# Personal loan for investment?



## foxxo (18 September 2010)

Has anyone had any experience in getting a personal loan for investment?  

I've spoken to my bank and they will only approve a margin loan, which I already have.  There are too many restrictions on margin lending (preferred shares, leverage limit/margin calls, no shorting etc).  I already have a portfolio of shares but I'd like to borrow for some short term trades.  

I dont understand why they will lend 40k for a wedding, holiday, car, boat or other massively depreciating asset, but wont lend for investment.  If I have the ability to repay the debt, what does it matter for the purpose of the loan?


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## So_Cynical (18 September 2010)

*Re: Personal Loan for investment*

I had a smallish interest only, investment loan thru MEbank about 4 years ago...the application process was all online so a bit of mucking about to do with paperwork etc but overall a pleasant and easyish experience.

http://www.membersequity.com.au/personal/home_loans/investment_loan.html

When i got this loan i had no other substantial debt and owned a little old house in the countryside that was rented...this house was used as security.


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## nioka (18 September 2010)

*Re: Personal Loan for investment*



foxxo said:


> Has anyone had any experience in getting a personal loan for investment?
> 
> I've spoken to my bank and they will only approve a margin loan, which I already have.  There are too many restrictions on margin lending (preferred shares, leverage limit/margin calls, no shorting etc).  I already have a portfolio of shares but I'd like to borrow for some short term trades.
> 
> I dont understand why they will lend 40k for a wedding, holiday, car, boat or other massively depreciating asset, but wont lend for investment.  If I have the ability to repay the debt, what does it matter for the purpose of the loan?




Easy,tell them you need a car to go on a holiday as you are getting married.  However think twice about borrowing to invest, especially at the interest rates that probably apply to personal loans.


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## Mofra (20 September 2010)

foxxo said:


> I dont understand why they will lend 40k for a wedding, holiday, car, boat or other massively depreciating asset, but wont lend for investment.  If I have the ability to repay the debt, what does it matter for the purpose of the loan?



I have done it twice - once via one of the majors, the second time via a NBL. Never had an issue, and I was upfront with what I was using the loan for. 
Probably worth shopping around a little more.


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## nukz (20 September 2010)

*Re: Personal Loan for investment*



nioka said:


> Easy,tell them you need a car to go on a holiday as you are getting married.  However think twice about borrowing to invest, especially at the interest rates that probably apply to personal loans.




Thats a good point on intrest rates, if your paying 12% intrest on a personal loan you need to be making atleast that return on your investments. 

I'm supprised you can't get a personal loan anywhere basiclly as long as you provide them some sort of security like property.

Macquarie offer a investment loan where you can borrow 100% which has no margin calls ect. If this is something your after could start with some information from them. I'm sure there are others out there who provide this product

http://www.macquarie.com.au/mgl/au/personal/loans/investment-loans/100-percent


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## skyQuake (20 September 2010)

foxxo said:


> I dont understand why they will lend 40k for a *wedding*, holiday, car, boat or other *massively depreciating asset*, but wont lend for investment.  If I have the ability to repay the debt, what does it matter for the purpose of the loan?




I see what you did there.

--------------------------

Imo margin loans would be cheaper ~ 7-8% rates and you can pre-pay the interest expense for tax if you need to.


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## poverty (20 September 2010)

Flip credit card balance transfers around for a very low interest rate and low repayment loan


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## white_goodman (20 September 2010)

skyQuake said:


> I see what you did there.
> 
> --------------------------
> 
> Imo margin loans would be cheaper ~ 7-8% rates and you can pre-pay the interest expense for tax if you need to.




cop that biatches


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## Junior (20 September 2010)

foxxo said:


> Has anyone had any experience in getting a personal loan for investment?
> 
> I've spoken to my bank and they will only approve a margin loan, which I already have.  There are too many restrictions on margin lending (preferred shares, leverage limit/margin calls, no shorting etc).  I already have a portfolio of shares but I'd like to borrow for some short term trades.
> 
> I dont understand why they will lend 40k for a wedding, holiday, car, boat or other massively depreciating asset, but wont lend for investment.  If I have the ability to repay the debt, what does it matter for the purpose of the loan?




If you're talking about an unsecured personal loan, you're better off just taking a cash advance from your margin loan and using those funds for trading.  Interest rate will be much lower than an unsecured personal loan.


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## Tysonboss1 (20 September 2010)

Have you done much thinking about why you are in the situation that you need a personal loan in the first place?

Have you proved trustworthy as a manager of money in the past?

If you are trying to get a personal loan because you want to invest, but you have no money to invest the first problem you need to fix is your current money management.

Why is it that you don't have saving which you can invest?


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## laurie (20 September 2010)

foxxo said:


> Has anyone had any experience in getting a personal loan for investment?
> 
> I've spoken to my bank and they will only approve a margin loan, which I already have.  There are too many restrictions on margin lending (preferred shares, leverage limit/margin calls, no shorting etc).  I already have a portfolio of shares but I'd like to borrow for some short term trades.
> 
> I dont understand why they will lend 40k for a wedding, holiday, car, boat or other massively depreciating asset, but wont lend for investment.  If I have the ability to repay the debt, what does it matter for the purpose of the loan?




Because you may not have assets to cover the loan I for one have a margin loan and think its the best form of investment lending available not only is the interest tax deductible to get more money I just have to print out an application form [ 1 page ] and its approved the next day if I tried to borrow the same amount via my local branch I would have to give my wife & children away as security answer stupid questions,sign 50 odd pages of conditions and even then he may say "hmm" 

laurie


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