Is it advisable to take loan from banks?

Bookwormlux

Valued Contributor
When it comes to sources where one can get money to run a project or establish a business, banks tend to be a better option because they are registered with government agencies and trusted, so you are sure of the fact that you ain't collecting illegal funds that may be proceeds of fraudulent activities as it is the case with taking loan from individuals (especially those who have no formal source of income).

Despite the fact that banks are trusted, I still read negative things about the happenings with taking loan from banks. Some of which are; high interest rate, especially when you are not able to repay in time, they do not take it likely with defaulters and would do away with your property you used as collateral.
What do you think, is taking loan from banks a good option?
 

Abu4exel

New member
Yes, it is advisable on one side and on the other side not. It advisable when you have a business to do that could yield a fruit for you and not taking loan for just consumption sake because when its time for someone to pay back and he or she is unable to do so, the bank will come for that person and it will be a kind of disgrace but when you invest with the money, you will be able to pay back the loan from that investment.
 

Sanmight

New member
I haven't tried sourcing for loans from bank before but from people's experiences, it is a bad line of thought to consider given the exorbitant interest rate, collateral request and many requested signatory bottle necks.

As an alternative, looking into Microfinance banks for loan is a better option. They have a good track record on this. I understand taking credit and loan facilities are good for expansion, but for a start-up business, care should be taken. Be wise about taking up loan offers pal, avoid baits in disguise.
 
D

Deleted member 27583

Guest
I haven't tried sourcing for loans from bank before but from people's experiences, it is a bad line of thought to consider given the exorbitant interest rate, collateral request and many requested signatory bottle necks.

As an alternative, looking into Microfinance banks for loan is a better option. They have a good track record on this. I understand taking credit and loan facilities are good for expansion, but for a start-up business, care should be taken. Be wise about taking up loan offers pal, avoid baits indisguis

When it comes to sources where one can get money to run a project or establish a business, banks tend to be a better option because they are registered with government agencies and trusted, so you are sure of the fact that you ain't collecting illegal funds that may be proceeds of fraudulent activities as it is the case with taking loan from individuals (especially those who have no formal source of income).

Despite the fact that banks are trusted, I still read negative things about the happenings with taking loan from banks. Some of which are; high interest rate, especially when you are not able to repay in time, they do not take it likely with defaulters and would do away with your property you used as collateral.
What do you think, is taking loan from banks a good option?
Yes the best place to get loan will still remain banks,because they are more safer than any other platform who lend out money. Your collateral are safe whit bank when you loan money from them. But make sure the purpose you want to loan money for is a legit one,coz if not you end up losing the business,be sure you will lose ur collateral as well.
 

Mataracy

VIP Contributor
Sourcing for loan in the bank is very good only if the interest rate is not too much. Sometime when you go to some banks the way they will treat you after taken the loan you will never want to take loan again in your dare life. To the extent that the interest of the loan will almost be more than the profit you will make at the end of the business.
While some financial institution has a soft loan that will not give you any problem till you complete the payment.
 

btaliat

VIP Contributor
The fact is that a business that's done without the external money like borrowing from friends or loans from the bank has not expanded enough. So borrowing from bank to expend businesses is a welcome idea for me. But the only problem I have with them is the huge collateral and high interest that they always demand from the customers. And they don't always grant loans to some newbies maybe because they always fear of repayment. So if the money is judiciously used, nothing bad in that.
 

Cryptoon

New member
When it comes to sources where one can get money to run a project or establish a business, banks tend to be a better option because they are registered with government agencies and trusted, so you are sure of the fact that you ain't collecting illegal funds that may be proceeds of fraudulent activities as it is the case with taking loan from individuals (especially those who have no formal source of income).

Despite the fact that banks are trusted, I still read negative things about the happenings with taking loan from banks. Some of which are; high interest rate, especially when you are not able to repay in time, they do not take it likely with defaulters and would do away with your property you used as collateral.
What do you think, is taking loan from banks a good option?
Taking a loan from a bank may not be a bad idea depending on what you want to do and how urgent it is. If you are confident that if it works out you'll really gain a lot and you also have collateral, then why not try your luck?

But you should always be careful when getting a loan and if possible, involve a lawyer in order to avoid unnecessary inconveniences like illegal confiscation of your properties before the loan date expires.
 

Ahxmed

Active member
Bank is the best place or institution to get a loan. Its most convenient despite their difficult requirement in getting a loan. If you have a business that is registered it will be much easier to get loan from the bank.
 

Alexandoy

VIP Contributor
Over here banks are the most trusted when it comes to loans because, whether you believe it or not, banks give the lowest interest rate. If you compare to the pawnshop that charges 5% interest per month plus a collateral then the bank's interest rate of 16% to 19% per year is way much lower. The only problem with a bank loan is the collateral and the capacity to pay.
 
Top