What is the major challenge with getting loan for business

[Chizfab]

Apart from the collateral system, there is also the issue of interest rate attached to the loan according to the amount of the loan and the time duration. This can vary according to the different banking policy operated by financial institutions. However, they are government sponsored loans and grants that have zero or minimum interest rate.

 

[Ralphjoe]

Apart from the collateral system, there is also the issue of interest rate attached to the loan according to the amount of the loan and the time duration. This can vary according to the different banking policy operated by financial institutions. However, they are government sponsored loans and grants that have zero or minimum interest rate.

Well you are very right that most of the loans I have a lot of pig interest rate that is attached to them and as a result of this high interest rate is seems to discourage a lot of people from taking loans for any Ventures.

 

[Solutionav]

Most people hardly feel comfortable with securing loans from banks as they feel it puts pressure on them due to the collateral attached . Are there no better ways to tackle this issue of being afraid to secure loans

Many have killed them self because they secure loan from the bank and they are unable to pay back the loan because the business crush, they have no choice then to end their life

 

[tyrim88]

Banks are always very strict with loan money... But using loan money for business is very risky... The money that ought to be your gain will be use to pay interest.... So no gain for you and you will be at the verge of bankruptcy.

That is the major reason why it is not actually a good idea for a new start up to begin any business venture with a borrowed loan,because he has not done any business to know the income that will accure to the outfit.

 

[Kelly5]

Collateral. Yes you heard me very correctly there. The major challenge in getting loans from bank and other major financial institutions is the inability of the borrower to present a valid collateral

 

[Sotherefore]

Sometimes if you are really interested on getting a loan from a bank or other loan giving organisation you have to present a tangible business idea that they can consider. without a good business idea, the loan may not be given to you.

 

[Senator]

One very challenge in getting loans for business especially through financial houses like the banks is their tedious and seemingly unending beurocracy that is involved. It can get a person discouraged

 

[Ralphjoe]

One very challenge in getting loans for business especially through financial houses like the banks is their tedious and seemingly unending beurocracy that is involved. It can get a person discouraged

Well for me I think the major challenges that most people face when trying to obtain loan to start up a business is the fact that most of these financial banks do require be collateral before all these loans can be disbursed and so most of these people do not have those kind of collateral.

 

[Setho]

You might struggle to find a loan for your business if the business is just a new business and also if you do not have a very high value collateral and guarantor.

 

[Skysaint]

The challenge is the uncertainty of what will become of the business in future considering that you're still new to the business. It will really be a bad idea to take up loans for business startups, I would rather prefer it for business development

 

[Shigobad2020]

Banks and loan shark normally gives loan to people that has properties and a good surety , if you are starting a business and the banks or the loan shark access you and believe you dint have what it takes to refund the loan , then you are not getting anything.

 

[Stylex]

Most people hardly feel comfortable with securing loans from banks as they feel it puts pressure on them due to the collateral attached . Are there no better ways to tackle this issue of being afraid to secure loans

that's true ,me personally i don't want to collect loan from anybody to start up a business,I say it and I will continue saying it ,it is very easy to collect a loan but I you will find it difficult to take it back ,collecting loans to start up a business is not the best idea.

 

[Kelly5]

On rod the major challenge in getting a loan for business from either the banks or from other financial institutions is the inability of the loan collector to present an adequate collateral for the loan

 

[kayode10]

Corrupt system is one of the reasons why is difficult for someone to secure a loan for his or her business. Loans are given to the highest bidder and those who know how to bribe their way through.

 

[Ralphjoe]

On rod the major challenge in getting a loan for business from either the banks or from other financial institutions is the inability of the loan collector to present an adequate collateral for the loan

You have said the truth and nothing but the truth as for most of us that wanted to start up a business in my country Nigeria one of those things that discourage us from ever taking loans from Bank is the lack of collateral to service our loans.

 

[Kubiat-Abasi]

The major challenges involved in getting a loan is the interest rate attached. Most financial institution or loan facility tend to increase the interest rate and this in turn makes it so cumbersome for loan collectors to be able to return the money on time thereby accumulating more interest rate.

 

[Skysaint]

Taking up loans always do come to people as their last option but that doesn't hide the fact that it could be detrimental to you and your new established business. We should always have a plan B on how to make repayments incase our business should fail

 

[Immilash]

It is not advisable to start a business with loans it's very simple,its easy to take the loan but it's hard to take it back. Most people have regretted it. Don't be among those people.

 

[Godspower]

The major challenge of securing a loan for business is the high interest rates of most loan providers. Another issue is that most intending entrepreneurs do not have the required collateral.

 

[Hrtbeat]

Collateral, terms and conditions that are applicable in securing a loan

Post automatically merged: Nov 14, 2021

Collateral, terms and conditions that are applicable with the high interest rates are things that make a lot of people to avoid getting loans