Sounds reasonable but it is damn costly. Other NBFCs might also agree for a home loan at 9.5-10% but paying 2% more over the course of 20 years is a lot of money. On 1 crore loan, it is 2 lakhs per year or 40 lakhs or 40%.
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I asked this with Chat GPT and Google Gemini. Both of them say this is a sure shot ticket to ED. You will be charged for Round tripping, Money Laundering etc and will spend at least 7 years in jail. On top of that you will be marked as Fraud and wonāt get even a credit card for at least a decade. And hypothetically even if you donāt get into trouble with ED, banks willl immediately figure out that you own the company and its a Related Party Transaction and reject your application. You will end up spending a lot of money forming a company and eventually end up in same position.
Both the AIs agree with this and say going to Ombudsman wiÄŗ be useless and the ruling will be in bankās favour.
They are suggesting that a few smaller pvt banks quietly accept f&o trading as a source of income and provide loan. Either approach them or NBFCs. However in both cases youāll have to pay 1.5 to 2 percent extra interest than normal.
Another solution they are suggesting that if you are a HNI, approach the Wealth Management /Priority Banking Department of large pvt banks and open an account with them. Then ask them for a loan. These depts usually get waivers from Credit Dept which Retail Branches donāt. So they are likely to get your loan sanctioned.
Disclaimer - Everything stated above is said by AI. I have just translated it in my own words.
Reminds me of the quote - Absence of Evidence Is Not Evidence of Absence.
@Harshajyoti_Das FWIW, i wouldnāt look at the loan rejection as
a question of your ability to repay in a timely manner.
So, without knowing/evaluating your trading strategy,
the bank sees a worst-case of you being just one margin-call away
from being unable to pay your housing-loan EMIs!
Iām sure you will agree that after one receives a housing-loan at a relatively lower rate-of-interest than a personal loan, there is nothing stopping one from selling off all oneās debt-funds immediately, and spending oneās liquid cash holdings or investing them all into illiquid assets without regular income. i.e. no more regular income to pay EMIs.
In response, one may say that there is no guarantee that a salaried person
(with a job history >1 year, i.e. basically whom banks provide such housing loans to)
will continue to have a similar paying job in the near future.
Yet, banks offer such folks housing loans at the relatively lower interest rates.
The difference is these 2 cases is that typically banks have spent the time/effort and done the math on the likelihood of delays/default in the latter case, and have priced the loan interest accordingly.
Refusing a loan to someone with a different income stream
(or any other factor that is outside the limits of what a bank may have modeled),
is simply a matter of the bankās inability (or lack of motivation) to accurately price the risks involved.
i.e. the bank would place you in the higher risk bucket of the next closest scenario they have modeled, which will likely have higher interest-rates if the risks being modeled are higher, irrespective of the actual risk you might pose the bank.
To obtain a housing loan priced as accurately as possible close to the risk involved,
one immediate follow-up thought is -
Who is/are the lenders that might have already (or might be willing to quickly)
accurately model/evaluate your financial scenario?