Can retail investor borrow money for low interest from international market?
In some countries some institutional corporations have benefits of borrowing loans for very low interest rate from international market and therefore they have advantage over other players in the market. Some carry traders also have edge of borrowing low cost money from one country and then investing in another currency. Thanks.
Answers
312 points
Market101 answered one year ago …
I don't think so MNSL...I think it really has to do with credit worthiness and less to do with international/domestic traders. If you have collateral, you can get favorable loan terms anywhere.
Read more from Market101 flag as abuse great answer
145 points
amit answered one year ago …
low interest loan in international market i dont think it posible .....but may be u can have it because of the peresnt sitution as bank are cutting there interest rate and ur a retailer so may be some countery can provide u loans i dnt know other country but in india there is compitation kind of situtation banks are know providing loan esaly soon as it is possible
Read more from amit flag as abuse great answer
1130 points
sundarkambam answered one year ago …
Theoretically it is possible if the rules of the lender / Bank permit giving loan to foreigners on foreign collateral.
Take the example of Japan, where the lending rates are around 2%
You can borrow at 2% and invest in high yield bond and pocket the difference ( smart isn't it?)
In practice, banks are reluctant to lend money for investing outside their country.
Even if one does succeed in getting such a loan , one has to keep in mind currency movements while adopting this strategy.
Some investors have made fortunes while others have burnt their fingers.
108 points
ericmr answered one year ago …
Yes, a foreigner can - and often must - borrow their investable money in the country is will be invested in. In other words, if you buy a property in Canada as a US citizen, then you will have to get that mortgage in Canada unless you have cash. No US based bank will lend you money on Canadian collateral. You can also get your money from private investors in that country if their terms are preferable to you. However, it is unlikely that you'll get an uncollateralized loan from a foreign country (any source) if your potential lenders don't have recourse to collect from you. As such you'll need to be fairly wealthy with a global asset base - it all comes down to recourse and collateral.
Read more from ericmr flag as abuse great answer
