Reasons to apply for a loan

[Elswitcher]

1. Capital to invest in passive income.
2. Money to invest in a business you have leverage over.
3. To not go on an outing

 

[Good luck]

You apply for a loan for so many reasons.you apply for a loan to pay tuition fees that is almost due and there is no other alternative.you apply for a loan to start up a business or to buy properties or a car and you pay back gradually as you are receiving your salary.

 

[Mataracy]

There care many reason why people or business men do apply for loan . some time many people use to have idea if what to do but there is no capital to execute the project. Therefore one need to source for lian in order to accomplished the project.
Without obtain loan some times it may be very difficult to expand business at times.

 

[btaliat]

There are many reasons why people may decide to go for a loan. Other may have a genuine reason for obtaining a Loan while others only have flimsy excuse to just borrow a loan. Though, there are is nothing bad in obtaining loan so far there are ways the loans would be repaid. And the loan must be meant to do some productive businesses. Personally, I don't recommend loan for establishment of business but for the expansion of businesses.

 

[Bookwormlux]

There are so many reasons that make people to decide to take loans for a particular business they are interested in doing, but the fact still remains that you cannot just continue to take loan every now and then as it is not easy to repay this loans after you have taken them from the companies.

 

[Mellorando]

Personal loans are borrowed money that can be used for large purchases, debt consolidation, emergency expenses and much more. These loans are paid back in monthly installments over the course of a few months or upwards of a few years. It can take longer depending on your circumstances and how diligent you are with making payments. In some cases, you might want to try something else before taking out a personal loan, like a small purchase or negotiating a lower price or cost. Most personal loans have fixed interest rates, which means that your payments will stay the same every month. Personal loans are also typically unsecured, meaning there’s no collateral behind the loan. If you don’t qualify for an unsecured personal loan, you may have to use collateral to be approved, like a savings account or certificate of deposit. You can also ask a friend or family member to co-sign on your personal loan to help you get approved. Whatever your loan purpose, you’ll likely have several options available to you. Financing is available through credit cards, home equity loans and more. However, in many cases, personal loans are an ideal solution for consumers. Personal loans are often less expensive than credit cards, and funding is faster than with home equity loans

Below are just two reasons to get a loan:

1. Alternative to payday loan
If you need money for an emergency, using a personal loan instead of a payday loan may save you hundreds of dollars in interest charges. According to the Federal Reserve Bank of St. Louis, the average APR for a payday loan is 391 percent, while the maximum interest rate on a personal loan is typically 36 percent.
Payday loans have short repayment terms, usually by your next payday, between two and four weeks. This quick turnaround time often makes it difficult for borrowers to repay the loan by the due date. Borrowers are usually forced to renew the loan instead, causing the accrued interest to be added to the principal. This increases the total interest owed.

2. Emergency expenses
If you have a sudden emergency, like paying for a loved one’s funeral, using a personal loan could be a low-cost option. The median cost of a funeral is $7,640, which can be difficult for many families to afford. Surprise medical bills are another common reason to take out a personal loan, especially if your doctor requires payment in full. After you’ve negotiated with the hospital, doctor, and insurance company, you might need a personal loan to cover unexpected medical costs.

 

[Abigael]

People apply for loans for several reasons. But I am always against borrowing for the sake of luxuries and unnecessary wants. Those cause you to have a poor financial life. But those reasons like starting a good business, expanding an existing business or buying an asset are great. As long as you have a plan on paying it back. It is not even a great idea to take a loan for some basic needs like food or paying school fees. You should instead work to have a source of income for such needs. You may be taking a loan for them yet you don't have income or a plan on how to pay back.

 

[Kingsley]

I don't encourage people to access loans for business start-up or even for the resurrection of a dying business because in the case of a new business the owner of the business has little or no experience and starting such business with loans it will make it difficult for the person to be able to stand when faced with severe challenge. I have a neighbour we started off a business on fish farming and all was on loan. The B usinesss didn't go as planned and the man was heavily indebted and had to run away as he could not refund the funds. It is also very risk to start off with loans.

Then as for an existing business it is still fare since the business or it owners are no longer new in the system hence they must have gather some experience in handling challenges that might arise .

Then access laons for school fees is dangerous mostly if there is is no means of paying back the tuitions, there won't be much need to go for the loan unless it is very pressing. Else we should discard it.

But generally if we have a viable busines we can access loans.

 

[sincerem]

I only take loan when it is very important for me. And I wouldn't even take a loan which I can't cover up. I'll take a loan which I can cover up. Because, I know the implications when I fail to meet up with its deadline. Some loan companies simply go further to trigger the terms and conditions which you didn't care to read if you fail to meet the repayment day. That's why it is necessary to read the terms and conditions being agreeing to their loan services. I only take loan when I have no place to borrow at that moment to solve my immediate need that is too demanding. Apart from that, I don't see anything useful taking loans in my life since their repayment interest at times isn't pleasing. I've hold myself down never to collect loans either, to stay off from debts, which will bother me when the expiration period of the loan nears and I never budgeted to cover it up due to other issues popping up.

People start business with loan, some regret it with time, because they never planned it well before borrowing. And they failed to utilize the funds well to take the business higher, which made it to crash down.