​Loan companies are financial institutions that provide various types of loans to individuals and businesses. They play a crucial role in the economy by facilitating access to funds for purposes such as purchasing homes, financing education, starting or expanding businesses, and covering unexpected expenses.​

Types of Loan Companies:

1. Commercial Banks: Traditional banks that offer a wide range of loan products, including personal loans, home mortgages, and business loans.​

2. Non-Banking Financial Companies (NBFCs): These institutions provide loans and other financial services but do not hold a banking license. They often offer specialized loan products and may have more flexible lending criteria compared to traditional banks.​