Bitcoin Forum

I think loan is a scam. An economy needs, only, free funding and a tax system and nothing else. Do you agree?

I wouldn't call it a scam, but robbery yes. It's the way that banks make their living but often this loans are to expensive and unfair forw their clients. Islam banks, though, give loans without interest.

If the bank starts to give free money our people will become too lazy ;D ;D ;D..... In my opinion, it depends upon the country income. The rich countries should provide loan for needy people without interest. In contrast, the poor countries should apply normal interest and it will help to balance the country economic level.

I do not think it as a scam. Why would someone give you money without their own profit.
Banks have their own infrastructure, they have to pay bills, pay their employees, for all these needs it is necessary to interest money.

Banks need to charge interest on loans to pay for all the salaries of the fat cats and shareholders behind the curtain. They also have to pay for the huge sponsorship for Sport and expensive

advertisements in mainstream media. They also have to maintain old outdated private ledgers in super secure facilities and build secure faults to charge us even more. The Islam banks piggy back off

other people to give these interest free loans {Well this is true for my country, where they share banking services with other people from other religions} Now you know, where your interest is going...

and why we need to feed the fat cats, if you using the fiat system linked to banks.   

You have a good point here.

What happens if banks give only loans. They're the only source of money in the society. Every coin you ever had went through banks. It means they have interests on absolutely everything in the world. But how do you pay those interests if bank already owns all the money?
Answer is simple: by taking a bigger loan.

Nobody will give you free money without benefit . Banks its a big financial pyramid and they trying to make money from it.

the same way you do not work for free, everyone here in this world need to be payed if they run a service

also giving money for free would require continuous printing, because there will no more deterrent to how much it will be asked by anyone

The main reason of bank getting huge profit is because of loan. Agree with you bank should provide the loan to needy people for free... As you said depending on financial condition of the country. Loan if they provide it is more income to the bank because any way they will get the 100% amount + 50 % more towards what  they provided loan...obviously no one goes for the loss if they can make more profit.

Most people dont know that it is illegal to payback a loan to a bank with or without interest. Only a contingent tax is legal. If they knew it, massive lawsuits would happened against the banks.

Difference here is that there is no choice given.
Banks print every penny in the world. It means they get interests on every penny in the world. Interests that can be paid only by printing more money that they lend again.
That's why the statement "the world is 300billions in debt" is true. And it's in debt to the banks, not to the moon.

No, thats why the tax system invented.

What? I don't understand what you mean. You mean it's illegal to pay a loan?

Yes, because it is double charging, you  pay 1)the tax and 2)the loan and if you pay interest it is triple charging.

I still don't understand. You don't pay the tax, what kind of tax do you pay on a loan?

I mean the tax to the state.

A loan is a scam, banks dont lend you anything they create money out of thin air in the form of credit and charge you interest for the privilege.  Its all a complete scam that the general public know nothing about.

Loans are not a scam. This is the way the banks and the quick loan companies are making their money. It's a business like any other where you have a shortage of funds and you can't pay your bills for the month so you go and use their service. Like it's up to you if you are gonna get a loan or not they haven't pointed a gun to your head.

There are a wide range of loans and it is unfair to call them all a scam. Normal loans where you might pay 3% yearly over the lifetime of the loan seem reasonable. This allows for various things like admin and a small bit of profit to the bank - as it should be. It's the payday loan lenders who offer short term but expect an incredibly high return that ruin it for the others. You have to look after your own credit rating as well

its a system they made over the years.

not much of a scam, but only needed to build credit etc. Loans are fine, its just the disguised interest rates is where the robbery begins.

Loans/mortgages/credit cards u name it banks got it.

None of above is real- just digits in system. Once you agree to loan money are created thanks to you and nobody else.

Banks just type few digits in your account and BAM, loan(thin air) became real money.

Each month you giving away real money/work to payback illusion created by bank.

Credit score-history was created by banks for one reason, to get list of people who are not good for banking business.

Try take loan and don't repay that, what will happen?  Bank will sell debt to some shady debt recovery companys for 1/3 value of loan(thats real interest they would earned if you would repay loan) and new owner will pursuit you for debt. In UK after 6 month time debt is ressel again to another and so on.
Bank have no power to force anyone to do anything against his will. So if you choose to not repay CC or loan they will sell debt and write off rest.

In some cases bank can take you to court to make you bankrupt but it's not easy for them do that, they need customers regardless if good or not.

Just read terminology on bank adverts...deposits 5% EAR , loand 7.4% APR, all that staff is created to mislead.

Biggest robbery? PPI for each product from bank. Loand with PPI cover could cost 1/5 of all loan just for PPI.
Later banks was forced to pay back all and who was to blame? NOBODY> Banks doing shady deals untill are caught red handed.
Biggest crooks are not people who dont pay taxes or hiding revenue to make decent living. Biggest crooks are banks. They doing what they want and they cannot be touch.

Theres not much we can do about a system though lol.

All we can do is hope for the love of god people use this coin to lessen our debts or one day be used for something that gives an incredible value so we can all cash out to not need loans lol.

But yeah what youre describing is the US system on how the IRS and treasury which aids back to their bailouts with their federal reserve.

Banks are scams, yes. Banks are built like that. The system is not broken, it is made that way.
They claim to produce their profit by stock exchange but it's with the loans.

Banks don't give free money because if they do, inflation is at stake. You see, there's the bad and good side of the existence of banks and loans

As of now, i started live only on btc and my work.
I was forced to do so and as of now feeling better than before. Dont have to be scared that my card wont work because bank frozen account or have some crap failure.

I have full time employment and basically fiat is minimal in my hand. If i need extra just using BTC.

Screw the banks. 2 months now im living without them and it seems its ok.

 

No, we have the tax system to avoid inflation. If you pay tax you dont need to payback the loan.

Sure loans is trap slavery The biggest shit is that banks are landing not his money
becouse thay dont have money and thay ont have any value thay have created debt money
it is not scam it is terrorism bankers has to be jailed

Oh. Totally forgot about it. Haha.
Things make sense to me now :D

the revenue from taxes is something in comparison with the whole priting scam, they would be lucky if it reach 10%, since many are also evading it

banks are just another business trying to earn money by getting it out of the people who are in need of money. that is the whole purpose of their existence.
before there were mafia and loan sharks with face scars who broke your legs if you didn't pay back now there are banks doing the same thing wearing a nice suit.


haha. you wish...
it is 16%-20%

Why would they give it for free if they CAN charge u gross amounts

It is a very big scam and the professors of economics say nothing about it. People have the right to sue the banks.

