Posted On
8/4/2022
12:30:16 PM
by
Me
I strongly suggest spend and save only your earned money. Never take loan even if you get interest free
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Posted On
8/4/2022
2:53:41 PM
by
Kurian
Thanks, Mr. Me for your comment. But what risk in taking a loan in Kuwait?
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Posted On
8/4/2022
6:57:53 PM
by
indian
@kurian so many years in kuwait i could never save. then when i get chance i took a loan @3% sent it to india put in FD and MF. somehow every month for 5 years i paid the loan off. now i have some savings finally.
it all depends on you. can you repay can you save properly can you invest wisely if you can sure you will benifit.
now loan u get here @5% invest some in FD some in MF and try to take it for 5 years no need 10000 think what will be easy to repay take 5000.
also anytime you want to leave kuwait transfer all that saved money u took from india and repay loan in 1 time.
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Posted On
8/4/2022
7:36:39 PM
by
Qutub Shaik
Dear,is kfh bank giving loans now?because i heard they closed to giving loans to expats.my salary ac in kfh if you know any agent in kfh please tell me.my salary is 423 and iam working in ministry and looking for a loan..
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Posted On
8/6/2022
9:22:08 AM
by
SKS
@Kurian, Taking a loan is not problem, Paying EMI is challengeable. Doing SIP or paying EMI is both same (In Broader expect), Taking loan is far better then saving monthly. Because you can do some good work with loan like Home, Plot, business etc w.r.t. saving every month for years & years. One more point is, Inflation eat your hard earned money with monthly saving & at last you can''t make anything big in life. Paying consistent SIP or EMI both are challenging but fruitful.
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Posted On
8/6/2022
10:26:44 AM
by
Kurian
Dear Indian, thanks for your reply. It is hard to save monthly but if we take a loan we will pay the EMI definitely.
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Posted On
8/7/2022
8:38:13 AM
by
Shaji
@Kurian,
There are few things to consider before jumping in to a loan.
How much extra you need to pay back to the bank on top of 10K (Since KFH is islamic bank no interest, they charge you a fixed amount as their profit)?
What is the monthly installment amount?
Are you able to pay the installment without defaulting?
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Posted On
8/7/2022
10:25:17 AM
by
The Kay
Kurian work on your financial discipline.
1. Taking a loan and investing that money because you can''t save every month is a behavioral finance problem. If you make losses in that investment, you will pay EMI for the money you didn''t make any use of. Remember you are not just paying the money, but you are also paying the extra interest on it.
2. You are not sure what is the best investment for you and how to invest the money. I am sure you will do your own research based on the recommendations here. But if you''re asking this question in a forum, then you shouldn''t take a loan and invest.
3. If you still want to take the loan, considering Forex Risk, Interest Risk, and inflation Equity is the only place you should invest, Real estate is also good but you need to pay hefty fee and you need to add liquidation risk. If you are investing in Equity, better choose an index fund (direct and growth). Invest only through SIP mode over 12-18 months, don''t put all your money in one go.
If you add forex risk your interest rate is not really 5.25%, you will end up paying around 7%.
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Posted On
8/7/2022
12:13:51 PM
by
INDIAN
@ kurian i also was not able to save as every month salary would come and we will spend accordingly. once i took a loan my monthly instalment will get cut as soon as salary come in bank so i learnt to live in that balance amount. it was not easy some months i found it difficult i also had a credit card which i used for safety only. i had taken a loan against my indemnity so i was having peace of mind that if any issue i can always pay it off and also what loan i took i invested all i did not buy a house or car or etc... i save all and if i had any problems i could bring back all the saved amount to kuwait to pay back loan. as i said dont listen to others. you have to decide and plan and follow it up as you know what will happen in your life in next 5 years not us. good luck bro. God bless
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Posted On
8/7/2022
12:20:23 PM
by
indian
Also... if you r getting loan you are working in ministry MOH or something. as no expats in private sector is getting loans. in that case you wont find it difficult to repay it. you have steady job. Also take the loan with insurance. if anything happen your family are not responsible to pay anything. take insured loan. also invest in different places like FD, shares, MF etc... dont put all in 1 place.
rest if you need anything post here.
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Posted On
8/7/2022
12:44:22 PM
by
Well Wisher
Let''s analyze the Pros and Cons of taking Loan for Investment purpose (Assuming the investment is less risky, like land in a good area, FDs etc)
PROs 1. You cannot spend the EMI elsewhere. You need to pay it to bank and It is already been invested (Provided you are not touching the investment). People tend to over spend money only if it is available in hand and may reduce the amount put into savings. 2. Long term Investments are better made early. You may miss out on good opportunities if you wait for your savings to grow to a substantial amount required for investment. Sometimes you get good properties at a discounted rate when the seller wants to sell it urgently. If you have your money ready in an FD or so, you can grab such opportunities. 3. Peace of mind that there is a considerable savings already done.
Cons: 1. FDs may not yield returns equal to loan interest plus the exchange rate changes. You may slightly lose. On the other hand investing in MFs, Stocks are high risk and may even erode your capital. Still on a long run they may recover and look decent. Investing in land is always a liquidity issue. You may not get back your money in time if there is an emergency. Land may also stop appreciating in some cases due to various reasons. 2. You are forcing yourself to work for next 5 years in Kuwait without giving yourself an option to relocate to India at will. 3. Risk of job loss or undesirable job change.
