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Message: <blockquote data-quote="Sam Walton" data-source="post: 25185230" data-attributes="member: 566130">Well let me give u an example.6% interest rate vs 15% interest rate for 30 lak to be paid within 10 years. Your monthly payment (interest + capital) will be 33,000 for 6% and 48,000 for 15%.Image he can only afford 35,000/- per month as repayments. If the interest rate is 15% he cannot go for 30 lak. He will go for 20 lak.He will use that 20 lak and build a house with a cost of 20 lak. For that he purchases building materials and labour worth 20 lak.If the interest rate was at 6% he would have built a house with a cost of 30 lak. He would have purchased building materials and labour worth 30 lak.If the rate is 6% (not 15%), the difference of 10 lak goes to the material supplier, the men work there. Their demand will go up and so as the profit.. They will recruit many to cater the demand.. They will start new plants.. Plus the constructed house is much better..  That's the simple logic behind...yes Government has to build the infrastructure to facilitate businesses. so as the lower borrowing cost which encourage new investments and consumption. <img src="/styles/default/xenforo/smilies/default/happy.gif"  class="smilie" loading="lazy" alt=":)" title="Happy    :)" data-shortname=":)" /></blockquote>

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