Personal loan : How it can be profitable

Basically, personal loan will be charged with some percent of interest based on total amount. Different financial organisation will have different charges amount to customer, but legal organisation have to refer national guidelines controlled by National Bank. If we are aware that interest charges is different between private sector compare to government sector's employees. Its due the repayment risk cost that they have included in ensure the financial aid given still give profit to them as business entity.

Then, the question is how the debt can give us money while in conventionally theory, we are lossing in term of interest charges need to pay as stated in agreement. Then, its a concept of "good debt" that promoted by financial practitioner. 

"Good debt" is any debt that will give return more than the cost that we need to pay. For example, a loan of $100k with interest 4% per annum is considered good debt if invest in a portfolio that will given with dividend more than 4% received. It's easy and very simple theory on how loan can make money.

Its same goes to another portfolio of investment including properties, precious metals etc.