Bank Loans – “Boon or Curse”

[aemilioday]

Banks loans can be either boon or curse depending on the candidate’s situation to repay it back. Banks offer loans and gets interest in refund. They basically add certain percentage on the principal amount and debits customer’s account on a monthly basis.

If a father is getting her daughter married and facing a financial crunch, then of course loan is a boon for his family. On the contrary, a loan bearer who just lost his job will reckon it to be a curse.

[lonelygurl76]

well, everything's got two sides of the coin
have you loaned form a bank before?
did you manage to pay off easily or still paying now?

[sugarglider]

The biggest trap to avoid with any kind of loan is one where you pay it back too slowly. Low repayment loans always seem like an affordable deal - you only have to pay back twenty bucks a week, so you think, 'wow! I can spare twenty bucks a week no trouble!'

The problem is, the more slowly you chip away at the principle loan amount, the more the interest builds up. In the long term, low-repayment loans are in fact the most expensive type of loan.

This can particularly be a problem if you're buying something which depreciates in value quickly, like a car. The car's value may very well be decreasing faster than you're paying for it. This may mean that after ten years of making repayments, you will still owe more on the car than it's actually worth. If the car is stolen or written off and it's only insured for its resale value, you could be making payments for several more years on a car you don't even have.

[hassen1]

Every one has a price so does every thing has a price too! Banks wouldn't lend any money if they are not profiting from the interest they get from you. However, it all depends on why and what for are you borrowing? If you are borrowing to invest in a venture that will ultimately pay you, then I suppose borrowing from a bank is alright. There again, your venture must be fairly secure. I would like to tell you something that happened a few weeks ago in Sri Lanka. A bogus BPO company offered people good returns for some work done on the web. The registration fee was about US$ 65/- for a monthly return of US$ 40/- guaranteed by a written contract for 15 months. Thus if you invest US$ 65/- for the registration, you will get US$ 40/- every month and in total, in 15 months, you would have got US$ 600/-. So the deal looked very attractive. Some people borrowed from banks and invested several multiples of US$ 65/-. The fraudulent company suddenly closed shop and vanished leaving over 5000 people standard. So the loan taken from the banks now become a major problem to the borrower. I trust you understand the pros and cons of borrowing!

[mikenakedde]

hi everything in life has a flip side

but loans and banks are as usefull to any

enteprenure as pen and paper are to an author.

or a claw hammer to handyman...

so how one chooses the right loan is crucial for their

ventures success.there is alot to be offered but the trick is

not to get caught in the "rat-race" of debt.

[foxiebaby]

uurrgghhhhh

i think i got what you mean, coz i'm in a debt race now, :(

silly youth-times, and bad credit card management brought me here thus far, and so i'm now in the race to clear off these debts,

i see business opporutinites here and there, but darn, ain't got the money to invest, and dare not ask for loans no more before i settle old debts,

sigh......it's definitely the rat race everyone hates!