Cheap rate international loans
- Thread starter Skyfire
- Start date
Nice idea.
I too would like to know if anyone is doing or has done this?
Surely though, to get a loan from another country you will need to be a resident there or have some form of asset in that country, for the loan to be secured on it. For most of us this is not possible. Otherwise, a few years ago when Japan had near 0% interest rates many people around the world would have taken huge loans out and then deposited them in countries with accounts offering super high interest rates (I believe Turkey had very high interest rates a few years back).
I too would like to know if anyone is doing or has done this?
Surely though, to get a loan from another country you will need to be a resident there or have some form of asset in that country, for the loan to be secured on it. For most of us this is not possible. Otherwise, a few years ago when Japan had near 0% interest rates many people around the world would have taken huge loans out and then deposited them in countries with accounts offering super high interest rates (I believe Turkey had very high interest rates a few years back).
If its in developed countries then there won't really be any gain to you, as there is a link between interest rates and exchange rates, so if the interest rate is higher, then the exchange rate will be lower so it equalises out. Banks switch money around to try and take advantage of this, so you won't really make any money out of it, and if the exchange rate changes a little bit then you will lose out.
Hope that helps
Hope that helps
Do us a favour and stop making silly threads with such regularity, thanksSkyfire said:Hi,
The best savings interest rate I found for non-tax payers on 50k is about 5.5%, is it possible to get a loan from another country at a lower rate and pocket the difference? Anyone done this?
Erm, why is this a silly thread? It is a perfectly viable option to make money. Banks do this and I dont see why the man on the street shouldnt be able to do so.
But as the people above have stated, there is a big chance that you can lose money if exchange rates change. Also stated was that this can be done but banks get onto it pretty quickly meaning that the man on the street wont really be able to compete and be fast enough to take advantage.
But as the people above have stated, there is a big chance that you can lose money if exchange rates change. Also stated was that this can be done but banks get onto it pretty quickly meaning that the man on the street wont really be able to compete and be fast enough to take advantage.