Good-Guy
VIP Contributor
Interest money refers to the sop-called "fees" charged whenever a money is borrowed by the borrower. It is a kind of fees that is paid by the borrower to the lender for the "service" of providing funds to the borrower. Interest is not seen as a good thing. I am a Muslim and my religion prohibits me to earn interest money. I have noticed that there are many negative effects of interest money.
Interest Can Damage Economy Of Tier 3 Countries
The only country that supposedly benefits from the interest money is the Tier 1 countries because they are the ones who provide loans to poorer countries. Whenever the poor countries borrow money, they tend to pay huge amount of interest. This means that the financial load is much higher on poorer countries. This leads to wealthy countries making more wealth and poor countries suffer from poverty and inflation even more.
Interest Money Discourages Borrowers From Seeking Loans
Whenever a person borrows money, they have to pay interest until or unless the borrower seeks interest-free loans. The high rates of interests usually make many borrowers reluctant to borrow money. Of course there are many other reasons why a borrower might not want a loan and one of them is the risk factor. But interest rates is also one of the biggest reasons why many people avoid loans.
Interest Can Damage Economy Of Tier 3 Countries
The only country that supposedly benefits from the interest money is the Tier 1 countries because they are the ones who provide loans to poorer countries. Whenever the poor countries borrow money, they tend to pay huge amount of interest. This means that the financial load is much higher on poorer countries. This leads to wealthy countries making more wealth and poor countries suffer from poverty and inflation even more.
Interest Money Discourages Borrowers From Seeking Loans
Whenever a person borrows money, they have to pay interest until or unless the borrower seeks interest-free loans. The high rates of interests usually make many borrowers reluctant to borrow money. Of course there are many other reasons why a borrower might not want a loan and one of them is the risk factor. But interest rates is also one of the biggest reasons why many people avoid loans.
