What do you mean by bank loan?

In simple terms, a bank loan will repay the same amount of money borrowed from a bank and interest.

Bank loans can be repaid in many forms such as EMI (a fixed monthly payment including interest and principal), monthly payment of interest and principal at fixed intervals, principal and interest can be repaid on maturity (usually for short term).

A bank loan is an amount of money that you take from a bank and agree to repay within a specified period. The longer you do not repay the loan, the higher the compound interest you will pay for the loan.

For example, the interest rate is 9%. You took 100,000.

1 year you paid $ 80,000: $ 80,000 x 0.09 = $ 7200; $ 80,000 + Answer = $ 87200

So for 2 years you have to pay $ 87200. So in reality you have borrowed $ 100,000 at the moment but you are now paying $ 107,200. So the more time it takes you to repay your loan, the more interest you have to pay, resulting in you losing more than you gain.

What is the benefit of a loan from a bank?

Okay, I don’t think that’s a great idea, though it’s practically desirable. Now a days banks are flushing with funds and looking for qualified borrowers. Therefore, one can choose depending on the situation.

Incidentally, I share my own experience about getting a housing loan in Mysore about five years ago. I wanted to own a site there and build a house but I had no choice. I have retired from a bank which has dozens of branches in Mysore. Didn’t want to go to the branch. I was praying to Goddess Chamundeshwari on the top of a hill in Mysore. Incidentally, I came in contact with Tata Finance and I accidentally went to their office in Kuvembunagar to inquire. I was given a loan which was more than I needed. I have my needs and ability to repayI have repaid the loan accordingly and built a dream house in six months. What I liked was that everything about them was professional and there was no corruption.

So it is better to take loans from honest, transparent and efficient institutions where there is no scope for corruption.

Hopefully I can shed some light.

You tend to complete all the legal formalities required to secure your loan and want to protect you from any illegal action by the bank or any third party. Procedures are followed according to law.

Your relationship with the bank improves and the credibility of your loan for the next period improves if you repay all the money on time.

Your CIBIL record enhances timely EMI payments and strengthens your banking history.

Whether it’s a mortgage or a personal loan, if you have submitted a copy of your home contract or a document like the original car paper, you don’t have to worry about its security. Since the bank has to repay the entire loan.

Based on your questions and what you described in the comments section, I don’t have an answer for you right now. You may or may not fully understand this

If you do not fully understand how your money flows, how your income is structured, what are the current risks and future risks of your business and how taxes and liabilities affect you, you do not know how to create your loan. What an effective rate for your businessWill work and through this your business can start working on the ground.

If banks view you as high risk, they may require higher rates and / or collateral, which may affect your capital expenditure. You need to know how it affects you.

Life after debt is much more technical and difficult than life before debt, if you have come this far without debt, which many do not, you have done well – I would advise you to continue as you are or start educating yourself for the benefit of your business. . What to do and how to build it. Consult a professional like a professional business developer or financial advisor who can give you the right advice on what a loan means for your particular business.

It actually depends on the amount of the loan, if it is a few thousand to a few million, your only advantage is that it can help you with your needs.

But if you have a debt of a few thousand crores then there is no limit to the benefits and if your debt is a few lakhs of crores then friend you can actually own the whole government.

What are the ways to increase the chances of getting a loan?

Don’t go for a loan because it will always put pressure on you to repay the loan with interest. No other interest-based economy or business can develop, but its image develops in such a way that it develops.

Start a small business with little money and gradually grow like a tree whose seeds, though small, grow year after year and bear lasting fruit.

Most of the successful entrepreneurs I have seen are those who started with little money and saved that money to expand their business.

The same goes for investors. They expect profit and wait for the pressure on you. So my advice is to choose a small business and let it grow on its own. On top of that it should benefit development.

There is always the possibility of a business failing and there are many reasons for falling into recession. In either case your lender and your investor will not tolerate the slow flow of profits or interest.

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