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What types of loans can be used for investing?

Several types of loans can be used for investing, including personal loans, home equity loans or home equity lines of credit (HELOCs), margin loans from brokers, and investment property loans. Each loan type comes with its unique features, interest rates, and eligibility criteria.

Can you invest in a personal loan?

You can get a personal loan for anywhere between $1,000 and $100,000 or more, and often with terms between 12 to 60 months. A major appeal of personal loans is that they can be used for almost any purpose — even potentially investing. However, some lenders expressly prohibit borrowers from using funds to invest.

What is a good investment if you have a personal loan?

Your investment has a fixed return: The most reliable investments are those that offer a fixed rate of return, such as I-bonds and certificates of deposit (CDs). If the interest rate on your fixed investment is higher than the APR on the personal loan, you could make money by using a loan to invest.

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