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

    @stephen68 You don't even need to bring behavioral economics into the picture. The arithmetic does not add up. You cannot arbitrage/profit from a loan by investing at a rate lower than your borrowing cost. It just does not add up. The guy is presuming that he does not use the 1 lac capital to...
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    Argument for taking loan for purchasing instead of using available cash(If total amount is available in cash)

    @claudiaspollen Sorry, to say the crux of the proposal is flawed. You cannot arbitrage at a rate lower than your borrowing cost. If you earn 6.6% on 100k and make an EMI of 1,660 from it at 10%, you will run out of money in 6 years year withdrawals interest balance 1,00,000 1 19,920...
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