Bank loans are not as easy as one could think. The first difficulty in getting a bank loan is its cumbersome documentation. You would be required to complete many forms as though you are registering as a university college student. This puts one off, especially if you are one who do not like repetitive task. You would be asked to supply the same information in many copies. If forms were to be completed online, this would not have being much of a problem, banks hardly ever ask you to complete forms online, they would prefer you to have you information on paper.
Bank loans are usually come with interest payment incorporated in the repayment plan. This makes the borrower pay more than the sum borrowed. Inflation is one of the most dreaded economic occurrence by borrower. Inflation erodes the value of money, and makes the borrower pay more that he actually borrowed. Default in the repayment of loan is better imagined than experienced. The embarrassment alone could make the defaulter think of suicide. The banks would not only go after loan guarantors, they also, foreclose on the property of the borrower if the loan has been used to acquire a property.