I just got approved for a personal uncollateralized loan (This is NOT a small business loan or a car loan) and the reason I gave them for why I was taking out the loan is completely resolved so I no longer need the money for that. However, I would still like to take out the loan to invest in the stock market. Should I tell them that or does the reason for the loan not even matter. I do not want to be committing fraud or anything like that. And please do not give me a lecture about how it is dumb to invest with borrowed money. Thanks
Worst case scenario is if I lose ALL of the money which is highly unlikely since I am not trading derivatives I will still be able to make the monthly payment since I have a job. I would not just default on the loan if I lost everything. A Personal uncollateralized Loan is literally just a loan that is based on what the bank determines is the borrowers ability to pay back the money (which is based on credit score, income, etc) So if they think I am able to pay back the loan then what do they care what I do with the money? Also some of the pre filled in reasons on the application were "Major Purchase", and "Vacation". A vacation is literally just throwing money down the drain with nothing to show for it in the end so I figure investing would be considered safer than that.