8 Replies to “Which is more risky,taking a bank loan of 5 lacs at 16%PA and renting a shop at 8000 per month,or investing?”





  1. The first one is more risky. Any money earned would have to be put in your business, initially. You would find it very hard to repay the loan in the early periods.

    I would give you an idea. Take a higher loan (say 8 lakhs). Invest 4 lakhs in mutual funds. Utilise the balance in renting a shop.

    At an average, mutual funds yield 2% interest per month (that is 24% p.a.) So your mutual fund income would be doing the part repayment of your loan. You can concentrate on your business. (However, there is a risk here also.)

    But try to reduce the investment on your shop. Don’t invest the entire amount at one go. You may need to do modifications or alterations later.


  2. Depends on what the shop is? I am not sure what lacs means? But if you have several thousand dollars to invest then finding a company that invest in large hotels resorts that are established already is a great idea. Your money is pretty save. You are investing with a group of investors who are usually more experienced then you are. You get a quarterly return. It’s worth checking into. Here is one place you can check out. http://www.1031nnn.com/
    & http://www.blackstone.com/real_estate/investment.html

    Always get professional advice 🙂


  3. if you r taken loan & repay loan – if interest rate will simple interest total interest you ‘ll pay -Rs. 80,000/- but they will charge COMPOUND INTEREST WHICH WILL BE ALMOST 18% means LOAN COMPANY WILL CHARGE 90,000/- + PART OF PRINCIPAL ALSO THAT MAY BE ALMOST 1,00,000/-. and you will receive 96,000/- in hand. FIRST YOU TEL HOW CAN YOU ARRANGE REMAINING 4000/-.

    THIS IDEA WILL BE TOTAL FLOP IDEA.

    Better YOU TAKE A LOAN OF 1,00.000/- ONLY & INVEST IN SHARES IF YOU INVEST WITH THOROUGH STUDY YOU’LL GET ATLEAST 10,000/- PER MONTH MEANS 1,20,000/- PER YEAR & YOUR LOAN REPAYMENT FOR YEAR WILL BE Rs.20,000/- only. means you’ll get Rs. 1,00,000/- profit in a year.

    for share investment i’ll suggest u that you also tread if u buy a share in morning and if it will rise 4-5% then u book profit immidiately. or invest in shares book profit in a week or fortnight.
    today u can invest in N.K. INDISTRIES/SIMBHAOLI SUGAR

    & TREAD ANY VOLATILE STOCKS.
    FOR DETAIL U CAN COTACT ME @
    [email protected]


  4. To take loan and invest in stock market(either share or mutual fund) is 100% risky….(ofcourse you CAN get much more return but there is no 100% GURANTEE of CERTAIN AMOUNT)
    You can earn may be 500 % or 5%…so investing in stock is always risky..
    By taking loan as you indicated….payng regular interest…by long contract for renting shop(which increase 10 % or 20 % after 2 year so the rent will be Rs 8800/- per month if 10 % increase in rent after 2 year…and interest rate positivly same…
    You paying interest every month=Rs 6666/-
    and you renting shop at Rs 8000/- per month…
    You can earn atleast Rs 1333/- GURANTEED….
    THERE IS NO GURANTEE IN SHARE MARKET…
    DON’T TAKE RISK…





Leave a Reply

Your email address will not be published. Required fields are marked *