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Posted On
8/7/2022
2:22:29 PM
by
Kurian
Dear Indian thanks for the message, i am working in the private sector. Don''t think MOH staff only get a good salary. An Indian accountant with 10years'' experience will get a minimum of 750 KD in Kuwait now. I have 15 years'' experience in warehouse and I am working as a warehouse supervisor and I am getting around 650 KD. but my first salary was 75 KD do u believe ?
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Posted On
8/8/2022
11:38:35 AM
by
AR
@Kurian, Thanks for sharing the details. Appreciate if you can provide the details on getting a loan from KFH,
How many times your salary are you eligible to borrow. How much did they offer you? What is the monthly installment and for how long? Last but not least can you share the contact of KFH representative?
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Posted On
8/8/2022
12:20:55 PM
by
INDAIN
@ kurian God bless and may you get more for all your hard work. just want to confirm are you getting loan against indemnity as otherwise banks are not giving loan. except MOH or ministry staff. this what NBK told us when we go to take loan few months back. can you clarify
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Posted On
8/8/2022
12:27:05 PM
by
INDIAN
@ kurian if loan is against indemnity. GO FOR IT. nothing to loose or take stress as bank and you both are in safe hands and other thing is company also liable to pay bank indemnity amount if you dont pay so that way you are also safe. invest all mostly in FD the safest place and even if you dont get high interest its ok as your principal is saved and you made savings in next 5 years. which is your main aim
go for it. take it. people will give you high fundas and calculations. but keep it simple and invest in SBI or safe FD for 5 years and you will be good.
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Posted On
8/8/2022
12:54:31 PM
by
Watan
@INDIAN, you seem like a financial expert. Your comments are very useful and reliable. Could you please suggest me some good MFs and other investment plans. Your reply is much appreciated. Thanks brother.
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Posted On
8/8/2022
2:22:04 PM
by
The Kay
Indian, I am curious to understand how much we can make if we take a loan in Kuwait and put an FD in India. Do you mind helping us with numbers?
As per the website, SBI FD rate for up to 5 years is 5.45% and the interest rate in NBK is 5.5%.
There is TDS (Tax Dedudcted at Source) for the interest earned from FD. This is 30% and cess for NRIs. You can ignore the Forex transaction.
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Posted On
8/9/2022
7:32:29 AM
by
JAJ
@The Kay, TDS for NRE FDs? From where have you received this information? TDS is applicable to NRO accounts and domestic Savings Account, not for NRE Accounts. If your NRE Account is being deducted for TDS, you need to ask your bank manager why, and put a stop to it.
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Posted On
8/10/2022
7:29:44 AM
by
Shah
Mr.Kurian many people here are waiting for your advise on getting a loan.
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Posted On
8/10/2022
9:23:34 AM
by
indian
@ all i am not expert, just a normal person with minimum wage in kuwait who could not save for many years and when got a chance for loan @3% I took it and invested in india not with intention to earn good interest but just so that I can save some money. I invested in MF and FDs and shares and got 8% to 12% returns. which is not so much. but as i said my main intention was to save money. it was hard for 5 years i somehow managed. some months were very bad. had to live in a tight budget. now the loan is @5% here and india you get 6 to 7% in some MFs & SBI FDs if you want more invest in shares. you can check market ur self or ask someone here as I am not so much into it.
the main aim for kurian is to save some money and this is what he can do if he plays his cards right.
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Posted On
8/10/2022
10:10:16 AM
by
The Kay
Indian this is a discussion forum, take it easy man. Don''t get personal we are not talking about anyone''s pay/wages, status here.
The idea is to discuss and help each other with the facts/knowledge so that they can decide what''s good for them.
Taking loan for investing is not an idle way of investing.
People take loans because they don''t have savings or investments, not the other way around. Saving and investing are two different things, they are not the same.
If you are not sure about taking financial decisions, approach a fee-only financial planner.
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Posted On
8/10/2022
1:09:10 PM
by
Watan
"INDIAN" and "indian" same person or different?
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Posted On
8/11/2022
6:49:07 AM
by
Kurian
The key, thanks for the reply. So what is your suggestions about investments? Can I know how you plan your investments?
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Posted On
8/11/2022
8:51:31 AM
by
Investor
Take a loan only if you have an immediate requirement, like constructing a house or if you have a good investment opportunity (stock market if you are confident). Taking a loan for starting an FD makes no sense.
1) In India, FD doesnt even beat the inflation (around 7%). Hence, you are actually losing money. 2) On an average, Indian currency is depreciating about 4% per year vs USD and assuming KWD to be stable against USD, same rate against KWD. Hence, you are losing money further. 3) People think that the interest rate in Kuwait is about 3%. Yes, if it is the flat rate. But you need to actually calculate the diminishing rate (you are paying back part of the money every month) as they do in India. Effectively, the interest rate is about 6%.
The only reason for taking a loan is for people who have compulsive spending habit (if they have money in hand, they will spend it on something). The solution to it is change of habit and not taking a loan.
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