What grows even at night?

Mother: Chinmay, I heard that Government will be announcing a new scheme to take loans at a very nominal interest rate.

Me: So?

Mother: I wanted to check if you know anything about it?

Me: Where did you hear about it? Was it someone from the WhatsApp university?

Mother: (with a low voice) yes.

Me: Ma, even if it is true what do you want to do with it?

Mother: I was thinking if we get the money then we can grow some cash crops.

Me: Do you know what exactly are you going to grow?

Mother: no.

Me: do you know to whom or where will you be selling it?

Mother: not yet.

Me: hmm… you have heard of Akbar & Birbal tales right?

Mother: Yes. In fact, I have read many moral stories to you when you were in school.

(Akbar & Birbal are two characters in a folktale that are used to teach important moral lessons using funny stories. Akbar is the emperor and Birbal is his witty & wise minister)

Me: let me share an incident of Akbar & Birbal,

One day Akbar asked Birbal, “Birbal, is there anything that grows even at night?”

For that Birbal replied, “Yes, my king, the interest on the loan grows even at night!”

Mother: smart answer!

Me: I know!

Ma, if we are not clear on how we are going to use the borrowed money to ensure it will generate a return more than it is costing us then the only thing that will always grow is the interest on the loan.

It does not matter if there is Covid or lockdown or public holiday or weekends, it grows 24 hrs X 365 days in a year!


Any money borrowed gets recorded on the balance sheet under ‘liabilities’. The word itself is saying, it is a liability. We are liable to pay it back with the agreed interest/returns.

Do you know the liabilities for your business and family?

How much is it growing every night?

Have you invested the borrowed money in such a way that they are generating a return more than the cost of liabilities?

Are your investments generating returns or are they not/non-performing?

“The first chance you have to avoid a loss from a foolish loan is by refusing to make it; there is no second chance.” – Charlie Munger

#financemanagement #bottomline #financeacademy #loans #businessloans #borrowings #returns