Money from the bank

Any bank can willingly offer a loan to potential clients or otherwise as a learner, student, employed/unemployed or an elder, as well as a company or organisation. It all depends on affordability of an individual or loan applicant. Suppose you require a loan of R50 000.00 from ABSA bank for a specific reason, the question you should ask yourself as the loan applicant is that how much extra money in addition to R50 000.00 will you be able to pay and over what period of time if payment will be made in potions? 

Loan from the bank has indeed both positive and negative aspects of it, it could be an advantage if the intention of the loan or motive for requesting the loan is of high importance and most importantly when you have a plan to return the loan with interests over a period of time. When loaning for an amount of money from finance service provider it’s not as lending money from a friend where you can make arrangements not to return the money with interests but in this case you are required to pay back the money at an additional interest calculated based on multiple factors.

Most of the people may request the loans from the bank to build homes or purchase vehicles and pay back the money from their monthly salaries over a period of time and in the end own the items they purchased with the loan. It is not at all the times where a person may need the loan in a form of cash and go around having the money as cash. It is often a situation where you need a loan in exchange of an item such as a house, a car etc. It is not advisable not to request nor consider taking a loan as an option especially for maintaining a life style or for feeding a habit. It’s better to work hard for keeping a lifestyle at constant or nourishment of habit as opposed to taking a loan. 

Suppose a new start up company request a loan from the bank to either buy equipment from the supplier or expand the business through funds received from the loan. Only if the loan can be paid back over period of time through the use of the equipment bought from the same loan or otherwise if the money can be made through the business it is therefore wise and good move especially when the loan has not gone into waste and benefits the business in the end. Taking a loan should not necessarily be considered a bad thing but only the idea or motive for taking the loan could be a negative based on the level of importance and factors previously mentioned above.