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Loan Accounts
Next, let us discuss Loan Accounts.
As the name suggests, loan accounts are those where a bank lends money to its customers and charges a certain interest in return. Sometimes these loans are provided for a specific purpose such as a home loan to buy a house, car loan to purchase a car or sometimes they are provided with no specific intention in mind such as a personal loan. Loans have been explained in detail in Unit 6 of this module.
Common Guidelines for Opening and Operating Bank Accounts:
Continuing with our previous example of Satish, now that he had a basic knowledge of bank accounts, he wanted to know what he needed to do to open an account.
The lady at the bank explained to him that to open a savings bank account, one needs to provide the following documents:
- Identity proof such as Aadhar card, PAN card, or Passport.
- Address proof such as Aadhar card or Passport or Voter ID card or Utility Bill.
- A photo
With the help of the above documents, a bank account can easily be opened. In case of the non-availability of any such document, the bank representative will suggest documents required as per the rules and regulations of the Indian banking system.
With the help of the above documents, a bank account can easily be opened. In case of the non-availability of any such document, the bank representative will suggest documents required as per the rules and regulations of the Indian banking system.
In the case of opening current accounts, customers will need to submit documents of their business. The required documents also depend upon the nature of the business entity.
Original copies of all the documents have to be shown to the bank representative, and the signed photocopies of the same are required to be submitted.
Banks also offer nomination facilities where-in customers can designate someone to inherit the money in case of his/her demise. This facility should always be exercised, especially if there is only one holder in the bank account. The nomination facility is available for individual customers only. The nomination facility has been discussed in detail in the upcoming modules.
