BUSINESS LOAN
The business needs sufficient capital to fund start-up expenses or pay for the expansion. So companies get business loans to get the financial help they need. A business loan is a loan term and the company is obligated to repay the loan. According to the small business administration, business owners need to understand how the loan works and what the lender wants to see from the lender before approaching the lender for a loan.
Cash Loan
Cash loans are a popular loan method among many people. You can get a cash loan within day People apply for cash loans daily. From this, you can emergency finance problems in your life
Bank Loan
Bank loan is the most common form of debt capital for a business.A bank loan provides medium or long-term financing. The bank specifies the exact period of the loan (3,5or 10
Years), the interest rate and the amount
Mortgage Loans
A loan secured by real estate or real state is called a mortgage. Instead of the homeowner receiving funds to buy a property or home, the lender promises to repay that buyer’s promise for a specific cost within a certain time frame. The mortgage is legally binding and gives the lender the right to make a legal claim against the lender’s home if the borrower defaults on the note, basically, the borrower owns the property or the home, but the lender owns it until it is fully paid off.
Small Business Loan
Small business loans, loans given by a lender to small businesses for various purposes. These loans have limited requirements and can help small business secure funds. A small business loan can provide other incentives to the borrower thus reducing the cost of doing business.
Unsecured Loan
Unsecured loans don’t have asset for collateral. These loan can be more difficult to obtain and have higher interest rates
For example,
- Credit card debt
- Personal loans
- Bank overdrafts
- Credit facilities or lines of credit
Loan Agreement
Loan agreement are documented by their letters obligation, agreements, promissory notes, and collateral that reflect the understanding between the parties involved
Contents of Loan agreement
The format of credit agreements varies greatly from industry to industry, but professionally drafted commercial loan agreement will incorporate the following term,
- Parties contract with their addresses.
- Definitions or interpretative provision.
- Facilities and objectives
- Conditions before use
- Repayment arrangements
- Prepaid and cancellation provisions
- Interest and Interest period
- Provisions relating to rough handing of any detention imposed
- Payment Provision
- Representation of borrower
- Representation of lender
- Borrower agreements
- Default events fixed by default
- Provision for deeds and liquidity damage
- For syndicated loans, provisions relating to the facility agent and the security agent and the voting of the lenders
- Formulas for calculations
- Provision for lender’s fees
- Provision for expenses
- Amendments and waiver provisions
- Agreements relating to changes in parties
- The processing clause
- Intensification clause
- Counter clause
- Addresses for ads
- Language allocation
- The choice of the rule of law
- Forum selection clause
- Appoint a process agent
Personal Loan
Many people use personal loans for many immediate actions. Because of it does not mention a main purpose. As such personal loans is an unsecured from of loan. But people don’t care about it because personal loans are multi-purpose loans and there is no limit of expending the loan. In fact personal loans help people to increase their loans.
Bad Credit Loan
A bad credit loan is a personal loan. Bad credit is given to reinsurers who have weak, bad or no debt. This loan is expensive. Generally, creditors charge higher interest rates than ordinary borrowers. Borrowers need to know their own credit score and then follow up on whether or not they have bad credit. They can decide it according to the lender’s score.
Personal Loan Interest Rates
| Bank name | Max. loan Amount (LKR) | Max. repayment period (year) | Min. Salary (LKR) | Min. interest rate |
| BOC | 3 millions | 7 | 30,000 | 13.5%-14.5% |
| Commercial bank | 5 million | 7 | 30,000 | 13.5%-17.5% |
| DFCC bank | 3 million | 5 | 20,000 | 15%-18% |
| HNB | 5 million | 7 | 50,000 | 14,5%-15% |
| NDB | 3 million | 5 | 32,000 | 15.75%-16.45% |
| NTB | 5 million | 5 | 60,000 | 15.5%-18% |
| Pan Asia bank | 3 million | 5 | 30,000 | 17.5% |
| People bank | 3 million | 7 | 30,000 | 14%-16.5% |
| Standard Charted bank | 10 million | 5 | 50,000 | 15.5%-18% |
| Union bank | 5 million | 5 | 35,000 | 16.75%-18% |
| Cargills bank | 5 million | 5 | 30,000 | 16.75%-18% |
| NSB | 3 million | 7 | 30,000 | 14% |
| Abans Finance | Varies | 5 | 30,000 | Varies |
| Alliance Finance | 5 million | 6 | 60,000 | 13.65%-14.5% |
| CDB | 5 million | 5 | 25,000 | Varies |
| LB Finance | Varies | 5 | 30,000 | Varies |
| Seylan bank | 5 million | 7 | 50,000 | 13.5%-16% |
Car loan
A car loan is a personal finance product where the financier funds the borrower to buy a vehicle for personal use. The loan is secured against the vehicle and the customer retains the full title of the vehicle at the end of the contract.
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Online Loan
Now people can apply for personal loans online. Following banks and financial institutions ready to give online personal loans according to their conditions and term.
- Commercial bank
- BOC bank
- Sam path bank
- Pan Asia bank
- Cargill’s bank
- HNB