I think it's not a scam.
loaning is a kindness. but that makes it malicious is the tax and the time period.  ;D

That's where you're wrong. Fact is that every penny in the world goes through banks. It means they get interest on absolutely EVERY dollar!
There is nothing you can do about it. You all pay the interest back to banks.
But if banks control every dollar, what can you repay them with? Well with more dollars banks print and lend.

They have to give out loans with interest it's one of the major ways they actually profit. If they didn't don't be surprised to see money slowly trickling out of your account. So loans make up the bank and pay the bills.

Yeah but it's not normal to see banks making profit simply because they create all money! That means any profit they make is made through debt of people to banks. That's why the "world is in debt". In debt to banks.

I don't see too much of an issue with banks charging a small amount of interest as they need to survive, what I have a problem with is the payday and short term loan companies which have interest levels up in the thousands, these just prey on the poor people who need money quickly and are struggling.

How does Islam banks survive without charging interest? Does it charge a lot of fees to cover their cost?

No, they charge the same fees as our banks. In fact, fees are here to cover the costs, interests are plain profits.

Yeah if interests are here to cover the costs no problem with that. But that would make 0.05% interests, not the usual 3%.

People are sarcastic about this and FYI they do charge interest as well however the interest is very low compared to the other stuff. Im not fond of their religion however they got some X percentage interest tolerant and the banks could charge that, moreover the fees is only to cover their service and get slight profit

Only if this system functions properly banks would continue. Else there will not be much banks and no more profits will be earned on making a account with them. Only with those amounts got as interest the banks make good profit.

they probably have low cost since their infrastructure are cheap and also do not forget that they probably own the petroil there so they have a large quantity of funds in case of bankrupt

no,i'm not agree. if banks give free money,people will uncontrolled,goverment can't control the economic system,its what i think about this.
"people always want goverment to give them money,but actually govement earn money from people" ;D

no it is not a scam, but like someone said,robbery, but yes why banks should give free money to anyone? this is their way to earn money, they loan you money you give more back, if you don't want to give back more then don't loan

Yes only the loan through which they get lot of profit. Eg. If they provide loan for 9-10% for 10years then they get the double amount + Interest along with that....obviously when they make this huge so why will they provide free money???

banks got a lot of income by providing loans because they can get interests on it and also if they will give you money for nothing then what they got and also if everyone will money for free then the value of money will be 0 cuz everyone will get it without doing nothing

The worst part is, they allow reckless burrowing and loans and created money out of thin air, and when you cannot afford to pay this debt, they reposes your assets and turn your fake debt into real value. You

just got suckered to hand over your real assets for debt that was just numbers on a ledger. Some of these financial organizations even sell your debt to debt collector agencies and make an income from your

debt, without even having to lift a finger. Your debt has just become an profit for them and they did not even have to deal with you... you blame the debt collectors.  ::)

Spending not Lending all new money into circulation is the only change that will Free America and its people from Economic Servitude.

The U.S. Treasury would create new money as numbers like the banks do now when they make loans.
The new numbers (money) would not be a loan but rather a final, debt-free, earned payment.
The new numbers (money) would be spent, not lent into circulation debt and interest-free, in lieu of taxation or bonding as a payment earned through the building and maintenance of Public Roads and Bridges.

The new numbers (money) would not be a loan but a final, debt-free, earned payment.
The new numbers (money) would be SPENT, not lent into circulation debt and interest-free, in lieu of taxation or bonding as a final, debt-free, payment earned through the building and maintenance of Public Roads and Bridges that people would use with no fees or taxes of any kind.

http://www.wealthmoney.org/authors/byron-dale/

Don't ask me how exactly, but if you fix the money, you will fix world - that much I'm completely sure of.

The only simple answer is - Banks lend because they have interests to pay ahead, so it's just another source of income that they have to offer their users who already have accounts there...

Well the banks need to make money as well, if they give you the money for free, how are they going to do that. It is pretty fair for the workers I guess, but not for the people needing loans.

you can say the job of bank is to save money and take profit from that and invest those money in loan as well to make more profit .
if they don't do like that it will be no need to make a bank and work in it and hire worker to pay them.
it will be just wasting his money and no one want that .

Lol, resources are limited, don't you know.  Banks can't and won't just give away money for nothing.  It's a nice thought but economics just doesn't work that way, and you might find the study of money and banking very interesting.  And you'd find the reason why your question is absurd.

Isn't a loan free money?

Well it's not how you mentioned in the title, you mean to give loan without interest, if you meant this then yes, this is how should normally bank acts, they can profit a lot from other sources like bank fees, transaction to another country etc.

And maybe you should start studying it. Then you would understand it's far from absurd, cause ressources might be limited but not for the banks. They get every penny in the world going through them. They earn interest on absolutely EVERYTHING. And that's scary as hell.

about the free money banks don't give, I think it's normal. unless the bank is owned by a rich kind man, then he wants to share his money to the poor, so it would happen, free money from a bank.
but I think it's hard to find kind of man.

then if banks give free money, who will sell our necessity? because of having much money, people will think why should they work? so there will be no seller and perhaps human will eat money. lol

Why any private business just don't give out money?
Because it was made to make money for themselves?

Well, Byron Dale supports the idea of debt-free, interest-free and banks-free money.

See more: http://www.wealthmoney.org/

Watch "The Money Masters" by Bill Still, its on youtube.  It is a great doc on this subject  ;)

Well if were that way we wouldnt have Bill Gates and others sharks of fiat would share their sucess with you?Steve jobs made Apple being a huge sucess,with huge inovation soo you wanna a part of it ?Get a share ,from big companies,no one will give you nothing without interest undercover.Banks were made to support economy and make the owners rich.Why banks would offer you interest if they couldnt get.

