There are two types of people. One type would like to avoid loans and buy everything with only the money they own and the other type is the set of people who go for a loan to buy most of their assets. One of the biggest questions that can come to our mind is which one is the best approach. The perspective can differ from one person to another and there are both advantages as well as disadvantages in both the approach. In this article, let's discuss about how loan helps in the efficient use of time. 

When we go for a loan, we usually take a loan which is get the money that we don't currently have in mind and purchase a property. But after the property is bought, it becomes completely ours only after we complete our loans. Until then the property is going to be under loan. We are still free to use the property however we would like to use it. One of the biggest advantages here is that we are ahead of time. If someone wants to get a property only with the money they hold, they might have to wait for several years and wait to get the money and purchase the property. 

![](https://images.ecency.com/DQmaLhtmwtRaUSttdvpdB5JoypKNirVBeo8gEupNAcuJapQ/image.png)

[Source](https://pixabay.com/photos/money-finance-house-mortgage-1017463/)

There is no guarantee that the value of the property can be the same after several years. But if we go ahead in time and purchase the property right now with a loan, we are going to be paying more for the property because of the interest rates but overall we will have both the property and also a good asset that can have a better resale value over the course of years. For some people saving up money is a never-ending process and it keeps giving them challenges. They would save money for something and suddenly another commitment would pop up and finally they might end up not saving enough money at all. 

If we take this situation, their intention to buy a property with their self-owned money will always be there but there won't be a commitment or enough savings to do so. Let's say they get some value after a few years, it can be a case where the property may not be affordable after a few years or it can get costly based on the market price. This is where taking a loan right now becomes a good shortcut where we can make use of the time efficiently and own the property and slowly clear the loan with the commitment of EMI that we have already taken up. 

![](https://images.ecency.com/DQmTLLeNBwiFg5Nxap9kojBkSBnFiK6cNmSc2URjRR53jFe/image.png)

[Source](https://pixabay.com/photos/mortgage-house-contract-sign-home-5266520/)

If we take a loan we are going to keep paying a lot of money as interest to the bank but some people try to close it sooner to reduce the interest they would be paying. In some cases, the interest can be two times making the loan value double the value of the property. This is a good risk that someone can take because at the end of the day, if they are unable to pay the loan amount or EMI in a worst-case scenario, they can sell the property and be happy with whatever they receive from the property. In another case where they pay extra every month apart from the regular EMI amount, they should be able to close the loan sooner and become debt free. 

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