Investment loans carry a number of risks, including:

  • The investment asset may not appreciate in value as you expect.
  • The investment asset may lose value.
  • You may not be able to afford the monthly repayments.
  • You may be forced to sell the investment asset at a loss.

Investment loans can be a good way to finance the purchase of an investment asset. However, it is important to weigh the benefits against the risks before you apply for an investment loan.