Is taking out a loan now a good idea?
By faisai
@faisai (1138)
Hong Kong
June 7, 2009 6:04am CST
I recently received a letter from a local bank which is offering me a loan at interest rate of 4.6% per annum for a period of 48 months. Do you think taking out is a good idea? I mean I have never heard that a bank is loaning out money at such a low interest rate.
I am not in need of money and therefore taking out the loan doesn't really have a purpose. So, I am thinking whether it is a good idea to take out the loan and maybe to invest on those stable mutual funds where the expected gain is around 5% or up.
4 responses
@eltobh (231)
• Indonesia
12 Jun 09
Hmm..I don't think that take out a loan is a good idea. But sometimes it depends of how much you earn a month (in order to pay the installment), or on what's the need for the loan. If you really have to borrow, say for something urgent, perhaps it's ok to take a loan, as long as you can pay the installment.
@cobrateacher (8432)
• United States
7 Jun 09
This is too volatile a time to take an unnecessary loan, Fasai. Too often, banks change their rules and requirements these days, and a loan isn't what it started out to be. It really is a risky time and most of us shouldn't take chances until things stabilize, at least a bit.
@cybersoft01 (1284)
• India
7 Jun 09
Well, with the kind of offer you have got, I think it is a good idea to take a loan, because this is the lowest interest rate particularly if you can invest the money in some good business venture.
