There are scenarios which require a splurge of money or instantaneous money which makes us ask for loans from friends, banks, lenders, etc.
There are other issues which come uninvited like an accident, or some decease which require a huge amount of money for treatment. We all love our near ones, and are left with no other option then to borrow money from some one.
Recently my home maid get her daughter married. She took a loan from a local lender to make sure that no issues come in her daughter’s marriage. Though the interest rate she is paying is very high.
When I came to know about it, I informed her that the local lender is cheating by asking for such a high rate of interest. I advised her to check with any bank for a much better rate of interest. She replied that she is uneducated and do not want to get in the paper work mess of banks. She is happy with the high rate of interest and will pay it somehow.
That made me realize that the person’s in our society are also lending money at such high rates due to illiteracy. I suppose that the banks should make their system more simpler, so that they are people’s first choice when it comes to borrowing money.
People may borrow money when they want to start new business. Such scenarios are very risky, since if the business flops the so does the investment done on it. And if the amount invested is a loan, then you are supposed to pay it back anyhow. Situations like these can cause bad credits.
There could be infinite reasons for borrowing money like
* Business setup
* Crunch of liquidity in business
* Children education
* Accident
* Some disease
* Buying a car
* Daughter’s marriage
* etc.
The list can be very long, but the basic factor remains the same that asking for a loan or borrowing money is done in case of crucial requirements, and in such cases getting a lender quick and fast is very essential.