What are low cost loans?
The term loan can only connect us to a type of debt that is sanctioned by a lender to a borrower. In a loan system the loan lender is a person who has ample amount of cash that he lends to a person in need and a borrower is the person who is in search of lump sum cash due to some emergency or financial crisis. In other words a lender is known as the creditor and the borrower is known as the debtor. 
The lender can lend money (low cost loan) to the borrower on the basis of two things that is either a guarantee or any collateral (in other words property as a mortgage) or any person who will be known as the guarantor (a guarantor should have properties more than the loan amount). The lender also makes one thing very sure that the loan that is lend to the borrower that should be returned in a decided span of time along with some rate of interest. The loans are named according to the purposes they are borrowed for. For example if the borrower borrows the loan for establishing a business then it is termed as business loans, it the loan is given to the borrower for buying a house then the loan is termed as a home loan, if the loan is given to the borrower buy a raw land or property then it is known as a real estate loan, if the borrower requires it to educate his children then it is known as educational loan and many more.
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