Hello Hive Learners Community! Welcome to my blog. Money is the need to fulfill the necessities of life. Without money, we are like dry land that is fertile but is unable to produce anything. For seeking money, we had to do many things either we like them or we hate them. Nowadays, we can get money through many means. Even Some people sell their organs or blood to seek money that is much needed for the completion of their desires. Some people like me who love life, and don't take life-threatening risks seek money by taking loans. In this short life, it is too hard to find a person who has not taken a loan directly or indirectly. There have been moments in our lives when our money has become short and we have to seek help from others.
My Worst Loan
When I entered University life, I was impressed by elite-class student's dress and their vehicles from the beginning. To adopt a lavish life, there were many desires in my brain. I was very disturbed because the pocket money I was receiving was not enough to buy brand shoes, brand dressing, and a new motorbike. For these desires, I couldn't disturb my parents because already they had paid a lot of money for the University admission fee, hostel fee as well as first-semester fee. I was looking for different means of getting loans in Multan. I found many options but a loan from a bank was looking easy to me.
On the next day, I visited a bank near to my University collect information about their loan schemes and if possible I would collect a loan from them. The bank staff was looking friendly and they introduced me to different loan Packages. I selected one loan package with less interest rate. They were naming this Package as the Student Loan Package. I was glad to know the requirements for this Package. They informed me that I would claim this package on my CNIC. After thinking a lot, I submitted my Copy of CNIC and collected 70K PKR with a 5% interest rate for two months.
I was happy to find money that was enough to buy brand shoes, brand dressing, and a new motorbike. On the next day, I bought a new motorbike for 50K PKR, and the remaining 20 PKR was spent on new brand shoes and clothes. I was enjoying my life and two months passed, and I received the call for my due loan. I visited the bank and apologized to the bank manager for not paying the loan this month because I had to pay my 2nd-semester fee. He mentioned that it was not a problem,
"Have you read loan terms and conditions in the case if a student is unable to pay the loan on the due date"?
At first, I was really surprised to hear these words, but later my worrying level forced me to ask about these terms and conditions.
"Sir Sorry to say, may I ask for the terms and conditions, you are mentioning to me?"
The bank manager guessed my ignorance about terms and conditions from my question, he loudly responded,
"Our bank charges a 10% fine of the total loan for every 10 pending days from the loan paying due date. After three limits, our banks connect with the Judiciary to take legal action against the person who is not able to pay our loan after taking three thresholds"
I was feeling regret about taking a loan. I was thinking that soon I would be arrested if I didn't pay my loan with a 5% interest rate and 10% fine in the next 10 days. I immediately contacted my mother and informed her about the risky situation. She first scolded me on the phone but later she sent me 80.5K PKR from her savings. I immediately paid my loan on next day to save myself from going into the cell and to secure my future. This is how I faced this worst loan and cleared it.
Lesson I got
After the worst experience, it is the permanent learning we get from any endangered incident. Although, it was the toughest experience in my life I'm happy to take myself out of it finally. I got the following lessons from the worst bank loan.
- Don't take loans on the first note
- If the loan is essential for an emergency then take it from your close friend
- If your close friend is unable to help you, then take a loan from a bank that does have interest rates on their loan policies
- Read carefully all the bank's terms and conditions. If you can afford them then you should take a loan otherwise find money from other sources like family members etc
- When you have taken a loan, put aside every extra penny and control your expenditures until you pay the loan
These are some of the precious lessons I got. It had been years, and I was taking loans from friends but I was happily able to send the money I borrowed on a fixed date on which we agreed. In business and dealing, sometimes we have to take a loan but we should be able to fulfill our word.
This post is my entry for HL Weekly Featured Content The Bad Loan, I hope that you have enjoyed my post. Thanks!