Advantage: Competitive Interest Rates

• Individual and commercial bank loans typically offer competitive market interest rates and other reasonable repayment terms when compared with non-traditional lender offers.
  
  

Advantage: Bank Loans Are Always Available

• Bank loans should always be available since institutions must keep their depositors' money "working" and earning more interest than the bank is paying on deposits.
  
  

Advantage: Better Banking Relationship and Terms

• For borrowers who meet lending criteria, bank loans cost less than other financing sources, offer liberal repayment terms and enhance an overall good relationship with one's financial institution.
  
  

Disadvantage: Possible Delay In Getting the Loan

• Depending on a borrower's immediate need for cash, the longer processing time often required by busy bank personnel may result in an unacceptable delay.
  
  

Disadvantage: Not Everyone Qualifies for a Bank Loan

• To get a low-cost bank loan, borrowers should have good to excellent credit scores. Borrowers with challenged credit should investigate other lending sources.