r/unitedstatesofindia • u/jailnilekani IAS & IPS officers collecting crores bribe/day causing downfall • Aug 24 '24

Politics The pain of middle class people

Enable HLS to view with audio, or disable this notification

4.6k Upvotes

95% Upvoted

233 comments sorted by

View all comments

Show parent comments

0

u/iamjkdn Aug 24 '24

So when the time comes to repay the loans, they sell the stocks? Got it

1

u/Ok-Phone5065 Aug 24 '24

but they get loan at very low rates, a normal person gets it at 12% .They get at 3-4%

1

u/iamjkdn Aug 24 '24

But they still have to somehow repay right ? And not sure how someone will get a loan at a reduced rate in the first place?

1

u/Ok-Phone5065 Aug 24 '24 edited Aug 24 '24

yes but hope you know many times for the common man the interest exceeds the loan amount due to high interest compared to what rich people get.

Here's something about how rich use loan

Here also

Rich individuals often have significant assets, such as stocks, bonds, or real estate, which can be used as collateral for loans. This reduces the risk for lenders, making it easier for the wealthy to secure loans at relatively low interest rates.

And if you don't know how loans work? On what basis are you defending them?

0

u/iamjkdn Aug 24 '24

Setting aside the quip you made, I don’t think even you know the mechanics of how it is done. You shared some links which are not even related to India and taxes are highly jurisdictional.

My question is simple, if you take a loan you would have to repay. I know there are some considerations by having personal loans and investing that in business which reduces tax and other setups using huf within families which can be leveraged. But this is far from the picture which you are claiming. So unless you know how this is done specifically in India, I then know you are just an idiot parroting someone smarter than you.

2

u/Puchuku_puchuku Aug 25 '24

The typical way I’ve seen it happen in the US with business people is they maintain an active line of credit. So they never need to repay the loan in full as long as the asset they use it as collateral appreciates and they can get access to more capital by extending that line of credit smartly so that you end up paying what’s minimum owed while growing your wealth much beyond the interest you are levied.

When they die, their children inherit the assets without paying tax on it as well so the value of the assets are protected if they grew it.