A loan is a sum of money you apply for to enable you meet a need. This need requires money which you do not totally/completely/sufficiently posses nor have.
WHERE TO GET A LOAN?
The primary place for borrowing money is the Bank. There are financial institutions set up to also service loans such as Mortgage institutions, Cooperative and Credit Thrift Associations, etc.
WHEN TO APPLY FOR A LOAN?
Apply for a loan to service an asset and not a liability. An asset brings/generates return on investment (ROI) while a Liability drains and depletes funds. Funds here refer to loan applied for or money available to you.
Apply for a loan only when you are sure there is a repayment plan on ground and you are prepared to be fully and totally committed to ensure the loan is repaid as at when due.
You need to consider and ascertain upfront if applying for a loan is the appropriate line of action to undertake. The reason being that, it is not every time and for everything you experience a shortfall in funds (inadequate money) that you are to opt for a loan application.
PAYING BACK A LOAN
How you intend to pay back the loan applied for is a question that must be seriously considered prior to applying for a loan.
As much as applying for a loan is advised and encouraged whenever there is a cash crunch/ inadequate funds, you must put into consideration the loan repayment terms and conditions, time/period, interest charged, etc.
Defaulting (inability to redeem or pay back the loan) destroys your credibility/ credit worthiness and puts you in a rather inconvenient situation.
Attempting to secure a loan in the future though not refused will prove difficult.
Take my word- you don’t want to walk a tight rope as such, even though you make an attempt at lobbying to be considered for a loan approval. It only makes the loan application arduous or rather difficult.
…to be continued
