Clean type in the Bank Loan Agreement

Aug 6th, 2022
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How to clean type in the Bank Loan Agreement

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The Clean Loan from Indian Overseas Bank is a secured loan that requires guarantors and is a really good financing option for individuals to meet any kind of personal or business needs, either planned or urgent.
Clean Loans means loans which have never defaulted, prepaid, claimed or cured throughout the entire history or up to the most current time.
A clean loan is a type of loan that does not have any conditions attached to it, such as the borrower having to provide collateral. This type of loan is typically unsecured and the borrower is not required to put up any assets as security for the loan.
Secured loans require some sort of collateral, such as a car, a home, or another valuable asset, that the lender can seize if the borrower defaults on the loan. Unsecured loans require no collateral but do require that the borrower be sufficiently creditworthy in the lenders eyes.
An annual clean-up is a banking practice that requires a borrower to pay off all balances of any renewable lines of credit and keep them at zero for 30 to 60 days or even 90 consecutive days during a 12 month period. Although the annual clean-up is a long-time tradition, its becoming less common nowadays.
A business that carries a clean-up clause on its revolving loan will have to periodically keep that balance at zero for a certain period of time. That means, money that could be used to help grow the business will have to go to pay down any outstanding debt on the loan, which would slow business growth.
Personal Loan scheme at IOB is known as Clean Loan. Loan can be availed by the salaried individual only.

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