La Police Vient de Découvrir La vidéo de vi0! Sur la Jeune fille : Un peu de Tension sur Presque Tout Le Territoire !

La Police Vient de Découvrir La vidéo de vi0! Sur la Jeune fille : Un peu de Tension Sur Le territoire Africain ! Oui Nous demandons de punir sévèrement tous ceux qui prennent initiative de faire ce genre de drame. Nous demandons qu'ils arrentent, sinon ils passeront le reste de leur vie en prison.

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How do bank loans work?

 Before understanding how loans work, let us see how Banks manufacture the loans or how banks get money to give out loans. Banks get money from four major sources..

 1- Capital: At formation as well as later, Banks raise money in the form capital from shareholders.

2- Loans: Bank take loans from other banks, multilateral organisations like IFC or Individuals . They can be in the form of normal loans or debentures and bonds.

3- Deposits: This is the major source of funds for the banks. Banks get retail deposits from individuals and companies.

4- Retained profits: Profits also forms part of cash formation.

Banks cannot use entire money in giving out loans. Part of the money has to be invested Government securities and deposits with Central Bank (RBI in India) as per local rules. Part of remaining money is deployed in giving out

loans.

Interest: To use the money of the banks , bank charge interest to the borrowers. Rate of this interest varies from borrower to borrower. Banks have something called Base Rate below which they do not lend to anyone. Rates are decided depending on quality of borrower, purpose of loan, Underlying asset of loan, tenure , government guidelines etc.

For instance if base rate is 10 % and if banks think home loans are safe then they may charge only 10.25% from home loan borrowers but 12 % from Gold loan borrowers. Similar philosophy works for corporate borrowers too. AAA+ borrower in Tata Group may be charged  9 % interest rate but shaky real estate company may be charged 18 % interest rate.

Repayment: Loans have to be repaid by the borrowers within given term called tenure of the loan. Repayment can work in various ways which is decided at the time of loan.

• EMI : Home Loan, Vehicle loan and personal loans are returned in the form of EMI, where all instalments are equal and each instalment has part principle repayment.
• Corporate Loans: Typically corporate loans have moratorium period ranging from 6 months to 2 years or more. This period is to allow the underlying asset to be operational. In this period interest is payable but not principle. After moratorium period is over, principle payment also starts. Typically principle repayment keeps on increasing every year ending at the tenure.
• Bullet Payment: In this Money is returned in one or more, equal or unequal instalments at the end of tenure. E.g. A ten year loan is repaid in three instalments at end of 8th, 9th and 10th year.
• Read more at https://www.quora.com/How-do-bank-loans-work