Lending from bank

Discussion in 'Private & Conventional Lending Discussion' started by waseem59, May 9, 2014.

  1. Sunflogun

    Sunflogun Well-Known Member

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    That is something important, selecting the right bank. Not only the interest rates matter sometimes, but also the quality of the service. If a bank is efficient, eventually that is worth paying a little more for.
     
  2. Corzhens

    Corzhens Senior Investor

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    Getting a loan from a reputable bank is not that easy because they have so many requirements. There are the so called lending investors (small companies that are usually a proprietorship) where you can secure a loan fast and easy. Like a house mortgage, you only have to give them the title and sign the application and loan contract - transaction is done within the day. However, they charge a high interest rate with other fees like service charge and tax charge. One case in point is a mortgage of 250k that was not paid in 2 years, the amount ballooned to 410k.
     
  3. David Ruiz

    David Ruiz Member

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    It’s not just about the loan been easy or difficult, but we must remember the requirements, I have seen my cousins destroying his well settled life just because of getting into loans, as you said the interest rate was so much that he was not able to manage and he got into massive debt, I am not aware of exact figure, but it was so serious that he had to take IVA-Advice.co help to get it sorted out and he is currently in 5 years plan to get things settle.
     
  4. Corzhens

    Corzhens Senior Investor

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    Oh, that's sad to hear, a loan that ruined his life. I think it is a matter of managing your finances. Some people take out a loan for a necessity like house repairs and some for health reasons like hospitalization. I know of someone who takes out a loan for money to spend. That attitude of borrowing for spending is prevalent in credit card users that's why the bad debts is very high in credit card statistics because credit card users tend to buy without considering their capability to repay.
     
  5. pwarbi

    pwarbi Senior Investor

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    It's becoming harder and harder these days to get any loan from any bank as before they looked at your ability to pay, along with your history of payments in the past, your credit score.

    These days they also take into account your ability to pay, credit history and anything that might make it difficult for you to pay in the future, have you a safety net just in case you do lose your job, what savings or assets you have for example, and although nobody can see into the future, including lenders, they're less and less willing to take a chance.
     
  6. Sunflogun

    Sunflogun Well-Known Member

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    Loans are hard that is true, but it has been worse. Sure, the days from 10 years ago are very hard to return, but even so things have been improving slowly.
     
  7. 111kg

    111kg Guest

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    In my country it's exactly the opposite. You can go with your ID card to a local ING Bank, ask for a loan, they will instantly check your financial details instantly, and based on what you earn and other financial details (such as the historic of your previous credits), you could go out with the money in no more than 20 minutes. It's pretty easy here to take a loan, if you have a decent salary, but it's way harder to give the money back.
     
  8. JR Ewing

    JR Ewing Super Moderator Staff Member

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    Low rates also cause banks to lend less and take less risk on borrowers. And legislation like Dodd-Frank also makes it harder for many to get loans from banks, since banks have made adjustments to the ways they do business to offset DF's rules that often actually make it riskier for the banks.
     
  9. Sunflogun

    Sunflogun Well-Known Member

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    Banks are taking less and less risks that is true, but that just make credit more expensive and inaccessible to most people.
     

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