Taking a non-public mortgage for Buying and selling finances – Common – Buying and selling Q&A by means of Zerodha






The ones are two separate issues.

I’ve heard about that too, a complete rip-off as how can curiosity be demanded at the cash you’re now not in fact getting? The curiosity will probably be levied at the after-interest-cut quantity.

Sure. Two facets of the cash

You simply don’t know how curiosity works. Do you?
Let me take a look at as soon as by means of one excessive instance.
Let’s say you get a mortgage of 1cr at 1 p.c curiosity consistent with annum. However phrases of compensation is that it’s important to pay off 99,99,999 at the very subsequent day and final 1 rupee it’s important to pay after twelve months.
On the finish of the 12 months it’s important to pay 1 rupee again in conjunction with 1 p.c of 1 crore as curiosity. This is 1,00,001. Does it make sense to you?

Thank you for making me perceive
Via your excessive instance, this man will pay 74999 the very subsequent day and 15k+1 at finish of 12 months ?

Whilst writing the publish ,I used to be unsure about some facets.Now ,I gotten some readability.

Let,me reiterate the location I’m having in easy phrases

Overall Mortgage quantity = 75 okay
Overall curiosity Price = 20% consistent with annum
Overall quantity to be paid in 12 months = 90 okay (75 okay mortgage quantity+ 15 okay overall Passion quantity)

I believe ,I’ve to earn 10 % per thirty days of mortgage quantity (75k)
Which is 7.5 okay

I don’t need to know in-depth wisdom about EMI.

I merely want to know ,it’s imaginable to earn most commonly from fairness phase of 10% acquire from the capital (75 okay).

And thank you on your precious comments

Thank you for the rationalization.
Satisfied to understand that you simply aren’t paying 7.5K every month as EMI.

Then again, one deadly flaw on this scheme of yours
is that source of revenue from buying and selling/markets is NOT assured common source of revenue.

There might be days (or weeks, and even months)
when there aren’t any alternatives within the marketplace for the methods that one is acutely aware of.

In such instances,
folks anticipating common source of revenue regularly end-up taking riskier/nonsense trades
and dropping maximum / all in their capital.

Confidently, you’ll be able to be informed this from watching others
and keep away from dropping your financial savings/loans available in the market to be told this.

Call to mind it this manner.

If there was once a chance to earn 10% per thirty days (i.e. >100% in a 12 months)
why would any individual mortgage you any cash at 20% consistent with annum ever!
They’d merely double there cash available in the market themselves!

A big explanation why any person is prepared to lend you cash at 20% consistent with annum curiosity,
is as a result of they consider 20% consistent with annum returns are much less riskier than “making an investment/buying and selling available in the market”.

Additionally, whoever was once making plans to lend you the mortgage
in the event that they have been to find out about this hare-brained scheme of looking to earn 10% per thirty days, every month,
i consider they might NOT lend you the quantity,
because it it virtually certainly going to be misplaced available in the market in 1-Twelve months.
(until you’ve got every other asset to again the mortgage,
which they are going to fortuitously declare whilst you inevitably default at the mortgage after dropping 75K available in the market)

1 Like

:100: this :point_up_2:

The next dialogue about whether or not the mortgage is in fact 20% or 41% (relying on how it’s structured) doesn’t truly impact the solution to the unique query…

Be successful?
IMHO, not going for the efficiency described within the authentic publish of this subject thread.

No longer certain what’s it you need to focus on with this line of reasoning.
Certain, 3% per thirty days (>36% consistent with annum) is bigger than 20% consistent with annum.

However, there is not any ensure of a three% source of revenue for all the period of the 12 months.
AFAIK, OP doesn’t have some “certain factor” arbitrage industry
this is going to web them 3% per thirty days, each and every month, for the following Twelve months.

Is that even a practical possible expectation?
@VarunG Out of your previous remark, i consider you settle that its is NOT a practical expectation.

Undoubtedly now not for OP,
who has additionally proven to have inadequate risk-management of their buying and selling file to this point.


It was once in regards to the 15k curiosity he needed to pay for Twelve months. So he’s successfully giving out 1.25% of curiosity

Ans you already know what , I now know the place the dialogue went south.
There was once some other thread about borrowing 10 lakh from some other particular person. I used to be studying and commenting on those two threads concurrently.On this thread , OP by no means stated borrowing from ‘the place’ !!
I at a loss for words and assumed it’s from a person. While OP most effective mentioned a ’ private mortgage’ . Banks and NBFC’s loans paintings on the way you guys identified. I used to be caught with the flat price that exact cash lenders perform.

In any case OP will have to have were given greater than what he had requested for .
Cheers bros

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