Manav Narang's Financial Tip: How Loans Can Make You Richer

Finance influencer Manav Narang feels that loans are not debts but tools to create wealth. Without investors or loans, large corporations like Tata, Ambani, or Adani would not exist. The only thing is to utilize loans smartly for the right reason at the correct interest rate.

Loans Can Make You Rich – Here's How!

Loans Help Businesses Grow

For businesses, loans are an ideal means of obtaining funds. They give working capital, provide early payment discounts and better cash discounts. Your personal savings have a limit, but with loans, you can grow and keep ahead of others.

Home Loans Are the Best Loans

Home loans are one of the lowest loans, with rates ranging from 8% to 9%. Rather than spending your additional money on a house, you can invest in index funds, which can provide you with 12-14% returns. That way, you make more money while still being able to afford a home.

Education Loans Are Worth It

If your course promises a high-paying job (12-15 LPA and above), then opting for an education loan is a good decision. Repayment generally begins after six months to a year, providing you with time to earn before repaying.

Steer Clear of Costly Personal Loans

High-interest personal loans (16% or higher) will land you in debt. The interest gets compounded quickly, making it difficult to repay. Always try to stay away from taking unsecured personal loans unless the need is necessary.

Beware of Zero-Cost EMI and Buy Now, Pay Later

These offers may seem attractive, but they push you to purchase things that you cannot afford. In the long run, they result in excessive debt. It is better to spend wisely and not create unnecessary financial pressure.

View this post on Instagram

A post shared by Manav Narang (@learnwithcamanav)

Loans can make you wealthy if used wisely. Take loans only for things that will be valuable in the future. Be intelligent, be cautious, and make wise financial choices!