Before we get into the article, it is necessary for us to understand what a loan actually is. “Loan” by informal definition is a thing or money that is given to someone in exchange for their promise of returning the commodity/money within a said period of time. The agreement is one which works well, and is one that is not taken lightly by anyone. The concept, is one that is ingrained in the mind of all, and to be very honest, it is a reassuring one. The fact that we can always fall back on an institution like Loan Street to cover us (provided we’re not completely broke) is a reason why some of sleep in peace at night.

The generous schemes of banks and low interest rates of these said loans has made it an affordable and consumer friendly option for all, thus ensuring that the quality of all our lives is collectively improved. Loans for different amenities has seen to it that illiteracy rates have dropped, thus paving the way for a more educated India than the generation before, or the one before the last. These have helped people gain the courage to dream and step out of the proverbial boundaries drawn by society for certain sects of people. Everyone is given a fair footing to make a name and place for themselves, provided they’re determined and work tirelessly to make their dream come true.

However, considering that the concept (or any concept for that matter) cannot be entirely good, it comes with its own perks and gripes. The fact that we can always borrow in case we don’t earn has stopped us from working harder. If there were no collateral, we won’t even work as hard, and that’s putting it in very plain terms. Even worse is the concept of availing loans from other sources, ones which are not proper institutions.

This often results in severe disappointment if the source happens to be family, as misunderstandings will invariably happen on one side or the other, for sure. If the source is someone like a local money lender, the interest rates skyrocket like crazy. For the sake of having money at present, you might have to work your entire life to repay the debt. In rural areas, where this is highly prevalent, suicide rates (especially that of farmers) has grown to sad heights of late.

Thus, loans and the entire concept, if taken seriously, and with proper protocol, can be a boon. Else, like everything else, it is a bane.