USA How to benefit from low interest borrowing and high interest lending

[jimcorb]

Sorry Folks an engineer stuck up here. I'm an expat and can draw personal loan on Monthly instalment repayment plan in X X country at 2.5 %. I plan to then fix deposit it in YY country at 9% per annum. How can I make this zero sum game for me? I mean for example if I borrow half million ($500,000) then how do I plan to split the amount for different Fixed deposits so that I can mange my monthly repayments without adding extra burden on my monthly budget?

Any advise???

 

[kirby]

Finding high interest rates in other countries is no big deal. Based on listed rates you can borrow at low rates and invest at much higher rates anytime.

What is missing is your assessment of the RISK. Do the laws in that foreign country provide deposit insurance? Has it been tested? If you don't get paid back how do you collect? Lawsuit? Using foreign lawyers? Do you have to appear personally? If you planned to use the interest receipts to pay your interest debt what if the receipts are held up for some reason? Instability in the country? And what will you use meanwhile to pay debt service on your loan?
Just want you to be aware this is no slam dunk ...Lots of homework to do for you...