Should Banks Give People Loans?

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One of the main causes of the financial crisis happening was the fact that banks lent people too much money. However, there are both negative and positive aspects to this. One positive aspect is that people can start and develop businesses with the help of a bank. Also by lending money the banks can help homeless people get a house and the necesseties that they require. The negative aspects of banks giving out loans are that people might want the money for unnecessary things such as a designer watch. Another reason is because banks would be losing money because not all people pay the interest fees that they should. In my opinion, I think that, despite the fact that loans help people, loans should be given out less because not everyone can be trusted to pay interest fees back to the banks.

Comments (9)

  • Boutcher-logo-250x250.jpg impartial_panda_bear
    Boutcher C of E Primary School 07 Dec 2018

    Hi humorous_solution, I loved your post. Like you, I think that banks/bankers should loan people money but after checking their credit rating. This would give them some idea of how reliable this person was, how trustworthy, and if they can probably pay the money back or not. Personally, if I were a banker, I wouldn't give money to a homeless person as if they are homeless, they aren't going to be the most wealthy, or the most likely to pay back money. Also, I don't mean anything by saying this but most homeless people are homeless for a reason. This then means it IS possible for that person to be into drugs or alcohol, making that person the VERY OPPOSITE of what bankers are looking for. I think that this is a reason I wouldn't give money to a homeless person, although it would be BRILLIANT if they found a home. I think, if I were a banker I would think as a Very serious business man and NOT do what is best for actually that person like I normally would, instead I would do what is best for my business or bank. You may think I'm mean but eventually, it will pay off.

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  • The-Ruth-Gorse-logo-250x250.jpg helpful_wallaby
    The Ruth Gorse Academy 09 Dec 2018 in reply to impartial_panda_bear's comment

    I do not agree with you 100% as when you check somebody's credit rating, that may be contradictory to how they are now. What I mean is that, if you don't think someone is able to pay back their loan, you could be wrong. That person may need it for something which will be worthwhile in the long run and therefore that out-ways the fact that the banker does not think this person is able to pay back the money, as they may be wrong.

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  • Hanson-logo-250x250.jpg hopeful_panda_bear
    Hanson Academy 10 Dec 2018

    i disagree with what you are saying due to the fact that when banks give out money people just abuse it and then they buy stuff which they do not necessarily need people who do not abuse money and actually need it use it when needed
    the worst thing about banks giving us money is that us people have to pay more interest back and if people were poor they could not do it
    in a way i do agree just not alot

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  • Olivia-Avatar.jpg Olivia @ the BNC 10 Dec 2018 in reply to hopeful_panda_bear's comment

    You make an interesting point here about spending money on things that aren't necessary. Can you support this with an example?

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  • Hanson-logo-250x250.jpg hopeful_panda_bear
    Hanson Academy 17 Dec 2018 in reply to Olivia @ the BNC's comment

    What i mean is when people are borrowing money they are then abusing it by buying drugs and alcohol when there could be people who need this money and because they are giving it out to some people who need it for the most ridiculous things are getting the money and people who need the money aren't getting it and it shouldn't happen

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  • Tiff-Avatar.jpg Tiff @ the BNC 18 Dec 2018 in reply to hopeful_panda_bear's comment

    Well done for replying to Olivia. Do you have any evidence of people borrowing money from banks for this reason? If not, try the challenge what you have said.

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  • Hanson-logo-250x250.jpg hopeful_panda_bear
    Hanson Academy 18 Dec 2018 in reply to Tiff @ the BNC's comment

    Well there was a documentary on the internet because people who are addicted to drugs are basically saying that they need the money to pay for a house mortgage when they don't really they are getting money and using it for drugs then the bank doesn't have enough money to give the people who actually need it

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  • Claire @ the BNC 19 Dec 2018 in reply to hopeful_panda_bear's comment

    Hi hopeful_panda_bear, what was the documentary? It's good to provide the links to your research to back up your reasons!

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  • Hanson-logo-250x250.jpg hopeful_panda_bear
    Hanson Academy 19 Dec 2018 in reply to Claire @ the BNC's comment

    https://www.google.com/url?sa=t&source=web&rct
    That was the link I read

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