Should I borrow at 6% interest from the bank for an investment I will make 10%? Will it be sustainable?

Let’s say the interest on my loan is 6% and I will be making 10% from the investment, will I be correct to go ahead and borrow as I will earn enough to pay for interest?

Search other products or providers:

  • user image

    No Name

    Yes and No. Yes, but be sure that you are able to service your loan monthly and consider your other payments and plans that may affect you. No there is no guarantee you can get 10% back annually. But the 6% loan annual interest is guaranteed. My personal opinion is invest only what you can afford to lose. Can you afford to pay the bank back should you lose this amount in your investment?

    2019.08.01 18:0

    Please leave your knowledge and opinion!

    Related Forums

    What are the characteristics of a bond?

    How should I invest on my medical supplements using a credit card?

    What are thee companies that offer monthly investment plans and who are the individuals who should get these plans?

    I'm investing on a farm abroad by using my credit card.I got scammed

    WHat is the best way to invest my money on?

    Why did the MOM decide to change the money lending laws for foreigners?

    Related Reviews

    Fee waivers and No transfe fees

    American Express Singapore Airlines Solitaire PPS Credit Card / American Express International

    The AMEX Express Singapore Airlines Solitaire PPS Credit Card gives a First Year Fee Waiver for you to enjoy and also for your supplementary card members. In addition there are no transfer fees and all the KrisFlyer miles you can earn are directly transferred automatically to your KrisFlyer account with no transfer fee. I would recommend this card for these few reasons which could really make the difference.

    I can enjoy Interest rates starting from 5.80% p.a.

    NTUC Plus! Visa Credit Card / Oversea-Chinese Banking Corporation

    I love that I can enjoy Interest rates starting from 5.80% p.a. (EIR 11.38% p.a.) on their 12-month instalment plan which allows for fixed monthly repayments.The monthly repayment for your Cash-on-Instalments is fixed, allowing you to manage your finances with ease of mind. That works perfect for me as it helps me to be more organized and I give them thumbs up.

    Ease of use to accumulate on miles

    American Express Singapore Airlines KrisFlyer Credit Card / American Express International

    The American Express Krisflyer Credit Card has an attractive sign up bonus and it is easy to use to accumulate on miles as no conversion into KF account is required, and monthly auto “sweeping” of miles help save in the conversion fee. I also have had good experiences with their customer care service as the call center service is absolutely awesome.

    When I apply via MyInfoget I get to use my card instantly

    OCBC Robinsons Group Credit Card / Oversea-Chinese Banking Corporation

    So it is really convenient that I can get and use my card instantly when I apply via MyInfo. And the cards instant digital card that can be used for mobile wallets, online and mobile app purchases. Now aside from the same day physical credit card issuance for online applications you also get S$50 cash rebate upon approval with no minimum spend required. However that is only for new OCBC Credit Card applications.

    40,000 Membership Rewards points to refer a friends to the card

    American Express Platinum Card / American Express International

    I like the idea that I can receive 40,000 Membership Rewards points when I get to successfully refer any of my friends to the card. Even more so as my friends can also receive 40,000 Membership Rewards points upon spend of S$5,000 in the first 3 months of their Card Membership. I think that is pretty much a win-win situation.

    OCBC Frank Card offers young adults a great, no-fee way to earn cashback from social and online spend

    FRANK Credit Card / Oversea-Chinese Banking Corporation

    OCBC Frank Card stands out for its low minimum spend requirement and annual fee waiver however, it’s not a great match for consumers seeking everyday cashback. Online spend on utilities, recurring bills, and school and hospital payments are all not eligible for rebate. Dining, groceries, and other categories are also not rewarded. Ultimately, OCBC Frank Card offers young adults a great, no-fee way to earn cashback from social and online spend. OCBC Frank Card is definitely worth consideration.