In my home country, a lot of people get a bank loan so that they can start investing in the stock market or even the real estate market. This practice was rampant during the corona pandemic. A lot of people I knew managed to make a lot of profits through this method. However, I do not think this is a sustainable method. What's your video on getting a loan for investment purposes?
Getting a Loan for Investment
- Thread starter nomad
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There are many businesses that get loans. However, banks now do not offer loans that easily. This is because they realise the fact that offering loans is pretty risky and they demand a high mortgage for that loan.
That's where the risk factor comes in. Investments is all about taking care risks and if you are not a good risk taker, you would not gain much from investment.
Exactly, like each and everyone of us have a limit when it comes to taking risk. The amount of risk i might be able to take would definitely not be the same as the amount the next person might take. Before going into any investment, know your limits.
No, I would not borrow money to make investments. This is too risky. I am a conservative investor. I just invest what I can afford. I know there are people who borrow money to buy stocks and they are making good profits. But I am not prepared to take such risk.
Provided that a person has carried out thorough analysis to establish the profitability of a particular business venture, it is viable to secure a loan to launch a business. I am thinking of hidden costs that may not be visible to a casual observer.
Without this methodical scrutiny, an individual is bound to suffer a significant financial loss.
Without this methodical scrutiny, an individual is bound to suffer a significant financial loss.
Personally speaking, I can't take loans for investment purpose because I don't really know the outcome of the investment process in other not to incure loss on my end., I can take from relatives or family members but not banks
My parents also often make bank loans to increase working capital, but not as initial capital. If the business is running, it will be easier to make predictions, to expand the market, or buy new machines, but in my opinion, borrowing money to invest in stocks would be very risky. because stocks fluctuate, unless you are a stock expert, to buy IPOs and only short term.
Exactly, these decisions to ask for a loan to invest always occur in bull markets when the market does not stop rising and people enter FOMO, but that is when the tables are usually changed and everything can end very badly.
If the loan is intended for going or investing it into a business, then it's a very welcome idea, because definitely so far it's a business venture, there would always be profit in it, them you can clear the debt with the proceeds of the business, little by little until you finish it, or you request for a payment plan.
I think it is not very reasonable to take a loan because you want to invest. It is better for you to wait till you have your money so that you can invest with peace of mind instead of taking a loan for investment
Provided that a person has carried out thorough investigations and confirmed that a business idea is viable, he/she can obtain a loan to make an investment. A possible avenue to conducting such investigations is to perform a pilot program.
"No pain, no gain" is a very popular saying. The fact of the matter remains that if you invest money, then you will lose money as well. However, successful investor end up making money and this is why they are successful in the first place.
Receiving loans may not be that easy, especially when you do not have a great business idea or assets that you could offer as mortgage. The fact of the matter remains that in many cases, you have to apply for a loan and fill lengthy forms.
