Loan of 800k to pay back 1.2M in a space of 4yrs.

Is it worth it?

I think its OK. Who's giving, individual or a bank?

ayo_kenny37: Loan of 800k to pay back 1.2M in a space of 4yrs.

Is it worth it?

depends on what the loan is for?

Well its from a bank. D only colateral is d salary act I have wif dem

The purpose is to complete a building project

Hmm, very dicey and risky ... Cause God forbid anything can happen with d salary acct.. No one is too sure about sustaining jobs for too long, especially in nija. And what yur investing the 800k on is a stationary building,possibly a new home? Let's assume,it's invested in completing a shopping mall, or blocks of office space, or flats to rent out , after building? Then yeah.. It's ok, even the completion and renting out will be within a year.. Pay the bank it's loan and keep the remaining profits.. But for a home to stay with just u and family? ...nah?..no no no.... Very risky... Won't try it all!
So the bank won't collect the building and land if the loan is nt completely paid back.

victorian: Hmm, very dicey and risky ... Cause God forbid anything can happen with d salary acct.. No one is too sure about sustaining jobs for too long, especially in nija. And what yur investing the 800k on is a stationary building,possibly a new home? Let's assume,it's invested in completing a shopping mall, or blocks of office space, or flats to rent out , after building? Then yeah.. It's ok, even the completion and renting out will be within a year.. Pay the bank it's loan and keep the remaining profits.. But for a home to stay with just u and family? ...nah?..no no no.... Very risky... Won't try it all!
So the bank won't collect the building and land if the loan is nt completely paid back.

do you have to build now?

Am not the one building... Just saying my own two cents of advise on the poster , planning to take a loan of 800k, but paying bk 1.2milla in 4yrs.

victorian: Am not the one building... Just saying my own two cents of advise on the poster , planning to take a loan of 800k, but paying bk 1.2milla in 4yrs.

sorry, i meant to direct the question to the OP.

Ok.

Personally i will not encourage it. Why dont you instead go to the bank, make them to deduct 50,000 from your salary which i believe might be more than 100,000/month, for 12months which gives you 600,000 . And on top of that they will pay you interest too. And that calls for serious adjustment for this period of 12months.

Personally, i wont encourage it.

Dont they do monthly contributions in your place of work.....if they do, you can join one, they normally roll paper to know which month you will collect money, but you can be given preference, thereby, giving you d first or d second slot.........no interest paid, no collateral.
However, some factors are considered b4 joining one, like, d members involved.........d pple in such a group must all have integrity, so that, there will not be room for betrayal. Secondly, d group will be better if salary earners are involved and d monthly contributions is deducted from d source to d account where it will be paid to whoever is due to collect money.

Nigeria get as e be, but with proper planning, one will not be left behind.
May God help us all.

Everyone is discouraging the op but the truth is that's what most Nigerian civil servants do.
They live on loans and mortgage their salary..
How much do y'all think the op earns?
You think if he can afford to save N800,000 ,he wouldn't?
...and even if he was borrowing the money for business,what's the certainty that it'd thrive and yield especially in this non-business friendly country?

Op,do what you have to do.I really do not think its a bad deal and its flexible enough..
All the best!!

Pls note that 8ook can never carry out a complete building work, invest on what will finance your building work first...pls dont be desperate to be a landlord, carrying out a very low building construction...If u can collect the loan and liquidate within a year is the best.