Availing a loan for acquiring an asset is a legitimate activity for individuals as well as businesses. Banks and financial institutions such as NBFCs offer loans for a variety of purposes. Different types of loans include home loans, car loans, education loans, personal loans, consumer loans and business loans. Business loans include term loans, working capital loans and machinery loans among others.
From time to time, lenders offer special schemes to motivate businesspersons and individuals to apply for loans to meet specific requirements. Often, the government also comes up with schemes to promote a specific activity. One such activity pertains to priority lending for which the RBI issued