It's all about profits. I for instance live in a country with high inflation rate (recently it's decreasing and moving towards deflation), and banks give loans at 30-40% interest (it's crazy), and when you lend them your money, they give you only 20-25% money as interest (long term). Unfortunately many people support this and until this stops, the trend will continue to further take people money in a way that it's somehow unfair.

On a side note: I see some saying Islamic banks don't charge interest, and that's a big lie. I live in a Islamic country and all banks here, charge huge interest.

i have replied to this only 6-7 comments above you. i don't know where bitbunnny got this idea that Islamic banks are giving interest free loans! they do take interest for their loans.
i can give you links to the banks with percentage interest rates mentioned in the pages if anybody wants.

Yes, these loans are fraud to such people , they collect a large amount of interest in return of the loan.
In relative to it Islamic banking loan system is much better, as in Islamic loan system there is no any interest but they give it for helping, which is describe here http://islamicbanking.info/islamic-mortgage-loans/ and here http://www.islamic-laws.com/debtloanrules.htm

Wow those long term is how many years?To get 20-25% you need a huge ammount or atleast a fortune?Where do you live ,i wanna to moove now what a huge interest atleast looks like.

They cant give free money because because they cannot get profit with it. And banks get rich for the people who stored their money in their bank and bankers use it to loan to other businessmans so the bankers gets more profit. For giving free money they dont bother wasting time for that. All they think is profit not wasting.

If banks will give free money, then soon banks will need some loan. Almost everyone will take some thousands.  ;)

there is no one thinking about giving money for free. even giveaway it is for promotion or attrackting people so there is no interest for bank to give free money.
bank has many customer so no need for promotion to have more.
i have a great profit so they don't have to do anythink just loan for more profit

The reason the interest rates are that high is because the local currency is depreciating that fast or faster. You may earn 10 or 15% a year on a bank deposit, but when the local currency is depreciating at 25% per year or higher, you're not coming out ahead. You're losing money by holding the currency.

Becouse banks want your money.In exchange thay are giving you that what thay call loans debt
money what dont exist for that virtual money you have to pay hardly earned money

Well i know that those big income comes with inflation,like Venezuela and Argentina those countries has a huge inflation rates.Banks open the doors offering a service,protect your capital,for a fee,and they work out with your money all the services they offer is money from their costumers,they dont risk their own money .

There is a difference between free interests loans and free money... That's what's the OP is talking about!

I believe banks don't have the money. Only the government holds the money. Bank doesn't have the right to issue their own money. For these reasons they use several tactics to gain more from the public with various schemes.

That's the most wrong thing I ever read in this forum.

Banks don't issue their own money in paper, but they got total control over it and they can litteraly create money.
A bank needs only 3$ to lend 100$! That means they can create 97$ with only3$!!!

If the banks will give free money then they cannot operate anymore they only depend on people's money to invest on them, file some loans then they will earn interest where they can depend on their operation and a day to day transactions. 

Absolutely not. Banks owns everything. Every penny has been owned by a bank then lent to someone with interests...

There really is no money in the first place.  It stopped being money (USD for example) when it was no longer backed by gold.  It is madness that interest is charged on something that does not exist in the first place. They don't have to "give free money" they GET free money.

uncontrolled people will ask for more money if bank give free money,almost all people are greedy,its the matter.
bank loan money for interest,they have big interest to get profit,its should not asked in future.

Thanks you for understanding that it's exactly where is the problem...

More money = high velocity of money and according to QTM high velocity = high tax. So there is balance.

it is normal they loan the money of other to make profit so bank don't use their own money to make income.
and like you said if it will give free money how it can make profit or give back the money saved from others.

There certainly is money. Money is currency. It's tangible, you can hold it in your hand; it exists. Furthermore, society has agreed that it has value, which is what makes trade possible. People won't trade with something that "doesn't exist." You can hate the current monetary system or hate that it isn't backed by gold. But you can't deny it exists and be taken seriously.

My question to you is, why would the bank give you free money?? Why are you expecting to receive free money??

Loan is an asset for the bank from where they earn interest and pays back the interest to the savings account holders. Banks make profit with the difference in interest rates. That's business for them and the whole banking system is using this model.

It's better to work for money instead of hoping to receive free money from banks.

No, the bankers must go to work because they earn money without work.

I don't think so because with the borrowing. someone who needs the money will be helped by it. although they should pay the interest but it is very helpful for people who need money
but of course the cost of interest must be in accordance with your abilities not too big <10%

Imagine what will happen if bank give free money, all of human will become lazy and the economic of the country will stop

I disagree because the 90% of the works do by machines.

Interest rate is largely related to risk. If you're a risky borrower, you pay higher interest because you're more likely not to pay back the loan, which requires someone to have a larger potential reward in order to make it worth it to take on the risk of making the loan. Of course, risky borrowers always have the choice to save for what they want to buy and pay for it in full instead of borrowing.

Risk is one aspect. There are a lot of other costs which banks have to factor in
- Interest they pay on deposits
- Employee and other overhead costs
- Cost of deposit insurance

While all of that is true, I think risk of the borrower is the most crucial component in determining the rate. All of those other factors don't change the rate nearly as much as the risk of the borrower. This is true for individuals, and businesses that issue corporate bonds. The riskier the borrower, the more they pay in interest.

If the banks gave out free money no one would want to work and money would be worthless because 1) it would no longer be scarce and 2) no one would produce anything to sell since money is free.

banks even they are supported by government they will never gave us free money because they also take advantage from the loans also on my country banks only give loans with collateral because if someone don't have it banks will never give us free loan basically banks give loans because they also want money

Tell that to Byron Dale: http://www.wealthmoney.org/

Why should the bank give you free money? Nothing is free so you will have to loan it. Banks loan out their money because you will have to pay more money then what you lend from the bank.

For example, if im a government and i want to build a railroad, why i need a loan from central bank? I can print my own money without loan, without interest and build the railroad.

It's easy to say that. But you need to consider that when you print more money the value of that money would decrease due to inflation. C'mon it's just a simple economics it's called "supply and demand". Most bitcoin users know that.

Then nothing exist at all. Religions, governments, currencies etc.. nothing is real, it is just a tool to control masses. Its the system that runs all that, make classes, higher people.. in ancient Rome someone sad give food and games to a people. So they gave us many games to make us confused while they control important things.
I dont know will we be alive to see some real changes in the world, system have armies, police units, guns and everything else. They will protect it, evil people that wish everything for them.

