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Need advice on where to invest 8.75lakh for guaranteed high returns

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xywowowvw said:
Rbl signature debit card
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In rbl signature+ card, can we achieve 2% return on cc bill payment, considering we hit the 5lac yearly milestone?
ACC to my opinion, it should give 2% cashback overall, but then why would everyone promote the hdfc's easyshop platinum or millenia debit card, which gives 1% max only?
I am surprised here, am I missing any t&c or anything abt rbl debit card?
@Abhishek012 @D₹V @xywowowvw @thanix
 
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the_dark_knight said:
Hi,
I just took a personal loan on my Apay ICICI credit card, as it was a pre-approved loan offer on my card.
I didn't really require a loan for any purpose but just took the loan as it was offered at a low interest rate.
Loan amount: 8,75,000
Tenure: 1 year
Flat interest rate: 6.06%
There is no extra processing fee, however gst is applicable.
If you include all extra charges like GST, effectively the simple interest rate is 7% pa

So, need advice where i can park this amount for 1 year so that i can beat and even earn 3-4% extra over the spend interest of 7%.
One option is FD in small finane banks where interest rates are around 7-8% but i am not sure which bank provides the how much highest fd interet rate (1yr or little more tenree)
Kindly suggest any other investemnt product that can provide an almost guaranteed return with low risk in 1 year or so.....at around 9-10% returns

Also, since this loan emi will be billed in my credit card statement obly, so there is an opprtunity to earn 1% cashback extra on bill payment. But the 750 cashback limit on easyshop platinum debit card gets already exhausted per month from my regular cc bill payments. Please suggest any other methods to earn cashback on cc bill payment (around 77k emi billed per month)
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personal loan at 7% is unheard off
 
the_dark_knight said:
Mine was a reducing interest rate kinda loan only, and hence every month emi will be little different also interest amnt in every emi will decrease every month.
There is nothing like restructuring or choosing between flat and reducing rate.
When i said i took the loan at 7%, its basically means effectively it is at a flat interest rate of 7% , in total i paid to bank (principal + 7% on principal, by the end of 1 yr)
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I dont know how you calculate it, but Whenever I chose, I count it as per reduced rate only

You are considering flat rate after 1 year, but paying emi every month so what about lost interest if you have invested that amount ?

I took loans multiple times but its because I am using for my business where money comes at around 18% rate, but taking a loan and investing it in traditional sources (like FD and all) will never give you positive return (considering loss of interest on every paid EMI)
 
the_dark_knight said:
In rbl signature+ card, can we achieve 2% return on cc bill payment, considering we hit the 5lac yearly milestone?
ACC to my opinion, it should give 2% cashback overall, but then why would everyone promote the hdfc's easyshop platinum or millenia debit card, which gives 1% max only?
I am surprised here, am I missing any t&c or anything abt rbl debit card?
@Abhishek012 @D₹V @xywowowvw @thanix
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i think it gives 2% in the form of vouchers
hdfc dc gives 750 cashback
 
D7162 said:
He will pay on outstanding only, what I understand is, ICICI offered some low rate and op calculated it manually for span of one year
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nope
he said fixed interest rate is on total money borrowed
not on outstanding amount thats why the interest rate is low
but if you calculate it on a outstanding basis it turns out to be 11%
why would any bank loan funds at 6%
this is not covid
 
sm9811911 said:
bank can keep terms like these for loans. Infact there are many terms like this. Else, they can cancel loan etc

But dont think they exactly follow up to check for these type of loans. Plus people can rotate to do what they like.
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if they cancel the loan there wont be any foreclosure charges
also these are miniscule amounts to impact the market but i see how this can impact if this gets bigger
 
sm9811911 said:
net interest rate is ~14% to ~16% depending on other terms. 7% is on non-reducing balance.

Breakeven earnings required is ~20% pre tax assuming 30% bracket.
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How would my breakeven earnings should be around 20%?
I guess there is a gap in understanding
At the end of the year, when I am done paying all emis and every penny to the bank and the loan is closed, I would have paid bank an extra amount of around 66k (confirmed by bank) on the borrowed loan amount. Now do your calculations
 
the_dark_knight said:
How would my breakeven earnings should be around 20%?
I guess there is a gap in understanding
At the end of the year, when I am done paying all emis and every penny to the bank and the loan is closed, I would have paid bank an extra amount of around 66k (confirmed by bank) on the borrowed loan amount. Now do your calculations
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dont invest in your name
invest in your father or mothers name
your breakeven cost after tax would come down to 13-15% approximately
 
xywowowvw said:
i think it gives 2% in the form of vouchers
hdfc dc gives 750 cashback
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Yeah vouchers u can consider equivalent to cashback only here as there are lot of brand options to redeem including Amazon...
Also, the capping is till 1 lac spend every month (1k voucher) so that's fair too...
And no restrictions on any platforms/txn categories etc
I wonder why not people suggest this debit card ahead of hdfc's one.
I see hdfc being beneficial only in scenario when either your monthly cc bills are.too less (<10k). But the anyway you are not making significant profit via cc or paying their bills
 
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