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You need to consider the interest rates that you will need to pay on the loan from the banks. Earning high returns on your investments won?t do any good if you have to hand a big chunk of it back to the bank. If the loan?s interest rate is more than half of the investment?s average return rate, you won?t be earning much money.
You also need to ensure you can afford to make the loan repayments given that your investments will not prove returns so quickly to finance the loan you have taken. This is particularly important if you have other loans to finance such as student loans or property loans.
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