No, the tax system protects from inflation. If the velocity of money is too high (inflation) you can remove money from the economy with tax. Most people dont understand this simple economic theory. In the economic schools they teach bulshits because economic schools are controlled by jews and freemasons. They created this bullshit system based on usury.

Would you do some work for free?The same way as banks they take a risk ,expose their capital(costumers savings)to you soo they need to take something around it.I doubt you would do a house for free since others are getting paid for the same service,banks will always charge.

of course the banks will not give it freely. bank is an organization that is always thinking about their profits. bank profited from the interest on the loan. but sometimes the bank will give you free money if you have transactions and account on there. and it is usually done every year for their birthdays or holidays.

Like any business, it needs to be in a profitable zone.

So a loan to them is basically the structure it needs to run hundreds of atms across all lover, and payout investors as well.

Without profit, theres no need a business to stay open.

I agree with you what would be the purpose of lend money or offering service ,just to pay the taxes to the state and not earning nothing with those?If were this way to share with others free we wouldnt  see any single company opened.The thing is you asking maybe to get a loan without interest,but how can the bank be sure you will repay all,thats why the interest is charged to avoid they loose.

Yeah, I agree with you, and the banks do not get the money from their trees , but they are the property of someone for which the banks do their work and in return give some profit to the owners of that money.

no anything is free in this world and no one will give you anything without benefit it's same like a bank they need profit to pay their staff.

It makes not much sense if you give somebody money and get the same amount back.
You have the risk of losing it without any advantage for you.
The interest has to cover your risks.

Tell that to Germany in the 1920s. They thought they could just print all the money they wanted to pay off all their debts and it lead to hyperinflation. The more money you print for no reason, the less it's worth. That's the problem with your concept of "free money for everyone." If you just print money for no reason - if the money isn't linked to any actual value that has been created - then it is worthless. Money has value because it represents something that already exists that has value.

that's why i hate them, actually banks have nothing, the concept like this
rich people has lot of money  --- saving on banks ----- aka deposite
poor people looking for money --- loan from banks
while bank they are just took some cost from those transaction, in my country you will cost for everything you've done saving money, losing your card, transfer and so on

Bank need money to so they loaning money for you and reciving it from your with %. It's very simple and it's works, people still using banks insteed bitcoin  :)

Why the banks gives money for free. Nothing is free in the world.

People using banks more because they are unaware of the bitcoins and the benefits that bitcoins brings with itself.

Do you want to get an inflation?

Because that's how you get an inflation. ::)

Not just Germany, countries all over the world suffer from inflation. You have cases of hyperinflation popping up now and then.
Apart from Germany, Zimbabwe is a good example. Leaders can easily destroy countries by their recklessness.

Nope. The tax protects from inflation.

Yes of course, Germany is just my go to example because people don't generally equate hyperinflation with the western world. I actually bought a 100 trillion dollar Zimbabwe note on eBay as a novelty. The currency had more value for westerners who thought it was cool than t did for anyone trying to use it as a currency.

Exactly described, just think of lending our bitcoins. Why we were lending our bitcoin after getting proper collateral. The same is taking place with the banks in different schemes. It is beneficial to users as well banks.

Why would the bank give out free money? I just do not see any sense in doing that, if the bank gave everyone free money then there would be no reason to work.
The bank needs to make money to so they loan it.

Banks basically make money by lending money at rates higher than the cost of the money they lend. More specifically, banks collect interest on loans and interest payments from the debt securities they own, and pay interest on deposits and short-term borrowings.

The banks are businesses so they will not give out money. They are loaning it for a profit which is fine. The problem is when banks make mistakes or defraud the people and instead of having to take responsibility, they get bailed out by the government.

As miners were needed to have a successful transaction of bitcoin, lot many employees were used to make the banking system run perfectly. Miners earn through transaction fee. Here in banks they use the different schemes and with those interest and profit employees will be paid. This is the reason why bank don't give anything without certain percentage of interest.

Banks right now if you are not a worker or employee of the company you cant get any loan from any banks.. they sure that you have a job.. so that they can deducted some % of your monthly job..
And i think this is not a scam.. they are just want to make a profit thats why they putting a interest for each loan..

Yeah it just does not make sense for the bank to give out free money. They have to pay there bills and the people that work there ass well so they have to make money so that is why they give out loans.

They wouldn't be called banks for nothing. If they're giving away money, might as well call them a charitable institution. And where would banks get the money that they intend to give for free? Although sometimes they do that as a promotional campaign, but that is to entice more clients to use their offered services. They give away travel and vacation sprees as prizes when you apply for loans.

thats how their business work my friend.. thats how they get their income :D

Of course I don't agree, I call this bullshit. Why would banks give free money? First of all nobody gives anything free to nobody. Second you don't know anything about banking and taxing systems, banks work that way and make money. They accept your deposit and give you %10 per year, then they give loan (your money) to other people and charge %40 or more per year. That's how they make money.

I think banks do not really give free money and yes instead they lend it to people as loans because this is the only way that they can earn money or earn profit. This is the only way how they can circulate the money on this type of business. Loans are actually encouraging a big amount of profit just like lending. The interest for every monthly payment if you are going to compute them this is really high enough.

Simply because theirs no such bank institution will give free money to others because they cannot get profit with it, if banks really give free money i think they will get bankrupt because money is profit for them and they are not looking tpoo give it free,

I think it is an advantage to themselves, they lend money to the user and will probably return it with interest money

Bank operate for profit and maybe all of the business around the world, so obviously they would not give free money. The money they lend are the from depositors of their bank who also receive a small amount of interest income per annum. It is a just a matter of utilizing depositors money at their advantage.

If they give free money, no one else will work, and so the whole system collapse. Next utopic economical idea please !

What are you trying to say? Loan is not a scam its a chance that you can use your money that not yours but you can use it in emergency or daily need so why do you think it is scam? And why the banks dont give money ? Ifthey give money how they earn. They working for money to earn money not to give money to others.

It's a scam in the sense that they give you money that you won't be able to give back and make you spend it. That's the way the 2008 crisis happened.

