Bank Loan

By Daniel Balkwill

Bank Loans

You have to be a certain age to take out a bank loan, you have to be 18 years of age. It also depends on how much you earn. For a mortgage loan it is about 3 times your annual pay but if you are married you get more because there 2 wages added together. With a car loan you get about 3 times your monthly wage. Also how much you can afford to pay back to the bank.

Disadvantages

The disadvantages of a bank loan are that the longer it takes you to pay back the more interest, e.g. a mortgage loan of £150,000 paid back over 20 years the interest would turn it into about £250,000 and also the bank owns your house until you have paid them back the money you owe and have the power to claim it and sell it to get there money back.

Advantages

The advantages of a bank loan are that you can get a large amount of money quite quickly i.e. a few weeks whereas if you were to save up it could take years.