How to Make Money by Borrowing Money

This article will teach you how to make money by borrowing money fast. Of course, everyone wants to make money, and I will show just how to earn money as a borrower.

how to make money by borrowing money

Borrowing money does require courage before you approach someone to ask for money. Without attempting to borrow the money, it is not possible to earn it.

To borrow money, figure out why you need the money, the amount you expect, and approach the individual or institution to borrow the money.

Someone that knows they can make money from borrowing will solve their financial problems easily.

Under known circumstances, people borrow money to solve financial problems. And in this article, you will learn to borrow and make money.

How to Make Money by Borrowing Money

Below are steps to make money by borrowing money:

Search for Lenders

The first thing to do concerning how to make money by borrowing money is to shop for the lenders.

As a borrower, consider contacting multiple lenders. With multiple lenders, you will compare and discover the best option easily.

Each of the lenders would, of course, provide their terms, which would not be the same. When you gather the respective terms of the lenders, assess them, and opt for the lender with the best terms.

State Why You Need the Money Clearly

Do not make the mistake of appearing confused while providing reasons to the lender. Of course, a lender is not ready to fight you legally for the money.

So, before the day you make the request, outline your reasons for needing the loan.

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Agree on a Refund Date

When you borrow money to make money, you have to return, sometimes with interest. And if you borrow from a loved one, you may not pay back with interest.

Agree on a date you are certain to pay back comfortably. If necessary, ask to repay a certain amount monthly until you complete the loan.


Finally, you will invest the money because you cannot make money from borrowing money without exploring opportunities.

So, you need the best comforting business opportunities to invest in and get the borrowed money back.

Ways to Earn After Borrowing Money

In this section, I will list the top ways to make money from a loan.

Below are ways to earn after borrowing money:

Profitable Businesses

You can invest in a business that is not yours or your business. When the business is not yours, you do not control the outcome of the returns, and it is often risky.

For example, creating an investment-returns account with the bank guarantees returns but you do not control the investment.

Investing in a business is an alternative type of investment because it can’t be liquidated until it matures. So, it is recommended for investing borrowed money.

Short Term Investments

A typical short-term investment could double the money for a borrower if the investment:

  • Spans between 3 – 6 months
  • Has an interest rate of 5% at least
  • Is a typical low-risk investment
  • Guarantees returns

To get the best out of short-term investments, invest more of the borrowed money. Since short terms don’t give massive interests, the investment capital determines the returns.

Treasury Bill in Nigeria for instance offers up to 10% as the interest rate. With such an interest rate, investing millions from the money you borrow returns a hundred thousand interest.

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Real Estate Investments

A real estate investment is classified as an alternative investment. You simply buy a property and resell at a higher rate with the loan.

Below are options for real estate investment:

  • Land Flipping
  • Rentals
  • Property Development
  • Real Estate Broking

It is advisable to invest through real estate brokers if you are a beginner.

Land Flipping: If you intend to invest in land flipping individually, you are making a smart move. Use the money that you borrow to acquire a property, and resell for additional money.

Rentals: Rentals may not make quick returns for you to return the money you borrowed. But if there’s enough time, it’ll pay. I don’t recommend this real estate investment option because the duration of the money you borrow may not be long enough.

Property Development: Property development differs from land flipping somehow.

Here, you buy and develop a property, increase the worth of the property, and sell to intending buyers.

Virtual Savings

A leisurely and low-risk way to make money after borrowing money is to invest in virtual savings. It is a passive way of making money after borrowing money, and virtual savings have interest rates between 10% and 25%.

If you borrow from a bank, you could use that money to collect more money from their virtual savings.

Some banks and other certified institutions have virtual platforms where you can invest and garner returns. A virtual platform like ALAT by Wema guarantees a 10% interest rate and you will watch your savings grow daily.

Another virtual platform to make money from borrowed money is PayDay by ARM. It boasts up to a 15% of the interest rate per annum for an investment.

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High Yield Account

Banks operate high yield accounts with decent interest rates. After you borrow the money, find out the banks with the exciting interest rates, open an account with them, and invest the money you borrow.

What to Consider Before Borrowing

Before you borrow, consider these 3 things:

Outstanding Debts

Have you any outstanding debt? If ‘yes’, clear the debts. If you borrow to invest and clear old debt, fine but you may not have enough interests at the end of the investment.

Interest Rate

To invest with borrowed money, the interest rate must be convincing. Also, the level of risk of the investment must be less. If the risk is high, you may lose the collateral.


How early can you repay the money you borrow? Given this a thought? How about giving it a second thought? The inability to repay is why borrowers gather bad debts, which is not healthy for their finances.

You know, every lender demands that mortgage and you of course should decide on what to put out as a mortgage.

Clear Bad Debt

Bad credit is an outstanding poor refund history in your credit history. Clear bad debts with the following tips:

  • Rebuild your credit
  • Pay off small debts
  • Pay the bills on time

Final Thought

To borrow money to make money is a wise move if you have relevant intentions such as starting up a business, acquiring a home, etc.

Heard of Warren buffet? Well, he is rich after borrowing money. You could become the next Warren Buffet, borrow the money, invest, and pay back the lenders.