According to Chron, the major advantages of a bank loan are stability and autonomy if the borrower is a small business. This source explains that banks lend money without taking ownership in the enterprise for which the loan is being used, so the borrower retains total autonomy as long as the money is paid back in time.
Chron explains that another major benefit of bank loans is that the lender can completely sever ties with the bank once the loan is repaid in full, while other types of lenders may require a continued relationship.
Opposing Views notes that bank loans are offered for a variety of purposes, from taking a vacation to paying for a child’s college tuition. Bank loans are generally far more secure than payday loans, offering low and consistent interest rates to borrowers with good credit and a reliable payment history.
Opposing Views also explains that bank loans are far more flexible when it comes to money distribution, since banks don’t typically impose regulations on how the loan is used once the borrower has been approved for a given amount of money. As long as the bank receives payment, the borrower can use his own discretion as to how to spend the loan.