Earlier people used to avoid taking loans. Because they thought it would be the burden and how would they pay it with interest, as more than the principal amount borrower have to pay great attention to it? But these days there are many options to raise the loans, either from financial institutes, private or from money lenders. Some people prefer short term loans to avoid long tenure. but few people prefer pledging of their vehicle or an asset like car pledge (รับจํานํารถ which is the term in Thai) etc. Many people buy mobile phones on finance of zero percent, which is also called short term loans.

Home loans

To purchase home or renovation of your existing home, people prefer home loans. People belong, middle-class families, not have enough money to spend. So they take loans to fulfill their dreams.

Short term loans

People prefer short term loans to buy small things, like mobile phones, refrigerators, machines, etc. Most of the people buying mobile phones on zero percent interest and pay installment within one year.

  • Industrial loan

Small entrepreneur or small entrepreneur raises the loans for up-gradation of their tools. So they buy short term loans for that. There many benefits of loans for a businessman like

  • Upgrade technology
  • Upgrade tools
  • To obtain more raw material
  • Maintenance of types of machinery

If you are getting profits from these all, then definitely you will pay back the loans, but if your business is not running in good condition, then definitely you will be bearing risk. So that’s why at one time, loans would be risky, but if you can pay its installment on time and you have fixed income, then you will pay quickly. If you pay on time, your score to take loans in the future would be high.