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Personal Loans to Buy Shares | MoneyMe

Shares have the potential to be a valuable investment, but before taking out personal loans to buy shares you’ll need to weigh up the pros and cons. Share prices can fluctuate frequently so although you can make money quickly, you can also lose money just as fast. So if you take out personal loans to buy shares, you’ll need to make sure you’re in a financial position to meet your personal loan repayments without relying on money you make from your shares.

Whether your share portfolio does well or not so well, you will need to pay back your personal loan along with any interest and associated fees regardless. Also, investing in shares is often a long term investment strategy rather than a short term one, so you may not see a lot of profit until after you have already needed to pay your personal loan back.

Is it safe and recommended?

You may be wondering if is it safe to use a personal loan to buy shares. Like all investments, buying shares comes with risks so you’ll need to assess these risks before making a decision and then decide what is best for you. Before taking out personal loans to buy shares make sure you do your research and unless you are an experienced investor, it can be a good idea to get professional advice from a financial adviser before buying shares. 

When taking out a loan to buy shares there are different options available. For example, you could take out an unsecured personal loan or you could take out a secured loan, such as a margin loan where the shares can be used as security. If you choose to use a personal loan, you will need to decide whether you want to take out short term loans or long term personal loans and whether you want a fixed-rate personal loan or a variable rate personal loan. Banks and other money lenders may see personal loans to buy shares as being riskier than taking out personal loans for other purposes so you may find your interest rate is higher than it would be otherwise.

Know how much you can borrow

As with any other personal loans, when taking out personal loans to buy shares it pays to do a personal loan comparison in Australia. When making your comparison, make sure you consider the comparison rates as well as the interest rates to get a better idea of how much the loan will actually cost, as the comparison rate also takes into account some of the fees and charges.  

Many lenders, including MoneyMe, have free online personal loan calculators so you can work out what your personal loan repayments are likely to be based on how much money you want to borrow and for how long before you apply for your loan. Whether you need a $5,000 personal loan, a $20,000 personal loan, or a $30,000 personal loan, MoneyMe offer low rate personal loans ranging from $2,100 up to $50,000. You may be wondering how to use a personal loan to buy shares. At MoneyMe although it will work like any other personal loan, we do consider the reason for your personal loan when assessing your application so you’ll need to let us know you are taking out the unsecured personal loan to buy shares. When determining your personal rate and how much you can borrow, we take also take into account your credit score as well as your income, employment history, and general living expenses. As an online lender who holds an Australian Credit Licence, MoneyMe is committed to fair and responsible lending so we want to make sure you take out a personal loan that you can comfortably afford to repay.

Apply and get an outcome in minutes

Once you’ve decided how much you want to borrow and are happy that you will be able to comfortably meet your repayments, now it’s time to apply online. To do this, simply head to the ‘apply now’ button to start the super quick application process. Once we’ve received your application, using secure and fast technology, we should be able to give you a decision very quickly. With Proviso technology, we can quickly access 90 days of your bank statements online which saves you from sending us a lot of paperwork. We only have read-only access and, just like your banking website or app, we use SSL encryption to keep your details safe. Once your personal loan to buy shares has been approved, you should have the money in your bank account before you know it. Depending on who you bank with, and if you apply within business hours, in some cases you can get access to the funds in under an hour. 

If you have any questions about personal loans to buy shares, you can call us on 1300 592 167, send us an email or contact us online. MoneyMe provides fast, reliable loans online with low rates tailored to your profile and no hidden fees. Apply online today for a no-obligation personalised offer.

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