Asked by Anonymous
Asked on 07 Jan 2019
I won't recommend taking up a loan to invest via P2P as there is possible default risk...
P2P is a high risk investment which you should expect 10-20% default rate (to be conservative).
Unless you are already generating consistent profits for quite some years using the same method (which I don't you do), it is always not advisable to fund your investment with loans.
Lastly, 4-6% additional profit doesn't justify the risk involved for such investment.
If you are absolutely sure that your investment can give you that 9-12%, then sure, why not?
However, like what you said, there are risks involved. Thus, it is never a good idea to take up a loan for investment purposes. You always need to think of the worst case scenario: the company going bankrupt. What do you do then?