Loans and Advances

There are two types of loans Secured and Unsecured loans. 

A secured loan is a loan which enables you to borrow against some form of security. 

An unsecured loan is a loan wherein the customer can borrow up to his net annual income (even joint). If the borrower is able to provide tangible cash security, the amount borrowed may exceed his income.

This is possible as long as the monthly repayments can still be considered feasible to meet over the term of the loan. In any case, before you apply for a personal loan or home loan, you must certainly approach the different banks for some initial information.

You should also evaluate seriously your financial capability, i.e. whether you be capable of paying the loan’s monthly instalments. It is very important that you take into consideration not only your current situation but also your future prospects. You should bear in mind that, in the case of a home loan, you are likely to repay the loan within the next 15 to 30 years. Ideally you should keep a safety margin for unexpected costs. 

  • What should I do when I decide to apply for a loan?

  • Should I opt for a short term or a long term loan?

  • Which documents will the bank require together with my loan application?

  • Will the Bank always accede to any request to grant a loan?

  • Once I am granted the loan of a considerable amount, will the bank make any requests?

  • How do I repay my home loan?

  • What happens if I don’t pay my instalments regularly?

  • What happens when I make early payments?

  • What is a Sanction Letter?

  • What is the Annual Percentage Rate of Charge (APR)?