Reasons why you shouldn’t take loan

[Laurasulivan]

I am sure that all of us here knows what loan is all about, I am not trying to badmouth the fact that loan can be of help in some cases but my point is that it is not always safe.
Some of the reasons why one should not take it is because of the interest on it, and there is something also called collateral. There is always more to it but you wouldn’t know until you are really in it

 

[Augusta]

i always write that new businesses or startups should forget about loans from financial institutions especially in the first 2 years of starting the business. I think the banks understand this now and they have made it a principle not to be giving loans to new businesses. You have never done the business before so how are you sure you would be able to sustain the business and use the loan to develop it more. if one needs some money then. getting it from ones savings, from friends or family would be better. At least you can use it for a long time before you think of refunding.

Loans from banks or any financial institutions come with high interest rate. So if you starting out a business with a loan you would bhe using the little profit that you are supposed to put into the business to pay the interest of the loan. So where would you then have the money to reinvest into the business. With this if you are not careful the business will collapse

Another thing with loans is that you would need to present a collateral, if you do not have it then you can't even get the loan which is not sane with good friends.

 

[Richee84]

Just as we know that there is nothing that have advantage that also don't have it own disadvantages, loan is a very good form of financial back-up in time of financial challenges. There are several reasons why is not advisable to take loan and some of the reasons are stated bellow;
If u know u are talking the loan purely for direct consumption and it won't be use to generate back income to ur account.
Loan should be taken if there is mist to repay back the loan without any hindrance.
Loan should not be taken if it won't be use for the purpose of which is been collected for. Most people collected loan and decide to use it for other person reason and this will defeat the purpose of collecting the loan.

 

[Kingsley]

I know many are of the opinion that accessing loans is not bad, and that it has numerous advantages, well when we look at the positive side of it we might want to agree with them saying that loans can be accessed and used to finance a business project which will in turn yield profits that will technically make us richer than our pre-contractual state. Infact some very big business organizations also go out of their way to access huge loans so as to expand their business space and scope, all in the bid to increase profit. This does not rest on businesses alone, also government both the federal, state and even local level, make efforts to access loans and they all claim to channel the loans into capital projects that will not only better the lots of her citizens, and they also claim those projects will boost the economy and improve the standard of living of her citizens. But in all these plans, promises and projections of both the government and individuals that accesses these loans, at the end what dom we notice? We discover that those loans are not put to good use and end making the people more impoverished and some of those businesses liquidates and become bankrupt. All these is due to poor management. Hence it is better to aviod laons if you can't manage it well.

 

[btaliat]

Just like the poster, I don't always subscribe to the idea of securing loans but most time, we don't have other alternative than to secure loan. That's the main reason for most people securing loans.

There may be many reasons to secure loans but there will always be one million reasons why loans should not he an option. Below are the reasons why loans should never be an option.

There is always uneaseness for someone that borrow loans. The person will be thinking more of how to repay his debts than on how to make the business move forward. This will make him not to concentrate on his business.

There is tendency of having high interest on our loans especially if the amount is much. The interest may hinder the business owner to make reasonable profit as ijenwill he repaying the loan with his profit.

There is tendency of losing collateral to the laonee especially if the condition of the loan is not met .

 

[Abigael]

Some of the reasons that people should not take loan include;

1. If you don't have a plan on how to pay it back, you will end up living a life full of frustration. This is because you are stressed about the unpaid loan. Therefore, only take a loan after laying down realistic plans on how to pay it back.

2. When taking loans to start a new business, you may end up running the business with so much anxiety. This is because you are not really sure if the business will be successful so you pay back the loan. That is why I prefer to start a business with other sources of capital. Then only take loan when expanding an already established business.

3. Incase you default on paying back loans, you end up having so much negative consequences. One of them being that you will get a negative credit history that will deny you many opportunities in future. Another one is that you will loose the good relationship you probably had with your lender. Therefore, only take a loan when you are really sure that you won't default.

Looking at these reasons on why you should not take loans, I would like to insist that you really be calculating before taking any loans. You should be sure that you have a solid plan of using it wisely and being able to pay back.

 

[eldavis]

Taking loans simply means you are borrowing form your future income. Meaning you are hoping to pay back the loan form money you have not gotten yet but you hope to get it. What if something goes wrong? How do you pay back the loan.
Taking loans puts you under pressure, which could in turn lead to stress and from there it could cause other medical issues as well, not to mention the effect it might have between you and your family.

 

[Sotherefore]

Taking loans simply means you are borrowing form your future income. Meaning you are hoping to pay back the loan form money you have not gotten yet but you hope to get it. What if something goes wrong? How do you pay back the loan.
Taking loans puts you under pressure, which could in turn lead to stress and from there it could cause other medical issues as well, not to mention the effect it might have between you and your family.

