Banks borrow money from a set of individuals or entities and lend it to a different set of individuals or entities. They are licensed under the law to carry on this business and also offer payment systems through facilities like cheques, credit cards and internet banking.

When a bank accepts deposits, it is a borrowing for them. When they give loans for various purposes, it is lending. The difference between the interest it earns on loans and the interest it gives on deposits, less expenses, is its profit.



A loan is money you borrow which has to be repaid with interest. The interest rate and tenure of the loan, as well as the repayment schedule are pre-decided between the borrower and the lender. Most loans are given for a specified purpose and against an asset as a collateral.


Personal Loan

Personal Loan is an unsecured loan (short term or long term) given by a bank or NBFC given to meet the personal needs of their customers.


Gold Loan

You can get a gold loan by offering your gold or gold jewellery as collateral. The amount of the loan is related to the value of the gold. This type of loan has no restrictions on what you use the money for.


Short Term Loan

Short term loans are loans which as the name indicates come with a shorter tenure. Usually, the duration for a short term loan is one year or less.


Home Loan

You can take a loan to construct or buy your dream home. The bank lends you the money with the property you are acquiring as collateral. Usually, home loans have long tenures of five years and above going up to 30 years too.


Car Loan

Banks lend you money to buy a car. You can buy a new or used vehicle and it will serve as the collateral for the loan.


Property Loan

You are in need of money and own property? You can take a loan by mortgaging your property to meet your financial needs.


You can deposit your money in banks or financial institutions and receive interest from it. Fincover helps you find the best options on deposits!


Savings Account

Considered the safest saving option, a savings bank account helps you keep your money with a bank and receive interest for it. There is usually a minimum balance that has to be maintained. A savings bank account is more flexible than a fixed deposit as you can withdraw, receive or deposit money in it any time using many convenient options like internet banking, cheques and debit-cum-ATM cards.


Fixed Deposit

You can place a deposit with a bank and earn a pre-specified interest on your money. The returns on fixed deposits are higher than on savings accounts. Your money is locked up for the tenure of the deposit and you can either receive your interest periodically or opt to take it on a cumulative basis when the deposit matures. You can close a fixed deposit prematurely but there will be a penalty for it. You can also apply for loans and credit cards against fixed deposits.

3.Credit card

A credit card is a good alternative to cash for making transactions both online and offline. The advantage is that you can make purchases even when you do not have sufficient funds in your account and pay the credit card bill later, giving you a credit period between two to seven weeks usually.

Credit card spending gives you cashbacks and rewards too. Often there are discounts and deals for specified credit card transactions offered by the seller. At Fincover, we help you choose the best credit cards available in the market from India’s leading banks.