Tips on How to Borrow Money Responsibly

Debt is normal if you borrow money responsibly and use it properly. For example, borrowing money for useful things such as capital to open your own business or using the money for urgent needs.

Borrowing Money Responsibly

Borrowing responsibly means that you must be able to return the money you borrow according to the ability you currently have. When you want to borrow money from creditors, you must first consider how much money you want to borrow. Because you have to adjust how much money you borrow and your ability to repay the money. You have to be wise in borrowing money and think long ahead.

For example, you must set aside at least 20{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} of your monthly income to pay your debts to creditors. From here you can calculate for yourself how much you spend to pay your debts to creditors. Do not let you borrow money above your ability to repay the money. Be wise in borrowing money from creditors and borrowing money according to your current ability.

Debtor’s Rights and Obligations:

A. Debtor’s Rights:

1. Receive a number of funds borrowed from the creditor.

2. Using the funds according to their designation.

B. Obligations of the Debtor:

1. Make credit payments according to the date agreed

2. Paying fines and administrative costs if late in paying credit.

3. Submit material rights of debt collateral objects.

Tips for Getting Loan Approval from the Bank

Just like other places that offer money loans, banks also have the right to refuse your loan application if there are terms or conditions that are not met.

In addition, each bank also has special considerations for giving approval to prospective borrowers, for example, based on financial history or the type of work he was doing at that time

After knowing how to borrow money from a bank, consider the following tips for faster approval:

Make sure you don’t have large instalments or other debts

This is one of the biggest stumbling blocks when someone tries to apply for a bank loan. The reason is, that the bank always makes careful calculations about your financial condition to ensure the risk of lending is still within the normal threshold.

Some banks even provide a condition to include documents stating that you are free from borrowing elsewhere. Therefore, make sure you don’t have dependents or credit (especially in large amounts) when applying for a loan.

Keep Your Credit Score

A credit score is a score given based on your past borrowing history. This score is usually also taken from your credit history at the bank concerned.

If you have been a long-term customer of a bank and have completed regular credit payments, it is likely that the loan you are applying for will be approved in a short time.

Find the Right Program for Your Needs

Each bank has a variety of lending programs for its customers. If you were a lender at a bank and had a good credit score, you may be offered a loan directly from the bank even if you didn’t seek it.

Studying the advantages of each loan program is the first thing to do before preparing the requirements needed. The benefits in question can be in the form of reducing or eliminating interest, giving certain gifts, or cashback. or an unconditional increase in loan tenor.


That’s an explanation of how to borrow responsibly and borrow money from a bank along with tips for getting approval faster. From the article above, it can be seen that applying for a loan from a bank actually requires fairly easy requirements. Therefore, do not hesitate to apply for a loan if you really need it.