Sometimes taking a loan in most cases is not likely to be a bad idea but some people who lacks the proper planning and preparation might just believe that taking a loan is just the best way without doing proper analysation to find out how this loan can be applied into their business to achieve the best success

Personally if I am interested to start up a business I won't really concentrate on how to get a loan to do anything because getting a loan to start up any business now to me is not really encouraging, i rather work to raise the required money that is needed to start up a new business I am interested of.

Loan is really good in most cases but people are using it wrongly thereby suffering the consequences of not applying it wisely. They might go to jail or prison because of the unfulfilled loan agreement.

It can also lead to business collapses if proper care is not taken , that is why we just have to be careful , and we have to calculate every steps we are following most especially when we are established or when we are about to establish our business , failure to do so might result in loss.

 

[Immilash]

realize many are of the assessment that getting to advances isn't terrible, and that it enjoys various benefits, well when we check out the positive side of it we should concur with them saying that advances can be gotten to and used to back a business project which will thus return benefits that will in fact make us more extravagant than our pre-legally binding state. Infact some extremely enormous business associations likewise make a special effort to get to immense advances in order to extend their business space and extension, all in the bid to build benefit. This doesn't lay on organizations alone, additionally government both the administrative, state and surprisingly nearby level, put forth attempts to get to credits and they all guarantee to channel the advances into capital undertakings that won't just better the loads of her residents, and they likewise guarantee those tasks will help the economy and work on the way of life of her residents. In any case, in this large number of plans, guarantees and projections of both the public authority and people that gets to these advances, toward the end what dom we notice? We find that those advances are not effectively utilized and end making individuals more devastated and a portion of those organizations sells and become bankrupt. Every one of these is because of helpless administration. Subsequently it is smarter to aviod laons on the off chance that you can't oversee it well.

 

[Mandy96]

Well loan in some ways are very helpful to people that needs it sometimes. What I can just say is that one should not take it as an habit because it could ruin one’s business or even life. Imagine someone that runs an establishment only on loan. If you ask me, I would say that it is a very bad idea for an entrepreneur to build an empire on loan, it is just like living a dream in reality, if you are not careful, you might collapse when you are ready to take some rest thinking you are successful. This has ruined so many life and it has also helped so many at the same time. I just think that it is as bad as much as it is as good

 

[Good-Guy]

Taking loans is something many people consider an essential part of any business. There are many kinds of loans that are taken by an organization or any individual person for various reasons. For example, a student might take a student loan for studies. However, I do not think that taking a loan is always a helpful thing for various reasons. One of the biggest reasons why I am against taking loan is the high amount of interest rates being charged on loans. Secondly, many organizations provide loans but the deadline of repayment is never extended or it is just too short.

If a person fails to pay the loan, then the property or any mortgage gets confiscated. In fact, any person would not even get a loan in the first place without mortgage. If you start a business using the borrowed money and if you suffer from losses, then you will find yourself in big trouble. Your bad debts will increase badly and as a result it can have an impact on your credit history if you fail to pay the loan back at the right time. These were some of the main reasons why I dislike loans and I will never borrow money.

 

[funmi]

The rate at which people go all out to access loans this days is becoming very alarming, in fact some people access this loans for purposes that is very distinct from making money or business purpose. And some that are accessing the loan for purpose of running a business still don't use it for the business purpose for which they claim to need the loan.

Amazingly some people working in some corporate organization also access loans some for the purpose of buying a car or building houses. At the end they get to complain about how they were embarass by the loan companies and organization.


For some people it has become a norm for them to access loans from those loan applications. And you see them running all around looking for how to payback because many of them used the loan for other purpose other than the original purpose of setting up a business or maintaining a business.


Although sometimes I don't really get to blame them because the financial situation is very terrible and people are finding it very difficult to even have a square meal let alone feed properly. But general I don't see accessing loans as the only options that we have as this is getting people indebted.

 

[Rachael]

There are many reasons we should not take loans most especially when it has to do with setting up a business. Loans is one one of the fastest or quickest way in raising capital for a business but the aftermath is always unbearable. Taking up loans in demands a collateral and also has interest rates attached depending on the sum you applied for and the duration to repay the money. The disadvantages of taking loans always outweigh the advantages and it is always pressurizing. Some people are fund of taking loans and putting up their assets as a form of collateral and one disadvantage is that, when you fail to repay on time, the asset is retrieved from your ownership and it would be recorded as a bad credit history and this could affect your chances in taking or having access to loans in the future. Instead of taking loans, the habit of saving money should be encouraged because this can go a long way in solving our needs and borrowing from acquaintances would be preferable because there will be less pressure and at times, zero interest rates. I will not recommend taking of loans especially when there is no source of refund.