If you are the type who wants to make money from opening a business or franchise, chances are that taking out a loan is the last of your priorities. Interest rates and monthly settlements can prove to be a problem especially if your business plan does not deliver the expected results that you had earlier forecasted.
Add to the fact that banks now are sure to be concerned with one thing…to offset the losses that they have gotten from bad loans. Much of these have piled up and for sure, being unable to collect these debts has contributed towards financial stability problems to this day. So to try and make up for the losses, where else would they figure covering up these bad debts?
It is unethical practice but during these hard times, you are sure to note that there are hidden charges in the form of interest rates and surcharges when you try to take out a loan. Credit investigation will be there but expect them to be more lenient. Remember that without loans to provide, how can financial institutions earn and remain standing?
Apparently, we see today the impact of poor financial chains spread all throughout the world. Banks are feeling the pinch of the credit crunch as well and while consumers may be blamed initially, how did they get their loans in the first place? Banks don’t seem to be that desperate to offer consumer loans and if there is anyone to blame for their demise, it is the investigating team concerned on the financial background of clients that should be highlighted.