Discussion»Questions»Finance» If you go to the bank for a loan you have to tell them how you will use the money. Doesn't every loaner of money have that same right?
Every loaner of money has the right to know what the money will be used for. Equally, every borrower has the right not to reveal what the money is for, but that will probably forfeit his ability to borrow.
If I'm lender I want to know what the money will be used for. To buy drugs? To murder someone? Fuggeddaboutit! If the need for the money is on the up and up there is no reason to withhold that information from the lender. Of course people can lie and they do. I have no control over that. I would never ask for a loan without being fully prepared to give all the details of how that money will be used and how I will repay it and when. Thank you for your reply Louie and Happy Wednesday! :)
That's a sticky one. Personally, I don't think it's the bank's business what the money will be used for. What if the person changes their mind and uses it for something else. I think a bank's main focus should be the individual's ability to pay back the loan.
If I asked someone for a loan, or if someone asked me for a loan, I feel it would be prying to ask or be asked for the reason.
On the flip side, I wouldn't want to loan money to someone who wanted to buy drugs or to someone who told me they were planning on giving it to their abusive boyfriend who refuses to find a job.
This is a very good question, but there are so many different variables, with grey areas, that it's a little difficult to provide a clear cut answer. There's merit to the various arguments.
Thank you for your thoughtful reply PC. Here's what I think. If the reason for the need is on the up and up why would you resent letting the lender know? I think you wouldn't. You would be appreciative/grateful for having someone there to help when you needed it. I would not want to fund a murder for example or to buy drugs or hookers or a heist. I think the bank has every right to know how that money will be used. If you are in need and you expect someone to fill that need you OWE the person the reason why. Just my opinion m'dear. :)
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