Why do you borrow money?

Answer 1

There could be thousands of reasons people borrow money. To buy a car, a home, to take a vacation, there are too many reasons why people borrow money to list here. Hopefully you got the jest of this answer.

There a numerous reasons for the borrowing of money but common ones are; home loans, purchasing of cars, insurance, purchssing of business companies etc.

People borrow money in generall because they either cant afford something or they have no money in cash, so they borrow from the bank, the disadvantage however is that you have to pay it back, and what people don't realise is that the bank adds interest to the overall payment if you pay it over a period of time which is not in the month requested by the bank.

Answer 2

Loan is a form of debt, often with interest. There are several reasons why organizations apply for loans. Usually they borrow money to purchase a land, buy a building, or addition their company equipment. Often, applying for a loan is necessary because most organization will have limited money but their company projects have more than their money. Because of that they must take a look others sources of finance to help their finance. One of the sources of finance is bank loan. Bank will give loan to us according our financial company. If ours company to strong we can borrow more if not we have limited money to borrow.

Answer 3

There are many reasons people take out loans such as family vacations, debt consolidation, buying a car, car repairs, medical expenses, etc.

Answer 4

When you borrow money is because you don't have money and you can borrow money and then you have to pay them back of how much you borrow from them.