It is true that banks are basically loaning money into existence. The whole economic model currently is based on the fractional reserve system, which basically allows commercial banks to control the currency supply as well as the government.

But they wouldn't want to overinflate the currency base either. If you give free money away, then it's basically hyperinflation. Banks don't want that to happen because they are using fiat as well.

Lol banks have employees and their owners would need to be paid. so they borrow the money another customer to customer and benefit from interest earned and that is an advantage in the can by the bank? profits that used to pay employees. usually there are other ways to profit from bank

Why should the bank give out free money that just do not makes much sense at all. The bank also needs to make money to keep there company running so giving out free money is not a option at all.

Yeah no one would give a random someone free money that is just not how things work. Everybody needs to make money and giving away free money is just never a smart thing to do.

yeah this is a stupid topic I think. Where possible the bank to give money to everyone free of charge?
they also want to benefit and income? so they are also trying to earn money and profit it by lending money to someone

bank is a moving company and services for profit they provide services for the storage of money
which will save users money on loan to someone in need and they benefit from the interest, banks will not give money freely its strange topic

bank also entities and government-owned enterprises by someone. all companies do not work for free or supported by the state budget funds. they are given the capital to be able to make a bona fide company and provide benefits to the owners or the government. so banks are also looking for a profit also mate

a quick answer to that is if bank are giving free money no one will work anymore, people will just go to the bank and get the free money. bank gives loans to people so that they could profit from them also. its just like a give and take relationship,

Banks are just businesses and need to make money to pay employees like everyone else.

Who do you think pays for those beautiful golden parachutes that the fat cats get when the are given their walking papers, we do the users of their product.

Yeah, the banks made their money from deposits of the people because they will use it to lend the lenders in the market with an interest higher than the interest given to the depositors, its a matching business.

This question made me laugh.Banks is also a from of business they have employees,workers,executive and any other people just like a normal business.Just like any other business,a boss must pay a salary for each employees and the money they offer for  loan is the money which they pay for salary of employees.Thats why bank cannot just throw money .

Exactly, bank have also expenses and they don't get the  money they lend as donation from other entities, they even need to meet certain targets to have a profitable business and to pay their employees, for them focusing in loan could generate a higher income.

At this point I thing everyone here would agree that we need banking services but we don't need banks.

The World Bank states there are 2.5 billion adults without a bank account - this is huge opportunity for technical innovation.
 
If wish we have serious bitcoin foundation promoting Bitcoin as solid alternative to traditional banking services.

 

Yes they need profit so they can sustain their business and they have employee that need to get their salary and also banks need also to pays advertise so they well be known, the reason they dont give money its because its their business business not intend to give its not charity intitution and they loan the people save moneys so they can get retureturns witb it

You hit it right, they are not a charitable institution as they are in business, and to think of business banks want huge money from their customers even charging big loan interest and hidden charges, so we should always be careful also with borrowing to a banks as we might be surprise every time we default due to big penalties.

Actually banks are giving free money. Banks I'm talking about central banks. And they are giving free money to commercial banks. (HINT: Negative interest rates)

Banks will give loans as a way to raise money for themselves on the interest charged and it has to have a going concern as a business to continue existing

I think they do it to make money for borrowers. I think the banks make a profit using the monthly payments so they can get a little extra money to develop the bank

Nobody wants to give free money. I think banks loan the money for their own profit. They also need operation fund to serve people. Do you think where did profit of a bank come from? It's from interest. Also banks are used to control the currency value. If they gave free money to people, the currency value would be worthless and people become lazy.

yeah bank also is an effort by the government or the company they also make a profit dude. so they will not give free money in vain?  but they maybe give free money to charity ? but not every time it happens and not everyone can get it

TIL that Islam bank loans don't have interest.

But seriously OP, giving away free money would just make it's value plummet and we would move to some other currency / commodity that does actually have value. It's like you can't sell air because it's pretty much everywhere.

yeah of course banks also have employees and they also have  a boss with need a salary and income
they are not a social institution that gives free money to people ?  they are a company so they benefit to the operation of their company

One thing is certain that I know about banks, they rely heavily on lending in order to sustain the business so if they will give it for free they will close their business in no time.

Of course they are loaning cause they want a profit from it, even its long term they want a small profit.

It is a question of socio-economic organization of society. In the countries of the former Soviet bloc, banks play a different role than in the western world. Islam on the other hand, generally prohibits usury. There are many nuances. Japanese for years enjoyed zero or near-zero interest rates on deposits with the idea to support the development and country. Can not be answered unequivocally.

But in totality, banks are profit oriented organization, they only operate because of money. They are in business of trust and they are governed by the state so they need to follow the memorandums the central banks issued from time to time, if they have loan program you can assure that the interest is justifiable in the area but some banks go shady with hidden charges and they are most likely penalize by the central bank.

The wouldn't be called banks if what they do is give away free money. They'd be called charitable institutions. Banks, much like other businesses, are in it for the profit, which is the end goal and main reason why we establish businesses. There is an old saying that coin is barren, and should not bear interest. Banks, obviously, don't believe in that saying.

Well thank God I don't need any big loan like a loan for the house cause I have already my house. If didn't in my country disguised interest rates can destroy the life of a person , the banks makes a lot of advertisements like you pay 2.5% interest rate for first 3 years and 0% for last 4 years, but in between as the loan for a house has a minimum of 18 years of mortgage repayment the real interest rate or the average per year is about 28%. Now this is a plain robbery if you ask me.

yeah but certainly to attract new customers to come they will give gifts or free money to loyal customers and had transactions that often? so that they get a good promotion and gain new users ?  banks sometimes give gifts to its customers when they have promos

Are you encouraging communism, where everything is provided? If so, please stahp.

Banks are businesses. They are built to make profit while providing a service. They are good at what they do, is all I can say.

Why would banks give out free money? There isn't any purpose for it and the person interested in taking out a loan didn't work for it, so they don't get it. For all the communists out there; equality means an equal opportunity, not an equal result.

They loan it because they got the money through providing something for other people, and take that money and make more off of it. It all makes sense, and they don't give it out for the reasons I mentioned above.

