Loans A Loan From Friends Or Bank Which One Suits You?

Rachael

Verified member
Taking a loan from friends might be best suitable most especially for someone who is using it to sort out some bills like; paying for hospital bills or paying school fees or any other related school activities. Most loans gotten from friends comes without interest rates but this always turn out to inflict the innocent money lender. It is so disheartening that borrowers tend to leverage on the good nature of those friends who loan them money without requesting any interest rate.

I have been in so many situations where I loaned money to friends yet, they refuse to pay, some would have to wait before I remind or pester them and some would bluntly make it look as though it is my responsibility to carter for their needs. In summary, they would feel that I do not have a right to ask for a refund because we are friends but I see such mentality as being shallow. Presently, I only give out what I can afford to loose. I have stopped the habit of lending money because at all times, the repercussions is not always healthy. Bank loans comes with interest and with a very limited time to repay which might not be fair to the receiving end.
 

Abigael

Valued Contributor
Personally, I am not comfortable anymore with any type of loan. This is because I clearly understand the Consequences of taking any loans. You end up in so much anxiety and pressure to pay back the loan. Another thing is that you are never financially stable with a loan. Every amount you get must be used to pay it back or else the interest rate will go high.

In the past, I used to get so caught up in bad debts. The main thing that led me to such debts was the desire to have luxurious things that I could not actually afford. Since then, I have trained myself to not give in to my urges. That has helped me alot in steering clear from debt. I am so proud of myself that I paid all my debts and I am not in any right now.

So my opinion when it comes to taking either loans from friends and family or from banks and lending institution is that none of them is better. A loan is just a loan. You still have the obligation to pay it back.
Though the loans from family and friends could be a bit better since you don't have to pay with interest and there is no specific payment date.
 

Good-Guy

VIP Contributor
Well, there are many reasons why I will never actually apply for a loan. First of all, taking loans is quite risky. If you start a business with a loan and if your business fails, you will get into bad debt. In majority of that cases, people have to mortgage their properties and apply for a loan. In case the business fails, they have to pay the loan somehow. Otherwise, their property will never be returned to them at all. However, I think that borrowing a loan from a family member would be much better. This is because you may never need to go through all that documentation and paperwork required by the bank when it comes to apply for a loan.

Please note that banks always try their best to make sure that a person could return the money back and they would require many things. However, you may not need it when it comes to asking for a loan from a family member or relatives. However, you must note that your family member or relative might lay down their own terms of conditions when giving you the money, so you must be ready for that. In short, getting a loan is never an option for me.
 
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