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

[Japinat]

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 .

[CoinFoxs]

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.

[PeRo]

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.

[krishna1]

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.......

[catch.me.if.you.can]

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.

[jak3]

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

[Mauser]

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.

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.

[wikenpp]

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.

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.

[Doamader]

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.

[Hatuferu]

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.

[etparle]

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.

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.

[xdrpx]

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.

[ecommerce]

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...%

[amacar2]

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.

[mindrust]

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.

[dothebeats]

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.

[Jannn]

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.

[Darwin02]

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

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.

[pocarime32]

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.

[pitham1]

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.