Loan for Investing in other country at 8% fixed

niser

Hi,
Please move it to the appropriate section. I am international student with UK government funding. In my country the interest rate on fixed deposit in bank is 8% per year. So if I can get a loan here in 5% to 6%, then I can invest that in my country and get profit.
But as I am a student(started my study in sep 2014) the banks are not giving me loan. even peer to peer lending is also not giving me as I have not been in UK for 3 years.
So please let me know if I can get loan from somewhere. I am even ready to share the profit and :beer: with the lender.
Thanks

CHR15

That won't happen sport.
You need a job and some evidence you won't be following the money overseas.
Besides, shifting money internationally is not that simple or everyone would be doing it.

Voyager2002

Which country? And what is the inflation rate?

I remember studying abroad, and being very excited to find that my bank there would pay interest of 17 per cent. I was a little less thrilled to find that the inflation rate was 22 per cent.

DaveTheMus

niser wrote: »

Hi,
Please move it to the appropriate section. I am international student with UK government funding. In my country the interest rate on fixed deposit in bank is 8% per year. So if I can get a loan here in 5% to 6%, then I can invest that in my country and get profit.
But as I am a student(started my study in sep 2014) the banks are not giving me loan. even peer to peer lending is also not giving me as I have not been in UK for 3 years.
So please let me know if I can get loan from somewhere. I am even ready to share the profit and :beer: with the lender.
Thanks

I would like to know how that works...

Foxy-Stoat_3

niser wrote: »

Please move it to the appropriate section.

Mods, is there a "dreamers" section?

jon1555

niser wrote: »

Hi,
Please move it to the appropriate section. I am international student with UK government funding. In my country the interest rate on fixed deposit in bank is 8% per year. So if I can get a loan here in 5% to 6%, then I can invest that in my country and get profit.
But as I am a student(started my study in sep 2014) the banks are not giving me loan. even peer to peer lending is also not giving me as I have not been in UK for 3 years.
So please let me know if I can get loan from somewhere. I am even ready to share the profit and :beer: with the lender.
Thanks

Seems Legit, please provide details of :beer:

macca1974

Interesting idea....if you are in another country with much higher interest rates, then presumably the fixed rate deposit would be in the currency of the country that you are in? Therefore this isn't at all risk free as you are also speculating on the currency. If inflation is high enough that the interest rate is so high then it is likely that the currency is weak and you may end up losing out (or gaining who knows). I suspect that the bank is unlikely to think this is a good idea.

So as an example

You can get 8.3% 1 year fixed from a bank in Russia (just googled it as an example), but its in Roubles. So if you'd done the same this time last year, £10K GBP would have brought you 514,300 roubles (51.43 roubles to the pound), interest over a year at 8.3% would have brought that up to 556,986. However, roubles are a lot weaker to GBP now (65.72 roubles to the pound) so if you converted it back, you'd only get back £8,475 ish.

So if I was a bank and wanted to speculate on currency risk / foreign exchange rates etc, I'd probably get my investment banking division to do it rather than a speculating student (no offence) and thanks for an interesting question whilst i was having a coffee.

Clive_Woody

niser wrote: »

Hi,
Please move it to the appropriate section. I am international student with UK government funding. In my country the interest rate on fixed deposit in bank is 8% per year. So if I can get a loan here in 5% to 6%, then I can invest that in my country and get profit.
But as I am a student(started my study in sep 2014) the banks are not giving me loan. even peer to peer lending is also not giving me as I have not been in UK for 3 years.
So please let me know if I can get loan from somewhere. I am even ready to share the profit and :beer: with the lender.
Thanks

So I give you money which you then send abroad to an unspecified country. If things works out really well I get to split the 3% profit with you.

How could I possibly refuse. Let me just check with my Nigerian banker friend as I am sure he would be up for this kind of opportunity and would hate to miss out.

TBeckett100

This is what banks/financial institutions do, borrow money from Japan and buy Australian/US debt.

The problem with small scale investment is exchange rate fluctations. The 5% margin you will make could be wiped out or go negative if interst rates go the wrong way. This is what hedge funds do and many of them have underperformed this year as there is little margin.

bargainbetty

The OP seems to have forgotten that repayments would need to be paid each month, and the currency transfer fees on that alone could wipe out any profits. You don't get a loan and pay it all back at the end - you pay it back in instalments.....

bris

It doesn't work, it may very well be a scammer looking for someone to take him up on his get rich quick scheme, there is always someone willing to fall for things like this.