Majority of Pakistani people are only aware of very few banking loan products.Over the years concept of banking remained to use for deposits and cash loan only but ever since the digital era came the banking loan products became wider and split into further categories in order to fulfill demand of different clients .
Car loans : A general loan given by bank to purchase car from third party .This caters the demand of those who are unable to buy new from bank or don’t have enough affordability to buy new car.
Personal loan : This is a type of loan which has different definition,bank to banks because some offer it as amount ranging from 2 to 8 lacs normally ,some banks gives 2 to 3 salaries in advance as form of personal loan .
Small business/collateral loans : These type of loans given to people who want to borrow money either to start their business or any other loan these loan can be ranged from 4 to 50 lacs depending on collateral offer to against the money borrower wants to borrow.
Home finance :Now this is something which is changed in significantly in recent years less then a decade ago House building finance was offered at very low period of time (you have five to 10 years pay of the loan you have taken from the bank .But now banks are offering loans similar to Europe and american style ones which can be extended to 25 years depending on the type of deal client wants from the bank.
Micro loans: Since the normal above loans i have written have some tough requirement and only caters the demands of rich usually .There are clients(people) which are unable to get anything from regular big banks in order to meet the huge crowd of people missing out on regular loans ,micro credit institutions and banks were setup these banks gives loans to people who want to borrow very low amount like 10 to 20 thousand only for a short period of time also ,Micro loans are of different types the can ranged from rupee 30(Mobile phone pre-balance loan) to 4 lacs depending on clients demand .These loans don’t have any collateral linked to them and they can also be given for business purposes these are the loans that contain huge interest almost 40% in some loans due to heavy risk involve in them .
Student Loans : Yes student loans if you are a Pakistani reading this post then this is something new for you,Because national Bank of Pakistan ,UBl,ABL,HBL,MCB are offering interest free student loans with the backing of government of Pakistan.This is highly monitored scheme by State bank which offers support to young prospects having financial constraint in their academic pursuits .They loan amount comes with suitable time period in which client can payback easily .