What Are Some Of The Instances That A Loan Is Really Necessary?

Discussion in Loans started by onliner • Mar 24, 2017.

  1. onliner

    onlinerNew Member

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    Loans are probably one the most fundamental part of the finance sector. They are available in every other established financial institution for various allocations such car, business or for self-help groups.

    People also take loans for a variety of reasons ranging from property purchase, start up investment, education to catering for emergencies such as treatment. Some these reasons are quite valid in some occasions but others are totally uncalled for and plunge the borrower in a financial crisis with nothing to show for the loan they took.

    So, have you ever encountered a situation that only a loan was your only friend in need?
     
  2. Penny

    PennyActive Member

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    Certainly. I would never be able to pay cash for a home. I am not rich and I do not come from rich family. But my mortgage costs less than my rent did, and is insured against loss of income, and I am acquiring an asset. Win/win/win.

    I also think that a debt to get a trade qualification and drastically increase lifetime earning potential is well justified, just in an economic sense.
     
  3. Nakitakona

    NakitakonaActive Member

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    I am a graduate of commerce course and I have learned that credit (loan) is the life blood of a business. Small or big business ventures need to finance its operation. To do that, they have apply for a loan depending on their terms, either short or longer investment.

    For personal matters, people do need some financial assistance for their needs especially to finance or budget the tuition fees of their children studies especially in college. They do also need to complete their housing project or to finance their car acquisition. And some of those have been already mentioned here.

    I repeat credit could sustain the life of a business when it is properly and well managed.
     
  4. emberko

    emberkoNew Member

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    Absolutely @Nakitakona@Nakitakona! The only occasion I'm thinking for getting a loan is that to profit from that.
    I think getting a loan to buy an expensive TV is something you should avoid at any price!

    Never take a loan if you won't profit our of it.

    Of course it also make sense to use it for education.
     
  5. Jasmin Cottontail

    Jasmin CottontailActive Member

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    As much as possible, we avoid loans and credits because of the interests which are too high. We did had a loan before and we used it to start up a business and it was really a tough time for us since we have too many liabilities that needs to be paid. We ran out of funds so we don't have a choice but to close our business and put up a smaller one instead of getting another loan to avoid bad credit since we know that we will be having a hard time pulling up the sales.
     
  6. Gad

    GadMember

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    I rarely take loans. Whenever I do, it is for investment. I take the loan knowing that after a certain period of time I will be able to repay it And still have profit. It has worked before for me and I like it that way. However, I know of a few friends who applied for loans and literally spent the money on their stomachs. They would get drunk saying that the money was still a lot. Others take loans to engage in betting. That is very risky and of course, it leads to depression in the end when you are unable to repay the loan. We have seen cases of banks coming to collect collaterals after the time for repaying a loan elapsed. I would advise that if one takes a loan, it should be able to service itself( It should be invested in wisely).
     
  7. Zero

    ZeroActive Member

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    I don't like taking loans and being in debt, since i believe it will restrict my lifestyle and keep me on edge, i would only take out a loan when in desperate need.
     
  8. explorerx7

    explorerx7Active Member

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    Some people do take loans when it's unnecessary to do so taking a loan to purchase clothes and jewelry just because they may wish to compete with a friend's lifestyle. One necessary situation for someone to obtain a loan, however, is to get it to pay for an operation that may save a life or to correct an injury. This is certainly of the more credible reasons for obtaining a loan.
     
  9. Shine_Spirit

    Shine_SpiritActive Member

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    This kind of activity should be avoided at all costs (you always have to be very careful), but I think some situations where a loan really needed is in possible loss of property or some serious health.
     
  10. Zero

    ZeroActive Member

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    Exactly, i would never consider getting a loan to buy something of luxurious status that's beyond my budget, a loan should only be considered when buying property or for a serious health condition.
     
  11. Shine_Spirit

    Shine_SpiritActive Member

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    I find it a total irresponsibility you decide to opt for a loan if you do not really have a real reason for it... But unfortunately there are millions of people who do this. :(
     
  12. DavidLee

    DavidLeeMember

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    Popular instances I know and maybe was a course for me to take a loan was when
    -One want to Startup a business.
    -Emergency cases
     
  13. Alexandoy

    AlexandoyWell-Known Member

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    We were renting a house for 8k when we started prospecting to buy a house of our own. Based on the computation for a bank loan, the installment would just be 11k if we would buy a house costing 1.2 million. All figures are in Philippine pesos. When got a good deal with a house worth 1.6 million, we needed 400k as additional budget. We had to scramble for that amount by borrowing from our connections, some with interest and some with no interest. If not for those short loans, we would not have bought this nice house that we are now living in. By the way, the mortgage was fully paid last year so we are free from debt.
     
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