The consequence is great risk. The funds borrowed by microfinance can only be used for personal daily consumption, and may not be used for non-daily consumption behaviors such as stock trading and investment. Investing in stocks with the money from this loan will be regarded as a violation of the loan contract. Weizhong Bank, which provides small loans, has the right to terminate the contract in advance according to the terms of the contract and allow users to repay immediately. At the same time, a penalty interest will be charged. Personal microfinance will also face the risk of being closed.

Due to the relevant regulatory provisions of the state, bank credit loans may not flow into the securities market in violation of regulations. If banks find that consumer loans are used for stock trading, they will immediately recover the loans. Users also need to immediately settle the remaining installment principal and installment fee. It may even enter the bank blacklist. If you borrow money in the future, the bank may not lend it to you. In fact, it is not only a small loan, but also the funds applied by various loan platforms. The loan funds cannot be used for stock trading.

We all know that the risk of stock trading itself is very high. Let's assume that your loan can be cashed in for stock trading. Let's analyze the rate of return and see if you can take risks.

The high risk of stock trading itself, coupled with the risk of loan interest and repayment period, is very dangerous. The average person can't afford the risk. Take the most dangerous situation as an example. If the stock market crash coincides with the repayment period of small loans, it will cause huge losses. At this time, people who need small loans are naturally unable to repay them. If the repayment is not timely, it will affect personal credit information. If you use loans overdue, it will definitely affect your personal credit record, and your loan application may be rejected in the future.

The daily interest rate of WeChat micro-loan used here is 0.05%, and the corresponding annual interest rate is 18.25%. In fact, the real interest rate is even higher than this, because small loans have to be repaid every month. In this way, the cost of capital is very high. If you borrow money and the return on investing in stocks is less than 20%, then you will lose money. Think about it. Can stock trading guarantee such a high return? At the same time, we have to bear double risks.

To sum up, it is illegal to use the money borrowed from small loans to buy stocks, and it is forbidden to operate. Personally, it is not recommended to borrow money for stock trading.