Comments on: Personal Loans: To take or not to take? http://www.subramoney.com/2011/09/personal-loans-to-take-or-not-to-take/ We Make Smart People Richer Sat, 25 May 2013 08:06:49 +0000 hourly 1 http://wordpress.org/?v=3.5.1 By: shinu http://www.subramoney.com/2011/09/personal-loans-to-take-or-not-to-take/comment-page-1/#comment-82746 shinu Thu, 08 Sep 2011 05:39:29 +0000 http://www.subramoney.com/?p=8077#comment-82746 Subra sir

This is one path which many middle class NRI’s used which indeed helped them in forced saving and creating wealth in long term especially in the 90,s when the rate was very good. Was not my preffered way but prevailing rates did make me too rethink and act. Yes the risks you mentioned are the real ones but ( a 4 percent depreciation of rupee wiped out the expected savings for the year… :( . no regrets though.. )w/o taking some calculated risks what is the fun in playing with investment options.

I wish a bank will approve 1/100th of the amount you mentioned..:)

Regards

]]> By: subra http://www.subramoney.com/2011/09/personal-loans-to-take-or-not-to-take/comment-page-1/#comment-82743 subra Wed, 07 Sep 2011 13:35:42 +0000 http://www.subramoney.com/?p=8077#comment-82743 of course if you get a loan at 5.5% for 10 years, and a bank which will take it as a fixed deposit for 10 years at 8%, you should take a Rs. 100 crore loan and put a Rs. 100 crore FD. Make sure that the bank accepting the deposit is solvent for 10 years.

If there is no foreclosure risk, currency risk, default risk, rating risk – such a deal would be possible. Only thing is such a perfect end to end deal WILL normally not be available.

Once upon a time a foreign bank borrowed from one branch of a psu bank and lent it to another branch of the same bank – sheer information arbitrage. How such a thing happened is a long story…but it did.

Now for you to spot an end to end deal like the one i mentioned is next to impossible, but the alert guy may spot it.

]]> By: shinu http://www.subramoney.com/2011/09/personal-loans-to-take-or-not-to-take/comment-page-1/#comment-82742 shinu Wed, 07 Sep 2011 13:30:38 +0000 http://www.subramoney.com/?p=8077#comment-82742 @ prabe

Nri’s are getting the PL @ 2%-5.5% depending on their contry of residance. In india too the agricultural loans are one of the most misused… what is in the name right?

]]> By: vishal http://www.subramoney.com/2011/09/personal-loans-to-take-or-not-to-take/comment-page-1/#comment-82741 vishal Wed, 07 Sep 2011 12:01:14 +0000 http://www.subramoney.com/?p=8077#comment-82741 People should take loans. If they don’t, how would banks make profit?. My Mutual Fund / SIP (which invests in banking sector) will not be much profitable. :p

]]> By: krish http://www.subramoney.com/2011/09/personal-loans-to-take-or-not-to-take/comment-page-1/#comment-82738 krish Wed, 07 Sep 2011 09:07:48 +0000 http://www.subramoney.com/?p=8077#comment-82738 Let me share my bit of dumb act. When stock market was booming during Y2K time, I had taken PL to invest in Equity.
I don’t have to eloborate the burnt finger story. Worse I have not learnt any lesson with the episode.

There were couple of times I took PL just because it is offered and the use of it was explored later. Bought laptop, repaired house, new furniture and all.

Thanksfully all is history and today my risk appetitie had come down drastically. When I look back, I realise that I was bold to take loan or investing without knowing much details. Straight logic, some may look utter stupid but everything gets balanced. As some one said, rich would always side with brave and bold.

]]> By: pravin http://www.subramoney.com/2011/09/personal-loans-to-take-or-not-to-take/comment-page-1/#comment-82737 pravin Wed, 07 Sep 2011 08:16:42 +0000 http://www.subramoney.com/?p=8077#comment-82737 “If only people realize that borrowing is simply spending tomorrow’s income (which is not fully certain) today, they would avoid most of the borrowings”
but why dont we apply the same standards to the govt?when they tax and distribute money to its vote banks and alleged victims of the market,arent they destroying capital as well?. air india gets bailed out again and again and the middle class is just fine with that?.or somewhere in bengal where “workers” are playing cards because the factory is shut down since 2004 but they still keep encashing their salaries?.it is time to stop the destruction of wealth

]]> By: prabe http://www.subramoney.com/2011/09/personal-loans-to-take-or-not-to-take/comment-page-1/#comment-82736 prabe Wed, 07 Sep 2011 08:11:08 +0000 http://www.subramoney.com/?p=8077#comment-82736 @Shinu

PL @5.5% where do you live?

I would love to take PL if provided @5.5% p.a in current situation.
Where did you get that quote? i believe it might be P/M instead of P/A

]]> By: anush http://www.subramoney.com/2011/09/personal-loans-to-take-or-not-to-take/comment-page-1/#comment-82732 anush Wed, 07 Sep 2011 05:36:12 +0000 http://www.subramoney.com/?p=8077#comment-82732 but a PL is much beter than credit card borrowing. I know of one instance where my colleague borrowed 1 lakh on his credit card and paid it off over 2 years

]]> By: shinu http://www.subramoney.com/2011/09/personal-loans-to-take-or-not-to-take/comment-page-1/#comment-82731 shinu Wed, 07 Sep 2011 05:30:12 +0000 http://www.subramoney.com/?p=8077#comment-82731 Subra Sir

Why not a PL @ 5.5% to invest in 8% FD :)

]]> By: Sreekant http://www.subramoney.com/2011/09/personal-loans-to-take-or-not-to-take/comment-page-1/#comment-82730 Sreekant Wed, 07 Sep 2011 05:28:12 +0000 http://www.subramoney.com/?p=8077#comment-82730 If only people realize that borrowing is simply spending tomorrow’s income (which is not fully certain) today, they would avoid most of the borrowings.

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