The stock market is a hot investment bed with opportunities for great financial growth. If the thought of making stock investments has crossed your mind, then there is no better time than now. Subject to conditions, the returns can be extremely lucrative. However, you may be pulled back by the thought of generating funds for your investment. Not anymore! Fortunately, you can now opt for a Muthoot personal loan to support your idea.
Personal loans let you access a substantial amount that is essentially required to drive large enough profit through the stock market. This is why personal loans are popular among stock market investors. Let’s evaluate whether the idea of getting a Muthoot Finance Personal Loan to support your stock market investment is practical or not.
A personal loan carries the following benefits when used to trade in stocks. These pros include:
Notable Tax Benefits – The most notable benefit of using a personal loan to trade in stocks is the benefit of enjoying tax concessions. As part of Section 80C of the Income Tax Act, you can claim tax deductions on the outgo of your interest payments. This way you not only make profits from your investment but also save through tax deductions.
Fulfil EMIs through Profits – When you get a loan, you have to service it within the given tenure. It is repaid through monthly EMIs that include interest costs. The best part is that you can fulfil these costs through the potential profits that you can make by investing in the stock market. Depending on the returns you receive, you can quickly close the loan and enjoy the additional gains. However, you should know that the stock market is volatile and comes with risks. Make calculated decisions before you put your money to make the best of your investments.
More Investment Corpus – There are times when you are deterred from making investments because of the unavailable corpus. When you get a loan, you have a larger scope for investment. You do not have to dip into your savings to gain returns. You can continue to maintain your emergency fund while enjoying the best of both worlds.
As with any product that carries innumerable benefits, getting a personal loan to serve an investment also carries certain cons. When you take a loan to fuel your investments in the stock market, you also face inherent risk. The debt can mount if you fail to make the right investment choices. Negative returns or a fall in the stocks can lead to issues with repaying the loan. Thus, you must be sure to make informed choices when planning to use a Muthoot Finance Personal Loan to make stock market investments.
It is extremely important to conduct detailed market research before you make an investment. Leverage the advantage of getting a personal loan only after you are well-informed about how you are investing the funds. Most essentially, make sure that you get an offering through a reputed lender like Muthoot Finance Personal Loan. The favourable loan terms and no hidden costs make the funding option an extremely good opportunity to enjoy better investment returns.