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I borrow against my measly investment portfolio through my local banks "Loan against Securities" account. Interest rate is about 10%. My father was using this
by kumarvvr 2y ago
I borrow against my measly investment portfolio through my local banks "Loan against Securities" account. Interest rate is about 10%.
My father was using this feature for past 15 or so years from same bank. We are solidly middle class in India.
The only difference between what we do and what rich folk get is probably lower interest rates and higher percentage of loans against the securities value.
- UltraSane 2y ago10% seem very high for a that kind of loan.
- creer 2y agoJust about right for a different country than the US. Mortgage rates in India 8.3-9.5% right now, inflation 5-6%, benchmark rate 6.5% - and this may or may not be tax deductible in India, perhaps depending on the usage. And 25-44% yoy stock market gains. It's about the same as a 15-year fixed rate mortgage - same as in the US.
- jjeaff 2y agoInteractive Brokers gives you around 5% right now.
- deleted 2y ago[deleted]
- creer 2y agoHow is this used by the middle class in India? To fund day to day living expenses? to buy or build a house? for further investment? Do people tend to repay the debt now and then, or make it flow into their estate? how does succession / estate law treat that? Is this seen as prudent management? etc... I know these ways of thinking are very different between the US and western Europe (where for example a home mortgage is very cheap, and considered normal and indispensable investing, and stock investing can be crazy conservative - all the way to considered reckless, and estate law and tax is downright brutal). I wonder about India.