Introduction
In this background report I will try to find and search
about money lending and the meaning of it which most of the people are in debt
with the bank, and why they are in debt. As I will also try to look for the
main problems that could get the money lender in a big risk for themselves and
for their family. And I will try find the purpose of people who lend money. In
the end, I will look for the best way to solve, avoid and keep people from
borrowing money from banks because of the high rates.
I think this topic is very important for all the people
around the world and I made it especially for UAE people because of the high
percentage of people who borrow money for many things. As those lenders could
make the bank broke if anything bad happens to the economy.
This report will conclude a proposal for research within the
Higher Colleges of Technology
Background report:-
1)
Risk of Money Lending
One of the most common things between people is money
lending. Borrowing money from the bank or people for many purposes such as
education, marriage, car, house, travel and all kinds of things that a person
needs or wants. However, these banks loan you money with high rates which could
be more than 5% of the money borrowed and it is a big problem for most of the
people. The money of the high rates could make you in risk years after when you
can’t repay them or even if something happened with the economics it would make
you in big trouble within your life which could make you end up in jail. No one
knows what would happen today or tomorrow or a year after. Stocks go up and
down as does life. So when you borrow
money from your family or friends, where you don’t know when you will repay
them and they don’t know when you will pay back the money. That would cause a lot
of problems and fights, which could just end your relations with them.
2)
People’s lives
There’s a high percentage of people in the UAE who borrow
money for their lifestyle such as buying new car, travelling and buying
expensive things that are not necessary any person’s life. So people are just
trying to show themselves as they are in high positions while most of them are
in debt with the banks or people. They don’t think about their future, they
just want to live the moment once. They could have taken the money and built
their future by building house or marrying and doing useful things. At last
these people need lectures to guide them to the right use for borrowing money
and stop wasting it for nothing.
3)
Investment lending
So many people borrow money for their lifestyle and many
others who just need the money to live. But there are few people who borrow the
money to invest it and start doing business. However, this way of borrowing
money is the best way but you only need to guarantee that your business won’t
let you down which could get you in higher risk more than the others. So people
who want to invest need to calculate every single thing before they do any of
the investments and never try to risk, because you only have one chance, either
you go up with your cash or down into nothing.
Proposal for research
This topic of money lending is
very important for all the people in the United Arab Emirates because of how
risky it is. So as how it could affect the economy and people’s lives during
the future. As I am a local Emirati and a student of Higher College of
Technology, I want to figure out if these people are motived to change their
path to the right use of money. As I wish to stop the people who borrow the
money for life styling and start to think right and have a better life for the
sake of their future.
I think that my research would be
so helpful at the college, it will change many minds and it will answer the
questions.
Phase 3 :-
To achieve this purpose I will make a questionnaire
for students who attend Abu Dhabi Men’s College. The questions I will ask will
be about..
1-
What is the first thing you
would do when you receive money from bank as a loan?
2-
Why do you borrow money?
3-
How do you feel when you
are in debt?
4-
What would you do when you
can’t pay back the bank or visa?
5-
Do you highly recommend to
borrow money from the bank? Why?
6-
Do you agree that borrowing
money could put you in bad situations and risk?
References
P. K. (2013, April 7). Expat in
Dubai jailed after borrowing Dh50,000 from a 'friend' | The National. Retrieved
January 30, 2016, from http://www.thenational.ae/uae/expat-in-dubai-jailed-after-borrowing-dh50-000-from-a-friend
C. S. (n.d.). 10 Reasons Why You
Should NOT Lend Money to Friends & Family. Retrieved January 30, 2016, from
http://www.moneycrashers.com/why-you-should-not-lend-money-to-friends-and-family/
R. R. (2014, February 8). Legal
experts warn Filipinos against loan sharks | The National. Retrieved January
30, 2016, from http://www.thenational.ae/uae/legal-experts-warn-filipinos-against-loan-sharks
C. S. (2016, January 31). How
Interest Rates Affect The U.S. Markets | Investopedia. Retrieved February 03,
2016, from http://www.investopedia.com/articles/stocks/09/how-interest-rates-affect-markets.asp
Martins, A. T. (n.d.). Starting a
Business in Dubai – 10 Booming Opportunities. Retrieved February 03, 2016, from
http://www.mytopbusinessideas.com/dubai/
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