Sometimes we want to start new things like new business and buy certain things like a car, but we haven't the enough money or we don't want to spend our savings. In that situation people borrow some money, they can borrow individually or in groups. Like in case of a car, an individual person wants to  buy it borrows the loan individually. In case of large business, the persons involve in that business borrow loan together means in a group. 

There are 3 components of Loan:

1. amount borrowed

2. interest

3. duration (time in which the person repay the borrowed money with interest)

Most of the people prefers borrowing money from the Banks like SBI, PNB, Uco etc.

There are many types of loan:

1. Home Loan

2. Vehical Loan

3. Education Loan

4. Secured Loans

5. Unsecured Loans

6. Gold Loan

7. Business Loan

8. Personal Loan etc.

Eligibility to get loan differs on the basis of the Loan Type.