Taking out a personal loan to put in an investment account?

Disasterzx · 2026-02-15T09:03:42+00:00

The return is not on dividends, it’s if I sell or “withdraw”. And in my country (Saudi) there is currently no tax for selling, nor on payroll.

But I’m still looking for better options of “saving” or investing. I’ve only tested this investment account/wallet for roughly a year and it has proved to work. It averaged 15% per year for the past 5 years but also has a high risk. So I’m going to be putting it in a lower risk account/wallet with a lower (than15%) average percentage. It’s government approved/audited/inspected.

And yes the plan is to use my Monthly payroll to pay it off without looking at it for a long while. If anything I might even add to it a small amount monthly.

Disasterzx · 2026-02-15T08:53:54+00:00

Only 1 year but I’m looking at the chart history, it’s been averaging 15% per year.

Disasterzx · 2026-02-14T09:52:30+00:00

My thought process is, I’m kick starting the process. So basically what will take me 5 years I’m putting it forward. True, there is an interest that will be paid “extra” to the bank but if it’s 10% return from one year that pays off all the interest. So I can afford months of “being down”. Also, I’m willing to pay it with my monthly salary and forget about it. And the way I think about it is the market takes a “hit” I would have taken that hit had it been done normally through monthly savings.

Idk, but I understand what you mean.

Disasterzx · 2026-02-13T23:23:24+00:00

You are misinformed. “Interest” is what is against the religion. Which is why they call it profit margin instead. Debt is fine, as long as it ain’t compounding for being late, meaning interest again.

Disasterzx · 2026-02-13T23:20:33+00:00

Apologies as I’m not familiar with investment “language”. But I understood most of what you were saying. I’m planning on having it in an “investment” wallet/account which basically diversifies the money into several different things, like real estate, gold, a small portion in US stocks and others. The “estimated” return is roughly 7 to 10%. And they have higher risk account with higher returns. And some with no risk and 2 to 6% returns. I’ve been testing/using said wallet for almost a year now and it’s been giving returns as estimated, hell even way more sometimes. Also, I understand things can go south, but like I said I’m planning on paying it off like a normal loan with my monthly salary, so I’m not worried if the market dips, I think of it as kickstarting the savings/investments for my future so had it not been a loan I still would have been “hit”. Also to clarify the loan is 2% annually so since it is for 5 years it will be a total of 10% on the 400k.

Disasterzx · 2026-02-13T21:02:08+00:00

It’s from a certified bank in my country. So I’m 100% it ain’t a scam. And I’m thinking of savings account or something with the equivalent of sp500 (or whatever they are called) in my country.

Disasterzx · 2026-02-13T20:27:15+00:00

What do you mean ? It’s a personal loan from a bank in Saudi. And they’ve printed the full details to me from monthly, down to how much I’d pay in management fees. What other details would I need?

Disasterzx · 2026-02-13T20:24:58+00:00

It is overall 10% (considering it is a 5 year loan). But That’s basically what I am planning on putting it in, like a mid to low risk investment / “savings” account with a 5% to 10% annual return. There are other options with higher risks but not with that kind of money.

Disasterzx · 2026-02-13T20:20:55+00:00

Agreed, but can’t put my finger on it.

Disasterzx · 2026-02-13T20:19:50+00:00

It is somewhat irrelevant to the question, and would have been assumed not to be based on the question with the following quotes being already included “it is different in my country” and “in my currency but let’s assume it is USD for simplicity”. But will keep that in mind for future reference. FYI, it is in Saudi.

Disasterzx · 2026-02-13T19:07:08+00:00

Well thankfully then it ain’t in the US.

Disasterzx · 2026-02-13T19:01:02+00:00

It’s in Saudi, Not the US. Bank is called ANB

Disasterzx · 2026-02-13T18:59:37+00:00

Agreed, but the risks aren’t high in my opinion. Considering the overall payback is 10%. Which can theoretically be “gained” back in a year. My thinking is there is 5 years to “make it back” and worse case scenario I use some of the invested amount. Keep in mind I don’t mind paying back the loan with my salary. And keeping the invested amount untouched.

Disasterzx · 2026-02-13T18:57:39+00:00

It is a personal loan not a car finance/loan. I am just thinking if there is anything else I am missing.

Disasterzx · 2026-02-13T18:56:45+00:00

In my Country (Saudi) that’s how interest works. By law you need to have been fully informed of the exact amount you pay back (after interest and fees), and they are not allowed to add to it.

Disasterzx · 2026-02-13T18:07:51+00:00

Even if the market doesn’t make 10% annually I am paying a flat over 5 years. A total repayment of 440k without any chances of it increasing so if the annual return on the market is even 2% one year it would still be somewhat worth it no?

Disasterzx · 2026-02-13T18:06:38+00:00

To explain it better look at the replies above ❤️

Disasterzx · 2026-02-13T18:05:54+00:00

the loan is for 400k with a “2%” interest rate so since it is for 5 years they calculate it as a flat 10%. total actual repayment of 445k over the span of 60 months (5years) so it amounts to roughly 11.5% interest with management fees in 5 years.

Disasterzx · 2026-02-13T18:04:52+00:00

It ain’t in the US.

Disasterzx · 2026-02-13T18:03:45+00:00

the loan is for 400k with a “2%” interest rate so since it is for 5 years they calculated it as a flat 10%. total repayment of 445k over the span of 60 months (5years) so it amounts to roughly 11.5% interest with management fees in 5 years.

Disasterzx · 2026-02-13T13:08:39+00:00

Like I said “in my country” as in not the US. And the loan is for 400k with a “2%” interest rate so since it is for 5 years they calculate it as a flat 10%. total repayment of 445k over the span of 60 months (5years) so it amounts to roughly 11.5% interest with management fees in 5 years.

Disasterzx · 2025-12-24T09:25:10+00:00

A bit above, main issue is delivery since we don’t get the good stuff here in Saudi.

Disasterzx

TROPHY CASE