Why the banks dont give free money? Why they loan it?

[Yakamoto]

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.

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.

[newcoins1978]

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.

[Hatuferu]

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.

[Documan]

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.

[Xester]

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

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.

[bitcoinbox]

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

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?

[Hatuferu]

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

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.

[madwica]

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

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?

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.

[Taki]

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.

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?

[Dekker3D]

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

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?

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.

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

[ObscureBean]

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  

[elobizph]

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.

[pocarime32]

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.

[won99]

 Because  If given free dont exist that work

[hermanhs09]

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  

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.

[Hatuferu]

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.

[PokerFace3]

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

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?

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. !

[HeroCat]

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. 

[btcdevil]

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

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?

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. !

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.

[Dudeperfect]

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.