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09 Feb 2021

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What methods are possible to take a loan with low interest rates in Singapore and invest the money in the stock market?

Hello everyone,

I want to know what methods are possible to take a loan with low interest rates in Singapore and invest the money in the stock market. Currently, I have no debt and already invested in stocks. I want to do this to slightly fast-track my investment plan without too much risk.

Credit cards are too costly given avg APR ~25% so thats out of the scope.

Thank you.

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Elijah Lee

09 Feb 2021

Senior Financial Services Manager at Phillip Securities (Jurong East)

Hi first last,

You may consider margin accounts where you can use your existing stocks as collateral in order to get a loan to invest.

The amount that is granted depends on the stocks that you pledge. Interest rates are typically low-mid single digit and hence lower than that of credit cards.

Margin is a double edged sword, but I think you know that already. Tread carefully.

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