Never,

I repeat never ever take any loans from any banks neither borrow from friends or someone else for stock market.

People came here to earn a profit only but they have to accept that profit and loss is a part of the stock market. One day they earn profit another day they might earn loss as well. So if you are trading with some one else’s money and if you loss how you supposed to pay them back with interest?? so never ever borrow a money from anyone for trading.

If you really interested in trading or investing do some minor savings first and with that start small but with the proper strategy or under someone’s guidance only. Other wise you will be in a big trouble. I have seen many cases where people attempt suicides after lost everything in this as they are not in the position to repay it.

“Stock market is like an ocean so never jump into it if you don’t know how to swim.”

There are several risks of taking personal loan to invest in equity market which are as follows:

• There is no surety that money can be made in stock market as I said profit and loss is a part of stock market. Returns might be negative and can erase the value of your investment. Further, the burden of paying interest on this personal loan can be detrimental.
• The interest rate on the loan you took could increase. If interest rates rise by 2-3 percent, chances are that your investments may not be sufficient to cover the additional expense. You may have to rejig your budget to pay the EMIs.”
• Have you invested money in some small-cap/penny stocks which turned liquid and not traded on the exchange? Concentration risk is investing only in 1 stock, which may under perform after you have invested. It may continue to under perform if the near term outlook from analysts is poor."
• An investor can’t time the market and enter to make quick profits. There is high probability of mismatch between tenure of this personal loan and returns expected from investment. “If the market crashes, an investor may not have sufficient time before which he/she can recover the losses to even pay back the principal of the personal loan.”

Hope this will helps you take a better decisions.

All the best