My Views On Loans

Loans are parts and parcels of our life. Some students need to apply for study loans. Lovers or married couples need to apply for housing loans to build their dream home and love nest there. Car lovers need to take car loans. Some sales people need a car to move around. They need to apply for car loans!

In my previous post Loans and Me, I mentioned that I do not like to take up loans and I do not like to borrow money from people. However, life has many unforseen circumstances and we do not know when we will be in need of money in some stages of our life. In addition, certain loans are essential as parts of our life — these are car loans, if you buy a car; housing loans, if you wish to buy a house; business loans, if you wish to borrow money to do some business; or personal loans, if you wish to borrow money for your own purposes such as investment or study etc.

In my past experience, I had taken up housing loans and house renovation loans. During my study time, my friends had taken study loans. As for car, I have not bought any car before, but my father, my brothers and my husband had take car loans to finance their cars. So you can see, all these are essential loans in life.

We should not use ‘borrowed money’ such as credit cards, personal loans, on unnecessary items such as clothings, shoes, jewelleries etc. Loans should be used wisely, such as on assets, having confidence that we are able to pay back the interests or loans in a time interval.

Applying for loans are not as easy as ABC. When applying for renovation loans, I used to compare the interest rates of various banks. Various banks have different ways of repayment of interest too. I asked around and I compared them. In the end when I have decided which bank to turn to, I had to send in application form to them. Filling up application form is something that I hate. It is tedious and boring. I need to disclose my company’s title, company position, monthly salary, CPF statement, housing loans, banks statement and many more similar information, all pertaining to financial matters.

After the application form was filled up, I need to mail out the form to the bank. Waiting for the reply from the bank took about minimum of two weeks. As I was applying the loans to pay for my house, I was very anxious about the outcome. I did not want it to be rejected. However, everything turns out fine and I had my first housing loan approved.

Today we can see many flyers and websites about taking loans, application for credit cards and even funds transfer facilities. Though it might be easy for people to take up ‘easy money’ in this sense, there should be disciplined and sensibility in the nation to know that they should not spend money unnecessary. When taking loans, whether it is secured loans, personal loans orDebt Consolidation Loan, one should know that they have to pay it back and with interests. They should not misuse the money and overspend their money. For Secured Loan visit The Thrifty Scot. Get the latest loans articles, various information of the loan types, insurance and even Financial news there!