loan a trap ?

Nowadays banks are in a lot of trouble because people are not keeping money in banks, instead, they are investing and this is spoiling the system of banks because earlier people used to keep their money mostly in bank accounts but now people are investing because by investing they earn more than what they used to gain normally. Although the interest rate in banks is meager nowadays many banks have brought in different types of schemes in FDS and RDS due to which people are getting lower interest rates than before but still people are more interested in investing nowadays and in such a situation problems are increasing for banks.

I keep getting calls from the bank daily that you are getting a loan of such an amount and that too at a very low interest rate, yes at the time of giving the loan, they tell me the interest rate to be low when once you start the process then you come to know the reality and you come to know what the interest rate is in reality. Well, we all have often seen that big businessmen take huge loans from banks and the bank gives them loans. If a common man goes to take a loan, he has to pay a huge interest rate because big businessmen return the money in a few days but a common man takes a lot of time to do the same and this is how the bank makes a profit. The longer the tenure of your loan, the more profit the bank makes.

If you are investing somewhere by taking a loan and have become older than that, you should repay it as soon as possible because you only have to pay its interest. If you are repaying the loan in instalments, then in such a case you will have to pay a lot of money in return. If you calculate, you incur a lot of loss in the long term. So, if you have taken a loan for any reason, then you should try to repay it as soon as possible if your interest rate is high. Whenever you get a lot of money or some money from somewhere, invest it in a loan and your interest will be reduced. The lesser your amount becomes, the lesser will be your interest rate. Many people prolong their loans for their convenience and in this way, banks get a lot of profit. But we should think about this thing and always keep the loan tenure short. If you can finish it soon, then if you do not have any other option, you will have to do this. Otherwise, try to keep the loan tenure short.

Source

Translated with Google Translator, thanks

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