1. Banking Operations:
Accounts
Loans
Account:
A record of financial transactions for an asset or individual, such as at a bank, brokerage, credit card
company, or retail store.
TYPES OF ACCOUNTS:
Savings Bank Account
Savings Bank Accounts are meant to promote the habit of saving among the citizens while allowing them to use their
funds when required. The main advantage of Savings Bank Account is its high liquidity and safety. On top of that
Savings Bank Account earn moderate interest too. The rate of interest is decided and periodically reviewed by the
Government of India. Presently, the rate of interest is 3.5% compounded half yearly.
Savings Bank Account can be opened in the name of an individual or in joint names of the depositors
Current Bank Account
Current bank account is opened by businessmen who have a number of regular transactions with the bank, both
deposits and withdrawals. It is also known as Demand Deposit.
Current account can be opened in co-operative bank and commercial bank. In current account, amount can be
deposited and withdrawn at any time without giving any notice. It is also suitable for making payments to creditors by
using cheques. Cheques received from customers can be deposited in this account for collection.
Overdraft Account
An extension of credit from a lending institution when an account reaches zero. An overdraft allows the
individual to continue withdrawing money even if the account has no funds in it. Basically the bank
allows people to borrow a set amount of money.
LOAN:
A loan is a type of debt. In a loan, the borrower initially receives or borrows an amount of money, called
the principal, from the lender, and is obligated to pay back or repay an equal amount of money to the
lender at a later time. The loan is generally provided at a cost, referred to as interest on the debt, which
provides an incentive for the lender to engage in the loan.

2. Types of loans:
Personal loans
Home loans
Mortgage loans
Educational loans
Vehicle loans
Personal loans:
A personal loan is a short-term loan to assist you with your finances. A personal loan is a type of debt
which is made for personal, family, or household use, and which is neither a business loan nor a long-
term mortgage loan. The lender loans money to the borrowers. The borrowers pay back this amount,
usually but not always in regular installments. This service is generally provided at a cost, which is
referred to as interest on the debt.
Mortgage loans:
A mortgage loan is a loan secured by real property through the use of a mortgage note which
evidences the existence of the loan and the encumbrance of that realty through the granting of a
mortgage which secures the loan. However, the word mortgage alone, in everyday usage, is most
often used to mean mortgage loan.
Educational loans
A Educaitional loan is designed to help students pay for university tuition, books, and living expenses. It
may differ from other types of loans in that the interest rate may be substantially lower and the
repayment schedule may be deferred while the student is still in education. It also differs in many
countries in the strict laws regulating renegotiating and bankruptcy.
Vehicle loans

3. Car Loans are designed for those who wish to finance a car for personal use. It is the way you
can borrow money from future. A car loan can give you immediate use of the car of your choice
in exchange for regular payments over an agreed period of time.