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

[MingLee]

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.

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[Pitchblackroom]

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.

[davis196]

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

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?

[hermanhs09]

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.

[maudevang]

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.

[Chrismeister]

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...

[lemipawa]

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.

[Hatuferu]

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?

[Nouelle-Hunter]

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? 

[Cybertron00]

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? 

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.

[Documan]

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? 

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.

[newcoins1978]

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.

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.

[pandalion98]

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.

[Seansky]

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.

[bitcoinisfurture]

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.

[lienfaye]

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.

[pearnapple]

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.

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

[stiffbud]

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

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.

[serjent05]

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

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?

[sallymeeh27]

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.