Asked by Anonymous

Should i take up a personal loan to invest more?

  1. I have a year of annual income saved in my bank that is accruing interest. 2. I have a set amount of additional income + variables that will be coming in for at least another 12 months. 3. I draw a full time pay on top of no.2 What I intend to do is to get a loan of about 5-6% int p.a and return them in 12 mth, while I invest the full amt into a diversified investment (part stock part p2pL) which gives me 9-12% p.a. (with risk involve) What would the pros and con be? Thanks so much guys!
0
0
Share this
Answer this question
Add
Add
Select
Clear
Add
Write your answer

Answers (3)

Sort by:
Most Upvote
  • Most Recent
  • Most Upvote
  • Ck Chai
    Ck Chai
    84 Answers, 125 Upvotes
    Answered on 09 Jan 2019

    I won't recommend taking up a loan to invest via P2P as there is possible default risk...

    Comments (0)
    2
    0
    Share this
  • Lee Chun Kiat
    Lee Chun Kiat
    15 Answers, 18 Upvotes
    Answered on 08 Jan 2019

    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.

    Comments (0)
    1
    0
    Share this
  • Yong Kah Hwee
    Yong Kah Hwee
    Top Contributor

    Top Contributor (Feb)

    531 Answers, 720 Upvotes
    Answered on 07 Jan 2019

    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?

    Comments (0)
    1
    0
    Share this