Bank Loans

                  You are a college student and you wanted to buy a car to travel to your college. You don’t have enough money so you decided to take a bank loan.

So how does bank loan actually works?

Basically bank loan is where bank offers you a sum of money , that you agree and guarantee to give back. Once you have a bank loan , you have a set amount of money that you can use within the terms and condition of the loan. You must repay the loan , and the lender always have the right to see that you use your loan money as you described.

Once you have the money . you will be owing the bank a debt. Debt have interest rates. It vary from bank to bank. You need to return back a sum of money as agreed  plus interest  by a certain date stated

.

In simple you get a amount of money from the bank to purchase what you need and return it back later on. Ultimately you had to pay back more than the item price itself.

 Now you can get your car first , and pay later.

Written by Kenneth Khew