An Indian walks into a bank in New York City and asks for the loan officer. He tells the loan officer that he is going to Italy on business for two weeks and needs to borrow $5,000.
The bank officer tells him that the bank will need some form of security for the loan, so the Indian hands over the keys to a new Ferrari.
The car is parked on the street in front of the bank. The Indian produces the title and everything checks out. The loan officer agrees to accept the car as collateral for the loan.
The bank’s president and its officers all enjoy a good laugh at the Indian for using a $250,000 Ferrari as collateral against a $5,000 loan.
An employee of the bank then drives the Ferrari into the bank’s underground garage and parks it there.
Two weeks later, the Indian returns, repays the $5,000 and the interest, which comes to $15.41. The loan officer says, “Sir, we are very happy to have had your business, and this transaction has worked out very nicely, but we are a little puzzled.
While you were away, we checked you out and found that you are a multimillionaire. What puzzles us is, why would you bother to borrow $5,000?”
The Smart Indian replies: “Where else in New York City can I park my Ferrari for two weeks for only $15.41 and expect it to be there when I return?