Bank loan to fund an investment

Are banks open to lending money, for investments and what sort of stipulations do the place.

I’ve never borrowed money in my life, so this is a new topic for me.

Do you need to explain exactly what the investment is ?

Which bank would you recommend that have good rates.

Not sure what type of request you plan to address the bank. They’ll gladly finance the aquisition of a business or a self-employed venture provided their assessment of the venture is that it is profitable. They’ll finance a car and provide a mortgage, for own use or rental property, provided their criteria are met. They’ll probably be reluctant to finance stock purchases unless they’re done through a lombard loan. No idea how they’d address your specific request.

I haven’t gone through a bank for it but private loans are mainly “no question asked” provided you fulfill the affordability criteria. In any case, unless there’s a collateral involved, the amortization rules of the loan would probably make it a very high threshold to meet before it actually becomes beneficial.

I wanted to take out a private loan for stocks investments. It took a 10 year amortization period and 14% planned returns on investment per year to make it work. I’ve deemed the risk way too high to push the endeavour any further. The 3-7% interest rate barely mattered in the global calculation (amortization is what killed it for me).

I was thinking of investing in precious metals, any further thoughts on what their response may be and whom I could approach ?

If you invest in metals ETF you would have the possibility to use a margin/lombard loan from your broker for maybe 65% of the total investment.

If you invest in physical metal you need a private credit line. There are many options, I believe MigrosBank online was always one of the cheaper ones at around 6% interest. No need to be specific with what you need the money for.

But do check your calculations, that will very likely be a bad idea given the required return.

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