Banks loan currency so they can get an expected return when the buyer brings it back. There are a lot of factors that go into what the interest rate for said loans will be.

However, if they knew that the borrower was going to blow his money away, they wouldn't lend it.

Adverse selection problem, interest rate is part of the collateral.

The banks use people`s savings to give loans and to pay interest for all the deposits.

You should read more books about economics and finance.

Free funding?Really? ???

If banks give out free money, then the currency base will expand infinitely. The loaning part is also giving banks a bit of profit, so that they can sustain in this huge fiat scam of our world.

Banks want a slice of the profit, under the fractional reserve scheme.

Because giving out free money just would not make sense, the banks need to make money to so if they would give out free money they would not make any progress in making money.

this is such a stupid question why do you think banks cant give you free money if they give you free money they need to give everyone free money. I dont think that they have enough to just give everybody free moneys...

Banks have operating expenses like pay salaries, utilities, building rent and other consumables so they need an income and for them to have income they have to come up with a money making idea like loans and they earn from interest, aside from the interest they also earn from the penalties paid by depositors who did not meet a certain amount of account balance per month.

Definitely, they are operating in business and they cannot operate without its people, bank have employees, like, (tellers, cashiers, managers, accountant, auditor, loans officers, middle and top management).

All of them needs to be paid in order to function and operate in banking hours, without your bank income you cannot pay them and there is no operation, pretty simple right?

Yeah its pretty simple and in addition to that why would it be called a bank anyway if they give free money?  ;D

I afree with you. In addtion to that, banks get interest on loans so that they will have profit not just to be used as a payment to their employees. The bank also needs to pay electric bills.

I do not mind for the banks to earn money. They provide a essential service service to the society. When they use bitcoin, they can make more money.

Yeah that is what I mean the bank have a business to and they need to make sure that they also make money. So giving out free money is something that nobody really does.
They loan it but you will have to pay extra back so you actually pay money to loan money.

This is because banks technically own the money and they only let you borrow it.

If you let someone borrow your phone, do you just give it to them or do they have to return it afterwards? Common sense.

What you're describing is communism.

Banks don't give free money because they are just another business establishment. They need money to pay for their employees, electric bill etc. The money that can be loaned in the bank are their money and they are just taking profit from it and why would they give it for free if they need money to pay for their employees, bill etc? it wouldn't be called a bank if it gives free money then.

The answer is that simple that when you work why do you get money, even you can work for free. Since the business entity i snot to do charity but to earn the revenue out of it so they charge the interest on the loan.

Banks are business, ofcourse they wont give money if they cant benefit from it. they were earning from the interest of loan and penalties from the depositors. banks are not charitable institution to give free money to people.

well yeah you can work for free though if you dont have any habits of doing stuff for free you will most probably choose to work for money especially nowadays when money is really important

banks give loans because they take back a huge interest from it thus it brings them a lot of profit, also they loan out the depositors money, thats why banks are evil, BASICALLY: THEY MAKE MONEY FROM INVESTORS WITHOUT HAVING THEIR OWN MONEY

How a bank gies out long is basically just a pyramid scheme. It is not the banks money that they are lending but in fact it is someone elses money that they loan to another person.

I will agree if you volunteer and will not expect payment from your hardwork!  I don't think loan is a scam.  Reason is that they are the one giving you the money that you DON'T OWN and just add a certain interest per month.  If you look at the scenario, bank system involves peolple that needs to be paid, operation bills like electricity, water and maintenance.  If they offer loan for free, where do you think they will get their payment for their staff and oher payables?

True that banks usually just wait for their customer to give them work which will include by depositing their money which is really not good for us due to they will give you only 1% of the interest when you let them save your money but when you loan money from them they will process a 7% interest I am not sure if all banks usually do this but this is how its done on my part which is too sad to imagine. This is the only how they can grown in business and they will never give free money for any of their customers.

Actually, typically the individual's interest rate varies between 0.150% and 0.550% (at least in Canada), however loans aren't placed at 7% and more like 2%-3%. This is done for the reasons you describe; so that they can grow their business. And to be fair, what they do is fair, since you trust them with your money and you use their service for relatively cheap, they are allowed to loan out the money, as long as they have enough to give to you if you request it.

They do not loan out money for free because it does not makes sense to give out free money would the bank do that, they also need to make money for them selves.
Nothing is free and you have to pay or work for it this is really a stupid topic.

The reality is they even steal our money so no way the will give free loans, people are greedy but banks are more than that, they are a profit oriented and there are shady transactions that banks does.

I agree with that totally. There is nothing free in the world. We can transfer money domestically for "free", but we have paid in other ways.

Banks are not only made to safekept our money, banks have evolve into a business monster. Banking system is a legal way to cheat people that is to use the money against the depositors. When you deposit your interest is low but when we make loans the interest is so high where in fact it is our money that they use for loans. That's why many are shifting to bitcoin  as a revolt against banking system.

Banks are giving free money! Leave a 1000$ on your bank account for a year. In the end of the year you should have something like 1002.5$. So 2.5$ for free! isn't it good?

LOL! That is not free even if you money increase because the inflation hits you in the head, your moneys worth is bigger before you invest it, just put it in bitcoin.

Its not free its an interest of staying your money in their bank its because they able to used your money to lend money to other banks or client and they can earn interest for your money. Bank is a form of business and no business will give a free money.

How is that? So I can come in a bank there and ask like 1000$ loan and I will have to bring back the same money without %? If so then there is another question - from where that bank takes money for it's workers salary and taxes?

And they have lots of operational expenses so there's no way that they'll be a charitable institution by giving away 'free' money.

People will only help you if they get some form of compensation for their effort whether it be in terms of money, favors or just personal satisfaction for having done a good deed. The only way to get something for free is by achieving/doing it yourself. If loans are scams then society itself is a scam. That or you're truly naive  :P

because this istheir business, banks collect the savings of the clients to used for loan of the other clients, also when clients avail loan to the bank they incurred interest and some interest was posted to the savings of the savers, for example most of the banks was used 0.005% for the interest of the savings of the clients while if the clients loan to the banks they incurred 3% interest from the clients, thats why if the rotation of the banks were broken they have a posibility that banks will turn into bankcruptcy.

