Loans typically have a negative connotation. Most people think of borrowing as a last resort, something to be avoided at all costs. But what if a loan could be more than just a way of funding an unexpected expense? What if it could be a way of enabling you to build a better tomorrow? Borrowing doesn’t have to be just about filling gaps, it can be about opening doors.

Responsible lending is a matter of utilising credit to improve your life. Instead of borrowing just to get by, you’re borrowing to get ahead. A loan, if you put it to good use, can help you make real strides towards your goals. It may be the vehicle through which you further your education, allowing you to acquire new skills and increase your earning potential. It may be the financial boost required to enlarge a small enterprise, giving business owners the funds to invest in equipment, restock supplies, or expand operations. It may help a family meet the cost of vital home improvements that add value to their home, or assist with covering a child’s university fees to secure a brighter future for them.

For many, financial challenges stand in the way of progress. A young professional may need additional qualifications to progress in his or her career, but lacks immediate funds for school fees. 

A small entrepreneur may have a great concept, but lack finance to take the enterprise to the next level. A family may get a surprise medical bill needing urgent settlement. 

These periods can be intimidating, but with the right financial support, they don’t have to hold you back.

Of course, borrowing should always be approached with care. 

It’s important to understand loan terms, choose an amount that fits within your budget, and ensure that repayments are manageable. A loan should never add unnecessary financial stress. It should work for you, not against you. 

When used correctly, it’s more than just money in your account; it’s an investment in your future.

The reality is that financial needs will always be there. Yet, borrowing does not have to be a negative. When properly done, it can be a valuable means to move you forward, achieve your goals, and take charge of your financial future. 

A carefully thought-out loan can turn into the bridge that moves you from where you are to where you need to be. Borrowing with purpose is less about borrowing money as it is about unlocking new doors and new possibilities, and shaping a more confident tomorrow.

*Natasha Winkler is the managing director of Old Mutual Finance at Old Mutual Namibia.