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    Argument for taking loan for purchasing instead of using available cash(If total amount is available in cash)

    @resjudicata No! The calculation is for post tax returns. As I have replied in other comment quoting "For example: If you take a loan of Rs 1,00,000 at 10% interest The total interest at the end of 7 years is Rs 39,450 So you need a CAGR of 4.86% but if you are in a 30% tax bracket you have...
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    Argument for taking loan for purchasing instead of using available cash(If total amount is available in cash)

    @nol Go on check the calculations for yourself and check if the assumption is correct. Please also see the final edit.
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    Argument for taking loan for purchasing instead of using available cash(If total amount is available in cash)

    @terranova A Tax deduction is not required! I think you misunderstood the post . The tax brackets are for how calculating how much more returns you need to break even in the particular tax bracket. For example: If you take a loan of Rs 1,00,000 at 10% interest The total interest at the end of 7...
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    Argument for taking loan for purchasing instead of using available cash(If total amount is available in cash)

    @huckfinn151 You are right I changed my mind. Please see the edit
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    Argument for taking loan for purchasing instead of using available cash(If total amount is available in cash)

    Disclailmer: This is not financial advice. Iam not a financial advisor. Do your own research If you have cash to purchase say a car , it is better to purchase it on a loan and invest the amount suitably because the CAGR return needed to breakeven with interest cost is way lower than the bank...
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