The Other Faces Of Loans

The Other Faces Of Loans



The other faces of​ Loans

People often perceive loan as​ a​ negative thing .​
To be in​ debt is​ seen as​ not only having no money but also a​ desperate attempt to​ have money .​
What people do not realize is​ that owing somebody money is​ not necessarily a​ bad thing .​
It is​ what you​ do with the​ money you​ owe that will determine its value.


Loans help a​ great deal in​ keeping the​ economy growing .​
Countries,​ in​ fact,​ borrow from one another to​ finance projects that would help provide jobs for its people .​
With the​ right use of​ the​ borrowed money,​ the​ loan can triple and even quadruple .​
This is​ what most businessmen do .​
They borrow money to​ fund projects,​ the​ earnings of​ which,​ they will keep for themselves while paying back the​ principal .​


Let’s face facts .​
Not everyone can afford to​ finance a​ really big project or​ to​ start a​ new business .​
In today’s business world,​ one needs money to​ earn money .​
Loans function to​ help people who are short in​ cash but big in​ ideas take their dreams into action,​ hoping against hope that the​ business or​ project will come into fruition,​ thereby helping other people as​ well .​
Can you​ imagine Bill Gates not getting a​ loan when he was putting up Microsoft?


Home Equity Loan


There are different kinds of​ loans in​ the​ market .​
The most common of​ which is​ the​ home equity loan,​ where people borrow from the​ bank and put up their homes as​ collateral .​
What is​ also good with this type of​ loan is​ that it​ is​ tax deductible .​


College Loan


Another type of​ loan that is​ the​ college loan,​ which students who do not have enough money to​ pay for their education,​ avail of .​
Some universities offer up to​ a​ hundred percent student loan while others offer varying percentages .​
Often,​ a​ student is​ asked to​ pay for a​ small percentage of​ the​ loan while studying while the​ rest of​ the​ loan will be paid even after graduation when the​ student is​ already working .​
To help students with outstanding loans,​ some universities also provide part-time jobs inside the​ universities .​
They will often be assigned to​ help in​ the​ school’s various service buildings such as​ in​ the​ gym or​ in​ the​ library .​
Others are given jobs as​ assistants to​ teachers in​ class or​ in​ laboratories .​


Agricultural loans


Some government agencies and other private institutions also offer loans that will help in​ the​ improvement of​ farms in​ the​ countryside .​
The Town and Country Credit Union for example offers loans that would help increase production through the​ improvement of​ farm operations .​
Loans may also cover the​ purchase of​ farm and ranching equipment as​ well as​ in​ the​ increase of​ livestock .​
Similar to​ housing loans,​ agricultural loans may also be given to​ people who are planning to​ purchase farming estate.


Agricultural loans especially help farmers in​ times of​ devastation such as​ in​ the​ aftermath of​ a​ hurricane or​ any disaster that led to​ the​ destruction of​ crops and livestock.


Auto loans


Though it​ is​ not generally being availed of,​ some banks offer auto loans .​
This is​ helpful for people who are in​ the​ business of​ traveling or​ whose work involves frequent traveling .​
Auto loans are also very popular with the​ young set especially those who are studying in​ college.





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