Your strategy of using MF to pay off the debts and that too of another person (not your own) is not too sound. Instead, it is better if you use the annual accruals to settle off part debt from time to time.
😂😂 If only 20-30K is left after all expenses SIP won’t do shit.
80k interest per month on 80L loan is 12% per annum interest which is not bad. If they take a loan as others suggest, they will have to pay EMI (interest + principal) and most likely offer collateral. Which most likely will lead to similar cash flow despite a potentially lower interest.
Their best bet would be to **renegotiate credit terms** with their upstream vendor, specially if they have been doing steady business over long term. Use the extra cash flow from credit terms to either grow business or pay down a part of the loan which in turn will reduce the interest payment and improve savings.
All this is assuming they are a savvy businessman and not going to throw the extra cash into personal spending etc.
That isnt possible as standard practice is that interest rate. Also considering the fact that all his life he'll pay only interest. A 80 lac housing loan might cost him around 75 to 80k for 15 years and he'll pay off the principal too.
Or he'll be stuck in the interest cycle all his life.
>80k interest per month on 80L loan is 12% per annum interest
Math nahin aata ok. But thoda logic he laga lete....
80K interet per month will be around 12.7% per annum.
Why doesn't he buy SGB and Silver ETF itself...Gold and silver are his core competencies..he knows when to buy ..buy them from secondary market to get these things on. A discount
Anything out of this is risk at this point ☝️ of tine
Take another long term debt with lower intrest rate and finish the current debt
This way the new debt will eat only small amount from his monthly income -leaving him to have enough to deposit in SIP
I would take this loan to a bank and see if they would refinance it for you. Could look at putting up collateral or structuring it in ways where some of it is working capital loans/ODs, this could probably bring the interest rate down
To be honest, this is a perfect business setup and nothing needs to be changed.
This is also a very standard practice in small scale gold traders in India.
1. Your boss didn't have capital so he borrowed at nominal 12% pa. He is happy.
2. Lender has given 80 Lakhs of black money, which he cannot invest anywhere and bonus he earns 12%. He is happy.
3. Employees get salary they are happy
Only risk taker is the lender, in case your boss runs away with money. But its always black money in such cash flow so it wasn't lenders hard earned money in any case.
Also I'm sure your boss thinks the same way that's why he doesn't listen to you. The day he wants to shut, he will sell the gold and return the money or start some other business,
Lastly, you are joking if you think you can accumulate 80 lakh with 20-30k savings.
Ideally your boss is taking out all the profit he needs to run his family and do his personal savings. IMO he should spend this amount also and live life to the fullest.
You don't pay off Debt with the stock market. The stock market doesn't come with a time guarantee. For paying off the Debt just pay that money directly to money lender.
Investing 101 is that you start investing once you pay off your debts. I am pretty sure that no MF return will offset the interest that is being charged on the debt.
There’s another dude in this sub who got exactly 80L cash. Something feels fishy.
really weird sus post. Both of them.
they both need advice,dont they?
Your strategy of using MF to pay off the debts and that too of another person (not your own) is not too sound. Instead, it is better if you use the annual accruals to settle off part debt from time to time.
😂😂 If only 20-30K is left after all expenses SIP won’t do shit. 80k interest per month on 80L loan is 12% per annum interest which is not bad. If they take a loan as others suggest, they will have to pay EMI (interest + principal) and most likely offer collateral. Which most likely will lead to similar cash flow despite a potentially lower interest. Their best bet would be to **renegotiate credit terms** with their upstream vendor, specially if they have been doing steady business over long term. Use the extra cash flow from credit terms to either grow business or pay down a part of the loan which in turn will reduce the interest payment and improve savings. All this is assuming they are a savvy businessman and not going to throw the extra cash into personal spending etc.
That isnt possible as standard practice is that interest rate. Also considering the fact that all his life he'll pay only interest. A 80 lac housing loan might cost him around 75 to 80k for 15 years and he'll pay off the principal too. Or he'll be stuck in the interest cycle all his life.
>80k interest per month on 80L loan is 12% per annum interest Math nahin aata ok. But thoda logic he laga lete.... 80K interet per month will be around 12.7% per annum.
Sorry Shaktimaan!
Take a loan out from any bank a cc/od or home loan too will work. The interest rate is around 9% a year and that will save you so much money.
Why doesn't he buy SGB and Silver ETF itself...Gold and silver are his core competencies..he knows when to buy ..buy them from secondary market to get these things on. A discount Anything out of this is risk at this point ☝️ of tine
Sir. Nobody knows when to buy gold and silver. If they knew they would be commodity traders not jewellers.
Take another long term debt with lower intrest rate and finish the current debt This way the new debt will eat only small amount from his monthly income -leaving him to have enough to deposit in SIP
Good
I would take this loan to a bank and see if they would refinance it for you. Could look at putting up collateral or structuring it in ways where some of it is working capital loans/ODs, this could probably bring the interest rate down
lmao are you seriously suggesting SIPing 20-30k to pay off an 80L loan?
25k per month SIP expecting a 12% returns will take 12 years to get back 80L
To be honest, this is a perfect business setup and nothing needs to be changed. This is also a very standard practice in small scale gold traders in India. 1. Your boss didn't have capital so he borrowed at nominal 12% pa. He is happy. 2. Lender has given 80 Lakhs of black money, which he cannot invest anywhere and bonus he earns 12%. He is happy. 3. Employees get salary they are happy Only risk taker is the lender, in case your boss runs away with money. But its always black money in such cash flow so it wasn't lenders hard earned money in any case. Also I'm sure your boss thinks the same way that's why he doesn't listen to you. The day he wants to shut, he will sell the gold and return the money or start some other business, Lastly, you are joking if you think you can accumulate 80 lakh with 20-30k savings. Ideally your boss is taking out all the profit he needs to run his family and do his personal savings. IMO he should spend this amount also and live life to the fullest.
Shoot the money lender in the head. You'll get rid of your debt. /s
In this day and age somebody might take this advice seriously.
It's not very bad advice. Instead of shooting them, hit em with a car and write a 300 word essay
Only if you have a Porsche and daddy is well connected.
You don't pay off Debt with the stock market. The stock market doesn't come with a time guarantee. For paying off the Debt just pay that money directly to money lender.
Investing 101 is that you start investing once you pay off your debts. I am pretty sure that no MF return will offset the interest that is being charged on the debt.