lacs

For studies abroad

Rs.15.00 lacs

In case of part time computer courses, the extent of loan should not exceed Rs. 50,000/- per annum or fee fixed by the particular institutution (as per prospectus less concession,if any), whichever is less. .

Car loans If you want to buy a car but haven't saved enough money to pay cash upfront, you might decide to get a car loan. If you buy a car from a car yard, the car dealer might offer to arrange the finance for you, but you don't have to get the loan through the car dealer. They may charge a higher rate of interest than other places. It's often cheaper to get a loan from your bank or credit union. Interest rates and related fees and charges for loans can vary a lot so make sure you shop around for your car loan. Remember that you don't have to accept the finance offered by the dealers - you are free to shop around for finance and doing this often ensures that you get the best deal to suit your particular circumstances. It's well worth taking the time to compare the terms of loans and interest rates offered by different financial institutions to get the best possible deal. Only commit yourself to what you can comfortably repay. Before you sign up for a loan, make sure you understand:

• The type of loan on offer • All fees and interest rates, including insurance requirements • The monthly repayments and interest dates, and • The total amount you'll have to pay by the end of the loan period The Australian Securities Investment Commission's Financial Information Delivered Online (FIDO) (new window) website has some excellent car loan tips for you.

What will I need to budget for? You've found your dream car. You're happy with the price tag... but wait... there's more! The advertised price of a car is just the beginning. You need to budget for other compulsory expenses you'll incur, including:

• Car registration (new window) including mandatory third party insurance • Government stamp duty (new window) and transfer fees (new window) • The dealer's delivery charge (for new car buyers only) • The number plate fee (only in certain circumstances) Make sure you will have enough money to cover all of these expenses. You may also have to budget for optional extras like extended warranty, or a mechanical inspection by the RACV (new window) or Victorian Automobile Chamber of Commerce (new window). Don't forget to factor in day-to-day running costs into your budget. These may include:

• Insurance (new window) additional to what you paid as part of your car registration fee, which will cover damage to and caused by your car . Keep in mind that insurance can be costly and remember to include this cost in your budget • Fuel, regular services, spare parts and repairs - remember that some cars have a reputation for reliability, but they may cost more to service

What if I can't make the repayments?

If you fail to repay the loan, your security deposit will most likely become the property of the lender. If the car itself is the security, it can be repossessed and sold for less than what you owe on it. You can end up owing and paying money on a car you no longer own! If you're having trouble paying back the loan, it's important that you talk to the finance company as soon as possible to work out a mutually acceptable arrangement. Don't bury your head in the sand about it! Work out a way to manage your debt. See the 'Saving & spending' pages for more information on managing your debt.

What are my rights and responsibilities? Credit providers must tell you what your rights and responsibilities are under the Consumer Credit Code (new window). They must include all relevant information including interest rates, fees and commissions in a written contract. Read this thoroughly then ask questions to establish exactly what you are liable for.