ICICI Bank
June 14th, 2008 at 3:53 pm (Uncategorized, Loans, Bank reviews)
Among the services offered by banks are loans and overdrafts. What is the difference between them?
Overdrafts and loans. Overdrafts offer flexible borrowing to meet short-term needs, while personal loans are for fixed amounts and are more suitable for borrowing larger sums over a longer term. If you consider borrowing money, it is important to be sure you can afford the payback.
Overdraft is a ’safety net’ on a person’s current account. It allows borrowing money till a certain limit is reached. This is the case, when there is no money in the account. It is useful to cover short term cash problems. Some bank accounts offer a free overdraft service. In case there is no such a facility, a person can apply to the bank for an authorized overdraft. The decision of the bank is based on the person’s bank record. Sometimes it is necessary to pay a fee to set it up. A person has to pay back the overdraft plus interest. Rates differ between banks and can be fixed or variable.
With a personal loan an agreed sum is borrowed and is paid back with interest over a certain period of time. Interest rates can be either fixed or variable. A person normally has to stick to a payment schedule. There are two types of loans secured and unsecured. The difference is that the unsecured loan is based on the promise that the borrower will pay back. The advantages of the personal loans are the following you can generally borrow larger amounts than with an overdraft; you’re free to shop around - you don’t need a bank account; interest rates and charges are normally lower than for an overdraft; and you know exactly when the loan will be paid off. As for the disadvantages, so they are as follows: loans are less flexible than overdrafts; there may be penalties for paying a loan off early; you can’t normally miss a repayment.
ICICI Bank offers its clients the best conditions on loans and overdraft services.
ICICI Bank.
ICICI Bank is one of the largest banks in India. In addition, ICICI Bank is one of the first companies listed on the Indian stock exchanges. The bank was founded in 1994. The bank operates a network of almost a thousand branch offices and ATMs. ICICI Bank operates in eighteen countries including the United States, the United Kingdom, Russia, Canada, China, South Africa, the United Arab Emirates, etc. The bank offers a wide range of banking products and services. ICICI Bank serves corporate and retail customers in the areas of life and other insurance, investment, venture capital, asset management, and so much more.