Loans and financing are popular ways to allocate money to the market so as to enable it to invest it in productive areas. A loan is a debt instrument. It is issued by a financial institution – a bank or some other credit agency. The issuing agency charges an interest over the amount loaned, which accrues to the agency as profits. Banks and other financial institutions offer loans from their assets which are generated by deposits made by customers. The rate of interest charged on loans is always higher than the rate of interest offered on deposits – this ensures the financial viability of credit agencies.
With time as we become a consumer society (many parts of the developed world are already consumer societies), various organizations are offering loans and financing to enable purchase of consumer items. Housing and construction are going through a boom phase, and developers and promoters are offering – in collaboration with banks and other agencies – handsome financing schemes to lure the prospective customer into becoming the customer. Automobile industry is one of the largest growth areas. Every few weeks a new model is launched, and a new market is breached, and thousands are becoming proud car-owners. This process is being facilitated through easy loans and a low interest rate (which is going at its historic low). Loans and financing have become important tools of market growth as the increasing transactions help in keeping the markets upbeat. Today, if one wants to buy something, financing is usually not a problem provided he has appreciable creditworthiness.
In this section of the webdirectory, we provide links to many loaning and financing resources.