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Resources are always scarcely being it natural, financial or other man-made resources. Having abundant resources is an ideal scenario. Along with other resources, financial resources also play a major role in our lives. Let us discuss financial resources and ways to gather them through the www .

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Money-credit:

 

The amount of money we have will determine many things. When we want to buy a house/construct house, start a company or get married etc., we usually need a large amount of money.

 

Earlier we have a barter system, where we exchange goods for goods instead of money.

As time passes, money has come into all trading actions to make the trading process more rational. The demand for money has grown up since then.

 

People will not have adequate financial resources for taking up medium or major projects all the time. So, they depend on credit.

 

Taking a loan is an option to gather necessary financial resources. People and organizations including governments raise loans to meet their financial demands. They can pool them up from organized or unorganized sources at a certain cost.

 

Organized sources majorly include financial institutions such as banks and nonbanking institutions. Borrowing money from friends and relatives and private persons come under the non-organized sector.

 

Few organizations will pay money directly to the creditors instead of giving it the borrower. For credit cards, we can get access to financial resources to the extent of our eligibility. However, for personal loans, cash will be given directly to the borrower according to the rules of the financial institution after due scrutiny.

 

The immediate form in which we can use financial resources is through cash. So, cash loans are more popular than other forms of loans.

 

Borrowers and givers of loans:

 

Due to the technological advancements, it becomes so easy to process loans. Once our loan proposal is approved, we get money credited into our accounts in a few minutes.

 

Having a robust financial system in place will ensure access to financial resources to many people.

 

Loans come and rescue in scarce conditions. Obtaining a loan is an easy way to bridge the gap between the financial resources we have and the money required to fulfill our needs/projects.

 

However, as the credit comes with a certain cost, people need to thoroughly examine pros and cons before raising a loan. People need to be judicious and careful in using loan facilities. Because taking up of loans without proper assessment will make a person or company run into debts.

 

So, the best strategy is to increase savings. Using savings to bridge the gap that we have in financial demands and supply is the best long-term strategy.

 

In order to improve the chances of accessing credit from financial institutions, it is important to maintain a good repayment history. Having a clean financial record will make your chances better to get loans.

 

For financial institutions also, it is very important to be careful while disbursing loans. A thorough examination of the borrower profile like past payment history, ability to repay principal and interest, collateral security, industry, and line of business study, the net worth of persons, companies etc. Proper scrutiny will help to avoid bad loans in the future.

 

So, it is important for both creditors and borrowers to take precautions in credit operations.

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