Now Indian Banking  industry is growing and there are several banks Public sector Banks,Private sector Banks,and cooperative Banks are working in India.There was 14 major banks nationalized in 1969.this step led to a shift from class Banking to Mass Banking.

Indusland Bank was the first private bank to be set up in India. IDBI, ING Vyasa Bank, SBI Commercial and International Bank Ltd, Dhanalakshmi Bank Ltd, Karur Vysya Bank Ltd, Bank of Rajasthan Ltd etc are some Private Sector Banks. Banks from the Public Sector include Punjab National bank, Vijaya Bank, UCO Bank, Oriental Bank, Allahabad Bank, Andhra Bank etc.

ANZ Grindlays Bank, ABN-AMRO Bank, American Express Bank Ltd, Citibank etc are some foreign banks operating in India.

Some Major Banks of India are Listed Below

* ALLAHABAD BANK

* AMERICAN EXPRESS BANK LTD

* BANK MUSCAT (S A O G)

* BANK OF AMERICA

* BANK OF INDIA

* BARCLAYS BANK PLC

* CENTURION BANK LTD

* CITIBANK N A

* CORPORATION BANK

* DHANLAKSHMI BANK LTD (THE)
* DEUTSCHE BANK INDIA
* EXPORT-IMPORT BANK OF INDIA

* GLOBAL TRUST BANK LTD

* HONGKONG & SHANGHAI BANKING CORPORATION LTD (THE)

* ICICI BANK LTD

* IDBI BANK LTD

* INDUSIND BANK LTD

* SYNDICATE BANK INDIA

* INDUSTRIAL DEVELOPMENT BANK OF INDIA

* ING VYSYA BANK LTD

* JP MORGAN CHASE BANK

* PUNJAB NATIONAL BANK

* STANDARD CHARTERED GRINDLAYS BANK LTD

* STATE BANK OF INDIA

* STATE BANK OF INDORE

* CANARA BANK INDIA
* PUNJAB TRACTORS
* RESERVE BANK OF INDIA
* BANK OF BARODA INDIA
* FEDERAL BANK INDIA
* HDFC BANK INDIA
* UNION BANK OF INDIA
* YES BANK INDIA

Interest rate is a main measurement to measure a loan cheap or costly. Interest rates are the most critical of all the costs that you pay. Therefore you should go for the cheapest option. Beware of banking terms like flat interest rates that appear to be cheaper but are in fact the most expensive. For example a 7% flat rate would come out to an effective cost of around 13%. Therefore it’s better to choose a monthly reducing balance option than a half-yearly reducing option or flat-rate option. This means lower effective cost for the same stated interest rate. Interest-free loans are sometimes too good to be true but view them with suspicion.

There will also be other costs such as processing charges. You should ask for zero processing fees and zero-penalty for pre-payment option. If this is not available, then lowest cost would be better. Make sure you work out as to how much these other costs add up to. So even though the interest rate may be lower, it usually adds up to being expens

A certain amount of money that is given by one party to the other party with the expectation of it being fully repaid is called a Loan. The nature of this transaction is financial. All the specific terms and conditions that are a part of the transaction from either side are formally laid out in a promissory note.

The Lender always has the right to ask for an interest amount apart from the original amount that he had lent. The party that has borrowed the money has to specify the due dates. These days it is more common for the lender to specify the amount of the interest and due dates for repayment of the loan. At times the lenders also charge a late fee from those people who do not return the money on the due date.

Interest Rates and other charge

When you are considering a loan, repaying the loan is not all that you have to think about. There is the interest and many a time there are also other hidden costs like finance charges that you need to accommodate into your repayment plan. Most people with a traditional mindset avoid going for a loan unless it is absolutely necessary. Buying a new vehicle and a home are the two most common purposes for which people take loans. Another emerging trend is need for financing higher education. Banks and private financiers are the usual sources for loans. The interest rates for such loans can be either fixed at the time the loans are taken or may vary according to the prime federal rate.

Loan and Gift

Make no mistake- there is a wide difference between a gift and a loan. Imagine that a relative or a friend gives you some money say Rs.300000 to buy yourself a new car. This is a gift and not a loan because there are no terms and conditions of repayment. The giver cannot sue you in a civil lawsuit. But if the giver specifies that it is a loan, or if he expects even a  Rupee of it to be repaid, then it will be formally considered a loan.

 Formalities

Institutions like banks and private financiers always make sure to do the necessary paperwork before sanctioning loans to applicants. Even if loans are given to friends or relatives, it is always advisable to go for a formal agreement of the terms and conditions. In the absence of clear records in the case of friends and family, courts often have to spend ages in determining if the money was a gift or a loan. And this is all the more important when large amounts are involved.

When you apply for a loan to private institutions or banks, they employ certain criteria to determine your eligibility. The current income and assets along with the credit history of the person in the past are the standard criteria.