commonest reasons people get loans:When it comes to loans some people get helped a lot and you can agree with me that it is advantageous.
We have benefited in one way of the other through loans and lending institutions are much willing to give out loans to people. However, there are different reasons people get loans. Buying a car, paying university fees, buying a house buying land, refinancing other pre- existing loans, capital for business and home rehabilitation are among the common reasons get loans nowadays.
You may wonder why lending institutions advertise their loans based on the above list. Because they know their client’s borrowing statistics.
Getting a loan should be a calculated move because you will need to use that money on an intended purpose. Determine how much money you need to accomplish your goal.
Here are the commonest reasons people get loans
1.buying a car.
Due to demand on movements and other luxurious lifestyles you may need to get a loan for that purpose. When you do some proper scrutinization on transportation you may find that your personal vehicle makes a lot of sense. It is convenient to move with than public vehicles in sense that you make self programmed moves.Unlike public transport where people tell you what to do. People buy cars for different purposes. It can be a vehicle for business or just for luxury. Though sometimes a public transport is cheaper depending on the journey but applying for a loan to buy a car has remained common nowadays. It all depends on individual preferences.
Education has always been a good thing to try in life. If you find it difficult to raise money for your tuition think of applying for a personal loan. In some countries there are special institutions that provide student loans and their re-payment conditions are better than general lending institutions. Rehearse with your school on payments if they can allow you to pay in advance because you may end up spending that money on something else.
3.Buying a house
People have known the value of owning houses. Houses can be so expensive sometimes and you may think of getting a loan to buy one.
Go ahead you know a house is a stable fixed asset you will not regret having in your life. People get loans to buy a house just for rental purposes or for them to make it a home.
whatever the reason you can still apply for a loan to buy a house as long as you do not have enough cash with you.
commonest reasons people get loans
We know how nice it feels to have land. People are getting loans to buy land. Land is raw resource and depending on the size it can become anything you want.
You can build a house on it, build a factory on it, or it can be used for agricultural purposes. Agricultural purposes include poultry, piggery, or even cultivation if it is big enough.
For this reason, getting a loan to buy land is much better and I have seen many people going for that. So, it is something to try.
5.Refinancing existing loan
Some lending institutions can be so irritating with their greediness. They increase repayment period unnecessarily.
A loan that is termed for 3 years they keep on increasing period to 4 years. So to avoid such nonsense most people would prefer apply for a loan somewhere and pay the greedy institution. I know they have their own reasons why they increase repayment periods, but theft is attached no matter what.
sometimes it could be a certain benefit offered to a client by his bank and he may think of getting a loan and clear the other institution just to have that benefit in effect.
6.For rehabilitation works
Whether it is your factory infrastructure or home rehabilitation can demand a lot of money. Therefore, people tend to help themselves by applying for a loan. Maintenance on existing structures is always important because it reduces on costs for buying new ones.
Another common reason people get loans is for the purpose of starting a business. Not everyone has enough money for establishing a business.
Depending on the size of a business, people apply for a bigger or smaller loan. I encourage youths to do this because a business can kill the other reasons people get loans.
Business can raise money to buy land, house, rehabilitation and it can pay your school fees.
Getting a loan is not difficult but you need to have a sound reason for it. Remember you will need to pay back with an interest.
It is also brave to know which lending institutions are genuine, and which ones are not. You will find high rates especially these small lending institutions.
In Africa particularly there is poor monitoring of the small lending institutions.as a result they do not follow a right procedure for giving out loans.
Due to such reason thieves get loans using peoples details yet the authorities cannot do anything. You need to be careful with this outbreak of small lending institutions.