Loan is one of the means to get money right away but never expect that you will be paying the same exact amount that loaned.   Loans are multipurpose; it can be of use for medical, educational or travel expenses.  You can buy whatever you want with the money you loaned like the latest gadget or jewelry etc.  It is easy to get a loan especially when it is a personal loan, bank loans are also easy but collateral and several documents will be asked from you.  Now let us talk about this phrase “never expect that you will be paying the same exact amount that loaned”.  Yes! When you loan money, you have to pay the interest.  It is very risky since some lenders do not allow partial payments and you need to have good credit standing.
There are different types of loans depending on financial stability and purposes.  For college students, there are student loans available in your area just choose the lowest rate.  In the US, they have the federal student loans where they offer low interest rate and friendly with the repayments.  For those who wants to get a house or cars, banks offers mortgages or car loans.  If you wish to get lower interest rates, you should try small banks because they always offer lower than well-established banks.  Personal loan is another type of loan, you can use it in any means you want it.  There is also loan for veterans, this type of loan is usually offered by the government.  If you want to build your own business, banks offers small business loans.  BDO offers to entrepreneurs P1M for a minimum term of 1 year.  BPI offers franchising loans with a minimum term of two years and  base amount of P500,000.  Borrowing from friends and family is an informal type of loans and easier compared to other loans available.  But this option is not advisable because this may cause a severed relationship due to loan.  Cash advance is always an option, if you have a credit card just bring your card to an ATM and withdraw the money you wanted but take note always on the interest rate when you cash advance.  Borrowing from retirement and life insurance is also an option.  It is like borrowing from yourself and the repayment is easier and less stressful.  But failure to repay the loan may result to some tax problems so you have to be prompt and exact with your payment.  Consolidated loans is also in the list, it is the consolidation of unsecured debts into one bill.  It means that instead of having several creditors every month, it will be consolidated into one statement and you just have to pay to one creditor.


In deciding on loan, you have to make sure that you understand all the terms and conditions given by the lender and you must know the consequences.  You must know what you are receiving and be familiar with the repayment.  If you are confused or there are some things in the terms that you do not understand, never hesitate to ask the lender whether it be a bank or someone you know.


  1. I think that ask for a loan is a very important decision even if you really need money. A few months ago I took one from my bank and it was for an investment which had a decent return. This left me pay fees, capital and still get some earnings. At least you have an emergency you should take a loan as a last resource this could take you to a deeper and worse situation than you were before.

  2. I have been in to several loans in the past and I guess this is the right time to be smart on my finances. I can relate to this article so much. But now I am free because I manage to pay my loans and my bill. next for me is to invest. This article is very helpful when it comes to my decision makes. Probably I could loan for a business purpose someday so that i could accumulate extra income too.

  3. this is a very good post.This article enlightens the reader on the knowledge about taking loans. From the terms and condition involved in the loan to the interest that would be payed on the exact amount you borrowed. This article entails a whole lot of information about taking loans and i think it would literally help a wide range of people who want to take a loan.

  4. At the credit union I work for, we go over the credit report with the applicant and ask about their derogatory marks. This gives them a chance to explain, like say, at the time they were going through a bad divorce or something. The problem is, a lot of people keep quiet on the details of the negative payment history and this forces us to judge without context. If your lender is asking you about negative history, always do your best to explain the circumstances

  5. There is always an upside and a downside for applying loans. And I agree that the lessor should understand the terms and conditions indicated by the loan you are applying for. My father has always been borrowing money from different cooperatives and banks to sustain our studies. And one thing I have observed is that each banks have different terms and most of them actually sounds to have cheaper interests than the other. But when you do the computation, you eventually see how much interest they have acquired. So in applying for loans, do your computations and understand which of the loans should you get to get a cheaper pay back.

  6. Loans can help us to get money in a fast way, but there are factor that we need to consider, because when we apply loans there are lots of hiden charges that we dont know. And before applying to loans we need to undertand and know what loans we should get.

  7. Loan approval nowadays is fast and easy. However, first consider if you can commit to paying the amount you owe the bank or any loan institution. Review finances and expenses including mortgage if there’s any. Choose an institution that offers less interest rate. The lesser the rate the better, right?

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