If the banks give free money, how they will pay their worker that work at the bank ? and with loan, bank also can get an interest and the money will be back too.

 Because  If given free dont exist that work :D

You are hundred percent right.
The OP claims here that loans are a scam.And you think that bank should give money without any interest right?
The problem is that nobody will give you money without interest rate,because it is just not worth it,that person would prefer to have his own money,than to loan them
to you,and what is the point of giving them to you,if they get nothing else than their money back from it?
It is like saying " why people dont throw money on the streets,it is not right " because no one in this world will give you anything for free.

Banks are into business and we know that when we are into business we always want profit and giving free money will not make a sense and it will just teach people to be comfortable in life and be lazy.

The bank never gives free money to the citizens. They force people to take loans even if it's not required by bringing up new schemes, to attract people. The only one who gets profit is the bank itself. !

Even more, banks have a lot of money and they do not know where to loan it. For example, Switzerland banks are full of money, some of them just give loans not less than 500 millions USD.  ;)

what you are telling is perfectly correct. Bank will never give anything for free, their will be something hidden charges, which they reveal it after they make you customer. Banks are maintained by corporate who are working for only their profit not for community service. That is why Bitcoin should be used so that you wont be charged unnecessarily for any transaction or other services.

Nope, I am not against of interest free loans but I favor loans with low interest rate. Let’s keep bank’s income aspect aside for a while and think on a macro level. Although there are four big resources (land, water, man and money) the most important is money factor. If banks start giving free money there will be no appropriate distribution of money and those who can produce more might get low amount and those who can’t produce or produce on low level might get high amount. It will affect overall production of economy. Since banks charge interest a high producing man can get high amount as he is willing to pay interest and low producing man will not take that risk since he knows his abilities. Taxes are not the only solution to growth, production is also a factor and many others too.

Well they obviously need to make a profit else they can't afford to pay their staff.
Banks are one of the most commercial parties ever and not only that, they got a lot of influence in almost any aspect of the financial markets globally.

I agree that bank never give free money.  @Bitcoinbox, that is called interest for using your money to get profit.  You should know that the moment you deposit your money in the bank, it doesnt stay there.  They use it as loan to other people or venture it to another business.  All left in the bank is that papers, receipt and folders including the record of your transaction.  @PokerFace3 and btcdevil, well even as evil as you think bank is, they have given lots of people a job.  This charges and other stuff (profit /earning) is needed to payout their staff, and maintaining their smooth operation.

They dont give free money instead they loan it because this is the use of bitcoin where they can earn for interest for every company loan in their banks..
If you think that banks only for saving purposes thats wrong they do this service to have some money to loan it to other company to use and to earn via interest..

well why banks should give the free money? i dont think that anyone will give people free money ever, in my opinion they loan the investors money to make more money and thats not good

 ;D  Why would bank give free money?  If you have a money on that bank, would you like your money to be given away?  They loan it for the sake of having income.  It is for them to pay their employees and to give an interest to their depositors.  They loan it because bank is a business.  That is one way of having income.  If they will give free money there will be no bank available right now. 

Yes, banks is a business and they loaned it with interest to have an income. Income to pay their rent,employees,and other utilities etc. They don't have unlimited supply of money.They just loaned the money we deposited and the cycle goes on. 

They don't give money because banks are not charitable institutions, they are having a business. The money that the people deposit have interest of around for example 1% annually and then they lend it to people for an interest of 10% so the difference of 9% are their earnings. That is why they are eager to loan the money but making sure that the borrower will be able to pay them by having collateral.

i hate banks and honestly anyone who know how a bank works will hate them too.we are smarter but those who likes on normal houses do belive banks blindly they said they will dye but they will trust banks forever

True only charity give away money which is actually not theirs too.  Anyway, in order for bank to grow and sustain it's operation, they need some sort of profit.  That  is thru investing your investment money to some they thought a profitable venture and giving you the dust of the profit from that venture.  And will you give other's money to others? Of course not.

Even then they don't need people to invest a lot or take out loans from them, they can rely on the government to bail them out if things get too bad. As long as they're big enough, they can be bailed out. They like to give bonuses and things to the top people though loan money and so though, so they are making a fair amount of money for the people themselves.

Then you are creating judgement day soon.why bank do not give free money?do not ask that irrelevant question again.ask youself will you give free money to anyone?.😂
Definitely not as you earned by hardwork.tax are necessary to run country economi and to create stabiliy.

In finance, a loan is the lending of money from one individual. A direct auto loan is where a bank gives the loan directly to a consumer.It’s no longer about expecting the banks to give you credit; it’s about being aware of multiple ways to fund your business and preparing to try a few different sources.

i also hate banks and i try to use it as less as possible though sometimes i need their services when im buying something online from a shop that doesnt accept bitcoins

Well i dont hate banks i hate those people who ask for a loan and doesnt repay, making the banks to raise their tax. If i request 1000 dollars i will pay 1300 dollars, if you have 1000 dollars at savings this will give you 1010 dollars with lucky. Soo the huge difference between its insane as you see, but honest people pay from the debit the wrong people let at the banks. Soo why dont you op pay my bills as you wanna to get free money? The same way you pay to eat banks offer their services and they take their fee as everething.

If the bank starts to give free money our people will become too lazy that's very true

banks make money from the investment the do and the loan the give to people so that the can pay there workers and keep the business going

i will advice banks and government to provide loan with low interest rate to people so that the can utilize there talents or capability

that is the best way to grow a country

Yes, by having this is one way to pay for their staff and to maintain their bank running.  Where else they can get their money if they would not put interest on loans.  And this is also where they get to fund for their depositors interest.  This principle is being applied even before the time of Jesus.

banks don't give free money because they want to earn more money, so they give unfair loans just to earn a lot of money from their customers, from people that needs loans

do you think that the free account which most of the banks are opening, there are some hidden charges, for examples here in my area Allied Bank is offering a free account with the name of MUKAMAL account, fee check book free maser care fee transaction and many more so do you think that they will have some hidden charges?

The banks search for the profit and earning that's why they offer the loans with interest usually. Otherwise they will lose money as their income is from this interest.

Why would they give money of course it is their business.  They loan it so they have money to pay to their staff and for the utilities.  It is also another way of paying their depositors their interest.  And that is some peoples money and they have no right to just give them away.  It is a hard earned money by people who works really hard.

