You have to pay loans back. Do you think lenders are in the business of handing out free money? They lend because they get a return–if they didn’t, there would be literally zero motivation to lend.
Obviously they pay it back, but the assets used as collateral usually grow faster than the interests they have to pay back. Which is pretty much free money.
You have to pay loans back. Do you think lenders are in the business of handing out free money? They lend because they get a return–if they didn’t, there would be literally zero motivation to lend.
Obviously they pay it back, but the assets used as collateral usually grow faster than the interests they have to pay back. Which is pretty much free money.