Taking a loan

R

rameshk74

New Member
#1
#1
Dear All,

This may seem little out of topic. But since I needed help on this matter urgently, I am forced to post it here because I believe you guys can certainly advice me.

I have good investments in stocks. But since it is a bearish time I don't want to do any selling now. I will end up in lose if I sell them. To meet some of my immediate expenses, I have two choices. Go for a personal loan or use credit card (Pay the minimum amount the rest in convenient installments). The banks charge an interest rate somewhere between 15-20% for personal loans. But my credit card company has offered a special limited period interest rate 0.99% per month which seems interesting and better than personal loan. Will it be a wise idea to go for this credit card loan and pay only the minimum payable amount and rest in subsequent months using this interest rate. Do you guys think there is any risk or pitfalls in this scheme?

Best Regards
Ramesh Krishnamoorthy
 
A

Asia Etrader

Member
#2
#2
Borrowing is ok but not if you buy stocks on Margin. If you buy the stocks on margin with loan money and the stock keeps going down you will blow your account, the borrowed money and will be left with a large debt to pay off and own nothing. Its a risky proposition but can be rewarding or painful.
 
R

rajaram.dilipkumar

Well-Known Member
#3
#3
rameshk74 said:
Dear All,

This may seem little out of topic. But since I needed help on this matter urgently, I am forced to post it here because I believe you guys can certainly advice me.

I have good investments in stocks. But since it is a bearish time I don't want to do any selling now. I will end up in lose if I sell them. To meet some of my immediate expenses, I have two choices. Go for a personal loan or use credit card (Pay the minimum amount the rest in convenient installments). The banks charge an interest rate somewhere between 15-20% for personal loans. But my credit card company has offered a special limited period interest rate 0.99% per month which seems interesting and better than personal loan. Will it be a wise idea to go for this credit card loan and pay only the minimum payable amount and rest in subsequent months using this interest rate. Do you guys think there is any risk or pitfalls in this scheme?

Best Regards
Ramesh Krishnamoorthy
Click to expand...

Loan Against Shares 13% interest in HDFC and processing fee(PF) is 1.5% when i took 2 months ago.

If you take a loan on your credit card.kindly pay the full amount else the balance will be chaged at 2.65-3.15%(varies from card to card) monthly.Also take in to account the PF charged by the credit card companies attimes its as high as 3% and this will make up for the money they lose on the reduced interest they charge while giving offers.
 
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