Loans From Banks

Not everyone enjoys financial security, as at one point or another in a person’s life, everyone goes through financial burdens that make you result to take out loans from a bank. Whether it is for personal reasons, or perhaps an advancement in your career to open up a business or a firm, the bank is always the commonplace to run to for any loan.

Syracuse, mainly, is filled with banks that offer competitive yet affordable rates,  that’s why it is one of the world’s most financially-endowed places in New York. If you are faced with the choice of taking out a loan, here are some of the pros and cons to help you make a more informed decision:

The Pros

#1. Greater trust and confidence with banks

One of the most significant advantages with getting loans from a bank in Syracuse through, is that you’ll have more trust and confidence with banks. They are naturally very established names, and to put up a bank means that they have complied with all legal matters. There are little to no chances at all that banks will be swindling you for money, or suddenly closing down.

#2. Lower interest rates

If you need that loan, then it is best to borrow money from a bank than from any other lending institution. Nowadays, banks are getting very competitive from each other. Hence, it is not uncommon that most of the banks will offer you lower interest rates.

Apart from this, banks are liquid financial institutions, which means that they have a regular and constant inflow and outflow of cash. This situation makes it easier for them to hand out low interest rates, compared with lending companies.

#3. Flexible terms of payment

When you are applying for a loan, the bank officer will often ask you about how much you can pay per month.

For example, if you are borrowing money to open up a new business, it might take a long time for you to start paying off your debt, as your business still needs to grow and earn more. Hence, for situations like this, it is to your advantage to borrow with banks, as they offer more flexible terms of payment.

Banks can go as far as ten years for you to pay off your debt, depending on the amount and your financial standing as well.

The Cons

#1. You might get trapped in a bigger hole of debt

You might think of applying for a loan so that you can pay off another mortgage. While you have paid off one debt, you can be putting yourself at risk of getting trapped in a bigger hole of debt.

Before you make the final choice with your loan, think over and over again, and do take time to study and apply the interests first. Assess yourself and your financial situation if you need that loan and if you will have the capacity to pay it off later on.

#2. Your monthly budget might suffer more in the long run

Take a good look at your monthly budget, and see if you have so much more extra left at the end of the month for both your savings and the payment of your loan. If you do not have this type of financial capacity, then you might be in danger if you still push through with your loans.

Banks are private companies; they have bills to pay, a profit to make, a workforce to pay, and other expenses that have to keep them on schedule with demanding loan payments. Banks are usually very slow in giving out an extra grace period, beyond which is mandated by law.

Hence, in taking out a loan, your monthly budget may suffer in the long run. If another emergency arises, ask yourself: will you still have enough left in the budget to pay for that emergency and at the same time, paying for your loan promptly?

#3. Needs a collateral

As banks have a business to maintain, they also usually ask for collateral in an exchange with lending you money. There are other credit unions or lenders that will charge you higher interests rates instead of asking for a guarantee. So it is here where you have to make an extremely wise choice as to which option is best for you.

If your collateral is your house and lot, is it worth risking in exchange for a little bit more cash? If you do not have collateral, will you be okay with paying high interest?


Whatever your reason is for taking out a loan, the best thing that you should always keep in mind is for you to borrow only what you need. Think it over many times, and if you feel that you do not need it anymore, then don’t push through with it. However, if you are in a position in your life where you really need all that extra cash, borrowing money from the bank is not as bad or negative as you think; just make it a habit to be prompt with your payment.