Banks like to lend money to people who do not need money
By scheng1
@scheng1 (24649)
Singapore
June 13, 2016 9:43am CST
It is such a strange thing in life.
When you need money to survive, you will find that the banks do not want to lend money to you.
When you have a lot of money, and do not need money, you will find that the banks keep on calling you.
Banks like to lend money to people who do not need money.
It is the same in the business world.
The banks like to lend money to companies that are doing very well, and cash rich.
Why do you think it is so?
The reason is that bankers like to lend money to people who are financially responsible.
If you are rich, that means you are good at managing money.
That means you will return the money with interest without the bankers issue you letter of demand.
10 people like this
13 responses
@WorDazza (15830)
• Manchester, England
13 Jun 16
You've answered your own question there!
Banks aren't charities. They only lend to people who they are sure will pay it back. Well at least that's what they do now. For the first part of the 21st Century their greed meant that they lent money to anyone and surprise, surprise, a lot of people couldn't pay it back. That's basically what caused the 2008 crash.
3 people like this
@scheng1 (24649)
• Singapore
13 Jun 16
The 2008 crash is more than that.
The banks basically push up the property price in this way.
They do not lose a lot of money when people do not pay the loan because they have already sold the debt as investment to investors all over the world.
If they lend out a million dollars at 4% interest rate, they can sell to the investors at 3% interest rate. If each investor pays the bank $100,000, the bank just needs to get 9 more investors, and it gets back the million dollars already.
3 people like this
@WorDazza (15830)
• Manchester, England
13 Jun 16
@scheng1 But ultimately it all collapses when the guy at the bottom of the chain, the one with the original debt, can't pay it back. Then the 10 investors lose out and they can no longer afford, or become less interested in, those sort of investments. Then the banks are less able to sell the debts so they start to lose out!
3 people like this
@LadyDuck (472087)
• Switzerland
13 Jun 16
This is the same all over the world, of course the banks only lend to people who can return the money and pay the interest. They are not giving away their own money, they are using the clients of those who deposit their money to receive an interest.
2 people like this
@scheng1 (24649)
• Singapore
15 Jun 16
You know what is worse?
The banks keep on calling you and offering you personal loan even when you do not need the money.
Sometimes they even send you the check.
if you bank it in, that means you accept the loan.
That is unwanted solicitation.
If you need money and apply for it, most likely you will not get it.
1 person likes this
@BACONSTRIPSXXX (14351)
• West Haven, Connecticut
13 Jun 16
I hear ya, I tried getting a loan about 4 years back to my family an apartment and was turned down twice, After I paid it cash then about a week later they began calling trying to offer me a loan and I told them to F off lol
2 people like this
@BACONSTRIPSXXX (14351)
• West Haven, Connecticut
14 Jun 16
@scheng1 I agree, they arent their to really help the underdogs just people who have something to take from them if they dony pay the loans back
1 person likes this
@shivamani10 (11035)
• Hyderabad, India
13 Jun 16
This is how the world economy is going now. The banks are interested lending money to the rich only for the latter to evade it in future. The recent 'leaked papers' are an evidence to it. Many people in different countries evaded taxes and hid their money in an illegal manner
It is all because of ill-planned economic policies and Banking rules, Improper auditing and inspection.
2 people like this
@Bhaskarjhborah (735)
• India
13 Jun 16
You are saying truth. I practically faced this two years before. I applied loan to open an IT firm. I had all necessary documents that are wanted for that type of loan. But I didn't get it. The whole of my planning gone wast.
2 people like this
@Bhaskarjhborah (735)
• India
13 Jun 16
@scheng1 Yes. They only want to invest in large business.
1 person likes this
@youless (112586)
• Guangzhou, China
14 Jun 16
As the banks will not be worried about the bad debts. They want to loan money and then get some profits from it. This is one way for the banks to survive.
Several days ago one of my banks called me and wanted to lend me money. I said I didn't want it at all. The sales felt very strange and I emphasized that I really didn't want your money. I almost wanted to say that I wanted it if I didn't want to return it
This kind of call is always very annoying.
This kind of call is always very annoying.1 person likes this
@springs (923)
• India
16 Jun 16
The same is all over the world.A person who is able to pay or who is in need are not getting loans.They thrown to non-banking finance organization,there they are sucking the blood.Once he is successful the same bank will go to ask for a loan.
People who are politically influenced and who have large companies ,planes like that banks will go lend them money.Once he is away from the country and it is not easy go for an auction for such big companies.
New entrepreneurs should be encouraged
1 person likes this
@cherriefic (10399)
• Philippines
14 Jun 16
It's business so they have to gain income out of it.
1 person likes this
@sunrisefan (28524)
• Philippines
15 Jun 16
You are definitely right. Banks lend money to those who do not need it because they're assured of payment. They also do not lend to those who do not have money thinking that they might have a hard time collecting or they might not be paid at all if the borrower goes deeper into the hole. That's the irony of life and business.
1 person likes this
