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Why would anyone lend money without interest?
by romski 7y ago
Why would anyone lend money without interest?
- colejohnson66 7y agoShould probably add: why would anyone lend money without interest to someone they don’t know?
- darkpuma 7y agoRight, lending money without interest is pretty common within families and trusted friendships. But obviously the amount of credit available loan free from friends or family is going to be significantly less than what a financial institution would give you.
- ianai 7y agoBecause there’s a very substantial system of laws and governance enforcing the terms of the loan.
- colejohnson66 7y agoBut if there’s no money to be made, why would a business bother?
- rootusrootus 7y agoWell, if you can basically create money out of thin air, then the interest rate for loaning it out ought to be pretty low.
- ianai 7y agoEspecially when you will be bailed out by the government.
- apta 7y agoOne reason is purely out of goodwill, to help someone out. Another way is to invest your money (which is basically what a lot of people end up doing today), this can be viewed as a form of lending, but with the possibility of making profit. So if someone wants to take a loan to start a business for example, you lend them money to own a portion of it, and hopefully get something in return. Basically what VCs do nowadays.