Long-term economic growth is said to be between 8 and 10%/a, yet people get loans for houses at 3.5%/a and loans for random stuff at 5%/a. I kind of understand that people get loans for houses at rates lower than the growth rate of the entire economy in the long run because maybe houses are more stable in value than the stock market and banks are playing it close to the edge / there are regulations that state that banks may not use money they borrowed from their customers or the central bank to buy stocks or index funds.
But why do people get loans at low rates for random things where they don't even need to state a reason or for things that clearly depreciate quickly, like for example cars? An individual could play the long game and win by taking out loans at low rates and buying index funds from the borrowed money.
There even is extra ridiculous stuff I keep coming across like for example this offer where you actually pay less in interest than what they will give you as a bonus. Their rates even start at 2.9%.
My gut feeling tells me that it probably is a stupid idea to take out a loan unless you "need" one and that wanting to invest in the financial market is in no way "needing" a loan, but shouldn't banks themselves be playing the long game? Why are they enabling others to play the long game at a profit at their expense?