It would be really helpful, if you guys share your opinion on this matter.
why father has the money and he spends on bad things but advises to the kids not to do the same? You will find your answer ,if you are sharp enough !
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Where have you seen wealthy people say to normal people not to take loan?
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taking loan is not bad. Taking loan smartly is the way to go…
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When we say “Why wealthy people take heavy loans…” we only see those people who have become wealthy by taking loans and 99.9% of them must have used the loan for productive purpose. Just like a coin which has two faces, there are similar number of people who took loans and have used it for consumption or for unproductive purpose and they have self destructed.
Loans are great, provided you are cautious and know your limits and upto what level you can go. I know a person who was a perpetual spender, the person just could not save one INR. Entire salary was going towards credit cards. After 10 years of working, the person did not have a single penny as savings. The expert advised him to take a loan and when the loan was approved, the entire amount, full amount was taken out by the expert and put in a FD in the spouse name. The person could not get a penny from it. However, every month deligently, the bank started taking the EMI and he got his salary after the EMI. He continued to spend this portion. When asked this technique is called forced saving by taking a loan, yes there is an interest cost which he had to bear but it was much better than spending it away. After 5 years, the family for the first time had a corpus and thereafter they continue to do this to build a corpus.
This is an extreme example for people who just cannot save even 100 INR from their salary. Think what you could do with loans if you know how and when to use. Loans can be used very effectively to build corpus. Think of a mortgage loan, if you are deligent, you will prepay, shift the debt from one bank to another if they offer lower rates and in the end you have a house in your name. This is possible only by way of loan.
At the same time, you can take loan and put it in stock market speculating that the price of stock may increase in the next month or so, but it does not and goes the other way and you self destruct and we come to know of those cases here by post saying “I lost 13 lacks etc”
At Corporate level, almost all corporates take bank debt for CAPEX and other productive purpose. Hence loans are good but it depends on who takes it and for what and the ability to repay from other source.
Before taking a loan ask these questions
- Is the loan for productive or un productive purpose - is it for creating an asset. We are not talking about emergency situation which is an exeption and you should take it whatever the case may be.
- Do you have the wherewhittal to comfortably repay the monthly installment.
- Do you have the means to continue to repay the EMI if you lose your job or any other asset to sell and settle the debt in full. The same question was asked in the extreme example cited above, the expert answered, the amount of loan taken is placed in FD and in case the borrower loses his job the FD will be closed and loan settled. Godsluck was with this person and continued to build his corpus and there was a marginal improvement in his spending habbit once he saw how savings was fun too than just spending and the amount of interest he was paying for his stupid behaviour.
Afterthought : You could do the same without taking a loan, just do a Recurring deposit, treat the emi as the RD installment. At the end of 5 years you will have a good corpus…
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Sounds like you have asked Kishor Biyani or Anil Ambani 
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You know that people who knows Biyanis, Damanis, Ambanis and Adanis will not be in this forum 
Except for Nithin maybe.
If you say that you have met George Soros, then I will be 
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Debt is good until it becomes toxic.
taking loan to build asset to escape taxes is the best way
money cash is only debt …
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1 crore may be heavy for you, for them it is peanut