10 Thoughts Before Borrowing Money From A Bank Or A Person

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Many people take loans when needed. We have ever borrowed from banks or financial institutions and from friends. In the case of debt or borrowing, some factors should be kept in mind, or there is a fear of losing the relationship or you can fall into legal complications. Zillur Rahman Khan, the first assistant vice president, and manager of Standard Bank; said that- when borrowing should be thinking about the future. Borrow small amounts of money from friends or relatives or borrow big money from financial institutions – in both cases, be careful. He has suggested several things to be taken care of in terms of debt and borrowing.

1. Think before why money is needed

In many cases maybe money is not needed, yet we borrow. Write a list why you need money, where you will spend it. Think carefully every side before taken borrow. If not needed, why you will carry the load of borrow?

2. Keep in mind the alternate ways

You might borrow money to buy a motorcycle. While buying a bicycle, you can go to the office every day with ease. Think about alternate ways why you’re taking borrow.

3. Plan to use money properly

Make a plan how to you will use the money properly. Suddenly you have applied for borrowing and you got money, now you have no any idea or plan how to you will use that money.

4. Keep in mind how to spend the money

Keep in mind that you are spending money on the right track. Keep in mind the utilization of money. Make sure that luxury is not born because of money.

5. Keep relationship

Keep good relationship with whom you are borrowing money from. If you have a complication with a relationship, then focus on creating good relationships. If there is any problem in repaying the loan of the bank or financial institution, then discuss with the bank manager or the concerned authorities about your problems.

6. Find out the terms and conditions of the law

You can know about the relevant laws in the field of borrowing from financial institutions including banks. If there is any condition, then know fully about it. If you do not understand the difficult language of different banking terms, you can consult with a lawyer or an experienced person.

7. Keep the account in paper and pen

In many cases, we keep accounting verbally when taking loan or borrowing. Keeping the accounts in mind, there is a chance to make a mistake. Keep track in paper and pen, how much money you are taking, how much you are paying. You can use online accounting software or mobile phone apps.

8. Money need to pay – it keeps in mind

After getting the money, you have to be careful about how to repay the money. Keep in mind that complexity will not create to pay money at the regular rate. If you repay the loan from the salary, in case of any risk of repaying the loan, keep an alternative way.

9. Loan money if needed

Never lend money without the actual need. Try to understand your own needs. Take the loan to understand the level of need. Do not make a quick decision.

10. Spend your income, save it

Spend whatever you earn. Practice saving money regularly. Savings practice ensures future financial security.

Source: Forbes and Money Crasher. Share the article on your social profiles.

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