Banks, Offices and other organizations, which are the holding our economy. In Pakistan, there are 1000s of Banks running on every street. Some are good at service, some are not satisfying, some are new at the side and some of them are the best. Banks best thing is that, they keeps your amount safe, and if they get robbed they again return you everything. But nowadays bank are becoming so vast that they are giving different facilities to the people. In finance, a loan is a debt provided by an entity (organization or individual) to another entity at an interest rate, and evidenced by a note which specifies, among other things, the principal amount, interest rate, and date of repayment. A loan entails the reallocation of the subject asset(s) for a period of time, between the lender and the borrower. In a loan, the borrower initially receives or borrows an amount of money, called the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the lender at a later time. The loan is generally provided at a cost, referred to as interest on the debt, which provides an incentive for the lender to engage in the loan. In a legal loan, each of these obligations and restrictions is enforced by contract, which can also place the borrower under additional restrictions known as loan covenants. Although this article focuses on monetary loans, in practice any material object might be lent. Acting as a provider of loans is one of the principal tasks for financial institutions. For other institutions, issuing of debt contracts such as bonds is a typical source of funding.
Loans are of different type. Like Mortgage loans, business loan, car loan etc. Some of the time banks offers loans like continuous. They constantly calls their customers for the loans. In past year we have seen that there are almost 39% calls of bank loans offer. The employees of the banks have good facility because their loan becomes easier to return. Like if a man take a car loan and so he will pay you every amount of your car and then on every month’s salary, bank will deduct their cost. And they only give the loans on requirement. Like you are an employee and you want loan but your salary is 20-30 thousand so they will give you short loan or else they will not give you any loan. They are so bad tempered people that if a man dies without returning they comes at the funeral and that moment they asks for their money. Well so these loans are good for the poor people like farmers who wants mechanism like tractor etc so they helps them a lot but the way they gives loans is not good. Like with extra money they give and then in return they take extra from you. Some Islamic banks follow good rules. So these banking system is now modernized because people who are in real need they utilize this for their works. Some of them take for business if they want to do business at high field. So what I can say is that it can help you in man ways but try not to take loans from bank because sometimes it become hard to return.
