role of loan in human life depends on situations justify the statement with suitable example
Answers
Answer:
In finance, a loan is the lending of money by one or more individuals, organizations, or other entities to other individuals, organizations etc. The recipient (i.e. the borrower) incurs a debt, and is usually liable to pay interest on that debt until it is repaid, and also to repay the principal amount borrowed.
What are the advantages of loans?
Loans are not very flexible - you could be paying interest on funds you're not using. You could have trouble making monthly repayments if your customers don't pay you promptly, causing cashflow problems. In some cases, loans are secured against the assets of the business or your personal possessions, eg your home.
Explanation:
What are the 4 types of loans?
Here are four common types of small business loans available:
Long-Term Loans. One of the most common types of loans distributed by large commercial lenders. ...
Short-Term Loans. ...
Lines of Credit. ...
Alternative Financing.
Bank Loan Disadvantages. ... With a lower score, obtaining loans in the future becomes more difficult. The repayment burden is a disadvantage compared to raising money through shareholders, because shareholders don't require regular repayments. Instead, they are typically paid dividends only on profits.
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