Banking is business,why putting up a bank without earning?No bank give money in an instant,you deposit,invest and even apply for a loan.When you loan money in the bank,there are lots of charges, those charges are there income,you pay the loan you pay the charges .

I have  a question for you, Will you give free money to the people ? No one can give money to someone without any profit. If you and me are not agree to give free money to the people then how would we expect it from others ? And i think banks help us when we need money and when we are in trouble so they deserve to get some profit in return.

Why would they give free money? Do you give free money because someone needs it. They Loan because they make a living from it. Yes, it is a robbery but you will have to take a loan of you need money. They give you money, and you have to pay the back with interest. That is business to them, robbery for us.

According to me the Loan Giving Facility Of Banks is A Nice Facility For Those Who Can't Have Own Money To Start A Business.....
And Also They Loan Money To People For Earning Interest From The people and It is way of Growing Money For Banks.......

Why you need a loan for that? The state, can give you a subsidy, with money from the taxes, to start a business.

banks are alive because of loans ee get some money grom them and we pay it to them later but with a little profit.this thing is far more worse than trading but it is possible for nanks necause they have all the money and if they dont they they will make new coins

Yeah if the bank would not charge interest on loans the banks would make losses. Who would repay his loan If money is free? Just take out another loan to repay the old one.

Banks need to make profit, it's normal they ask for an interest because lending making comes with 2 risks
- Not getting paid
- Not getting interest

On the other hand they need to make cost.
Hire people to make sure every loan request is from a honest person.

Banks services allows anyone to get extra income from the savings, soo the loans must cover the risk, as the bank isnt lending its own money and the costumers money. Soo your savings get interest because banks invest your money into lending as some others ways.

Yes, that's how it works, thy don't get the money for free so they would also not give it for free. In the first place, banks are not charitable institution, they are here for business and the aim is to make profit so they would lend it for interest and other corresponding charges as that is where they get their income.

In addition to it being a business(and owned by a citizen/citizens), money is limited so if everyone could get 300k then the economy would fall apart or there would be mega inflation and it wouldn't end cause the govt would keep printing money in order to continue giving money.

Well in a way it's not scam, but they do have the ability to print a lot of notes and coins. For a bank a loan is just a computer entry of a particular amount, and they really don't have to lose anything much. This infact is what bothers people who are in debt.

I am not sure if a wise person can have such question. Banks are not charity enterprises and they want to make money also if they give this free money inflation will increase 10000...%

If bank started to give loan without interest than they may have to start taking interest from their account holder to keep their cash safe in bank known as negative interest. Actually all cost of running bank and profit is generated via loan in most of the case.

People don't trust each other, that is why banks are loaning money to people. Banks are the trusted middle men, who take money from the lenders and and give them to the people. For this service, they cut a fee. There are people who are afraid to ask for money from their own fathers or other relatives, but banks are there for everybody.

Banks offer to loan to create more money, only to offer it again for someone in need to create even more money! Well honestly, I view banks as middlemen for the wealthy investors wanting to create more money and for the average people wanting to borrow some money in order to grow their own. Banks only officiate the loan, creates terms for it, and impose an interest rate on top of the loaned money. That interest would then go to the bank after the money is returned. Banks need to do this in order to profit, and it is simply a business, that's why no bank has ever given the masses free money because like us, they need to earn something.

Do you work for free?
Paying for loans helps to create efficient businesses. If money is free, production does not need efficiency. Key word is balance. Banks should earn, but not much.

Nope it's part of thier business to have profit when loaning people who need money,like what people investing in bank they have profit of 1% yearly investing to it, but the investor money use by the bank to loan people and earn much higher income than the true owner of money it's called bussines strategy.

I don't think it's how the banks works. Because banks also need money to pay their workers and if the banks give free money, people on that country no need to work and their country will be stagnant.

Have you heard of the term Islamic banking?
Lending money for interest is forbidden in Islam.

The loans will be replaced by subsidies, in the near future.

Banks are business thats why they are not giving free money loan is one of their business that they can give interest depends how much you loan..
This is the only business that they can get interest for every each borrowers.

Very well explained sir,  banks do those things in able to earn more money. They make loans on people so that it would gain profit in long term and they uses the   money of the bank depositors itself especially to those  big  holders. Bank wouldnt exist after all if they dont do those things.

I do not think it happens it many countries, only rich countries can do it.

loans are only one of the many ways banks use to earn mony but essentially yes, they give out loans and take it back with a lot of profit over time to make a good business and earn more money.

Some people just want free money because they can't get a job or anything similar. They want to go and complain to the banks, those who have money, whoever, and they want them to give them money because "It's not fair they have the money" or whatever.

Having loans and interest are some of the better things to have, it makes sure people don't become lazy or complacent.

well yeah but banks actually make a lot of money out of people deposits, i think that they could give people free money but they are too greedy

If they just give free money nobody would work. And interest from loans is how they make money mostly. That is the system where rich get richer, and that is why they loan it, to keep us in slavery and to make us to work to give them back the money.
That will never stop, sometimes I wonder how will bank accept blockchain when they have system that work quite good for centuries. Its gonna be tricky when they make some decisions.

It's very simple, a bank is nothing different than any other company in the way that it needs to make profit. Look at it from that point, and ask yourself why they would hand over free money to people? Doesn't make sense, right?

yeah banks just cannot give out money for nothing, its their business and there is no reason why they should do that though thats just my opinion

It is easy to give millions of dollars people. If we are all rich, nobody will work, so your money is worthless. Hyperinflation will happen!
That is why only a few can be rich, and the rest has to work (for the rich).

This is absurd. Imagine yourself giving your money to everyone. You can't, can you? :) If all the banks in the whole world would give their money to people, then money would have no more value. We will go back to the barter system where we trade goods in exchange to another goods. Money has been a strong force for people to work their whole life, if banks just give money away in exchange of nothing, then people wouldn't work anymore.

For sure it makes sense, as you stated banks are companies, and well they give us money as long we save or apply it at them, soo the question is they charge a high fee and pay a very low interest, soo those should be readjusted as the money from their services come from their costumers.