Ma.

Stephanie Bardon FM-1B

Where to get a Loan? Bank or a Friend?

Professional and Non-professional people still loan for the bank, either way that they are short
in money or for a business transaction. But how can we not put our half of our limbs in digging
into the grave of our loans. We should know whether to transact with a friend or with a bank, just
to be sure that we are getting a loan and not a long lasting commitment that we may repent in the
long run. Because crying for what we loss is easy than finding money that we don’t have, just to
pay.

Not having enough money for a daily basis is very hard. You need to make a loan out of a
friend or in a bank? Either if it is for a business loan or a loan for the sake of living. Anytime you
borrow money, finance a purchase, or take a loan, you should carefully consider if it is a right
decision for you. Borrowing money mean that you are committing to pay money back within a
certain time frame and at a certain interest rate. Banks and online loan providers have much
deeper pockets than most people you know. When borrowing from your uncle, you can’t just ask
for as much money.

According to Moeneycrashers.com, Banks are safer than a friend’s loan. Friends may “For
loan oft loses both itself and friend.” By lending a money to a friend, you also give your full trust
into him. You trust him to pay on time or pay anytime. When a friend doesn’t repay you, they opt
to lose your trust also. The parties don’t reach an agreement for a timeline for repayments and
don’t include interest on the loan. So both parties can just destroy the secret agreement between
the two of you. You will both feel awkward to each other.

In borrowing money in a bank, you just pay for what you borrowed plus the interest monthly.
And after that you don’t have any obligations left, all will gonna be extinguished. But in borrowing
in a friend or a family member The borrower may ask for more. Once you have lent money to a
friend or family member, this person may return when he or she needs more money, in addition
other friends and family members may also ask for a loan. So banks are easy to handle than
taking personal loans.
 Many experiences say that banks are using professional transactions and don’t gossip you
around for borrowing a money. Family, friend’s or other personal loans may have a tendency or
not having a professional obligation towards you, He/she may spread “chismis” about you
borrowing money, being bankrupt, being helpless. Family friend or families tend to gossip more
with each other, especially if you are a family member. It will root more awkward situation towards
you and may lead to worst cases. While in bank, once you’ve pass all the requirements and you
pay on time. They will make no fuss about it, plus the security that they give their customer’s.
They don’t do “chismis”.

As a counter argument according to financial bankers, Banks also has a rating system, the
Bangko Central ng Pilipinas rate banks accordingly to the customer’s satisfactory rate and
standards. You can pick the best bank to loan at, so you can have the best treatment of a
professional financial institution. Not a sermon from a friend or a family member, going into your
house, demanding for the payment you didn’t even know was due. Lower transaction cost can be
made, through arrangements, but personal loans may lead higher emotional cost.

As a counter argument, banks are convenient, you wouldn’t go into your far “kumares” house
just for the payment of your loan. In the bank, you just log in, pay what is due and click, and it will
be sent and paid. No transportation cost will be made. Although there is no personal consideration
made in the bank, it will help you to be concise and enable yourself to handle such financial
situation that might lead to a responsible person. Bank due dates may train you to a be a better
citizen and an independent individual.

In conclusion with the argument, Banks don’t give you hassle situations that will make you
feel awkward. They secure you and lend you different schemes in paying them, while in Personal
loans you enter in a messy and blurry transactions, that in a while will demand you without a
proper orientation of paying them, so you can save ahead of time. Plus, with this argument it says
that, banks are safer, more manageable and hassle free institutions that you can go and ask help.
Rather than your rich neighbor or a friend. Because no strings attached, you just borrow and pay.