If yo want up to Rs 20 lacs then ICICI or any other bank is there if you want more hen there are these NBFCs which have no such upper limit.

But I repeat. this is dangerous and has the power to wipe out the entire portfolio so only if one is willing to cut the losses should one go in for such an arrangement plus there have to be real compelling opportunities in the market.


QUOTE=praveen]

Originally posted by basant   ...... Borrowing for quiet ideas can be done if the yield makes up for most of the interest costs. This is what Rakesh Jhnjhunwala did in the late 90's when he bet on Engineers India; BEL; BEML; GE Shipping etc.....

I wanted to do something similar in Jan-Mar but couldn't do it becuase the cost of funds was too high for my comfort. [/QUOTE]

I have built up my entire capital by using leveraging.Remember to save 10 lacs it will take ages but u can easily get a loan of 10 lacs.Important point is where do you invest that leveraged sum & the return you get should be mare than waht you have to give.

Edited by TCSer - 18/Jan/2010 at 3:27pm

Listen carefully when Goan people give advise on gambling...

I am following simple strategy..by saving as much possible and investing with some short term trading..as mentioned by fellow boarders one needs to build handsome surplus to hang boots.. i think one needs at least Rs 5 Cr(without own home) to stay comfortable for times to come which would include kids' education, home loans and keep following one's passion i.e. "investing"..as an ordinary investor one might be required to keep good amount in liquid/debt form to take care of 3-5 yrs of expenses for bear run or other shocks...

I did use ready credit facility provided by Citibank for a month with almost negligible cost..i drew arnd 1 lac from that facility and bought Lupin in delivery after giving some thought(in fact wanted to buy futures of Yes Bank).. and i got shock when it went down by 5% next day but by end of month made around 12% and paid back to Citi on last day of the month with 0.8% gross cost including tax & fees which was supposed to be free..anyway i decided not to do it again .. i was very sure about Lupin as it was going through very strong rerating.. it might have gone wrong but my luck was good enuf..

I have decided not to use leverage until i'm 110% sure..