Smart or Stupid move. Personal Loan at 11.88%

5 lakh jo bank deraha  he wo har mahine reduce hoga. pehley sal me hi bank tmse 1lakh 32k lejayega. mean 1 year bad Tamhra pas 362000 bachega. 5lakh nehi jo tm 5 sal tak  fd karaloge. 

is hisab se claculate kare toh you will get like 87k interest in fd. bank will take 169539 from you. 

Next suggestion from your friend: take a huge loan from the bank and acquire the same bank with that money.

Dude, in maths it looks great , but you forgot that, you have done FD of the amount that you have got from Bank.  now monthly payout you are getting 3752 but you monthly EMI you are paying 11072 .  so 11072-3752 = 7320, this much amount you are paying out of your pocket every month.
7320 *60 = 439,200

FD interest is fully taxable. Please exclude tax in your calculations

stupidity x infinite

maximum u will get 9.5% int. on fd with small banks, even less if opt for monthly payout, where as u have to pay 11.88 RR  interst to bank, its a loss loss situtn.

Your friends brain is not braining

This is called paying for banks considering the case below :

1. You have to pay 11072 from your pocket monthly then only you can get above stated results which may differ if you break your FD before tenure and may accrue 2% loss on all earned interest and your all plan will be disrupted.

2. You are taking monthly payout so no chance of getting 9.1 % intt. With DICGC banks. They don't offer that much.

3. You cannot use any amount out of  4.94 lakhs as this will again impact your calculations.

YOU CAN NOT USE ANY RUPEE FROM THAT INVESTMENT(4.95L) AND HAVE TO PAY 11072 Monthly for 5 years to earn 40000 - 60000 as per your calculation.

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Now let's find a solution on this ::

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You can create a RD account with any good DICGC approved and insured Bank and put 11072 your self in it monthly.

11072 x 60 =    6,64,320

5.5 % RD intt = 1,01,317

Total             --> 7,65,637

Friend or LIC Agent / Bank agent .. don't hide , give full information about the friend . 

Don't fall into trap. Simple calculation, without getting into too much details:

you take loan @ 11.88% for which you pay emi @ 11.88% (reducing balance concept)

you create fd @ 9.1%, for which you get returns @ 9.1% (reducing balance concept)

Considering you are not paying tax, you are loosing money @ 2.78% per year. Add any extra charges, gst etc. No one will give you anything for free.

what kind of calculation is this ?

Loan @ 11.88%

FD @ 9.1% 

There a clear difference, 2.78% more is to be paid for the loan. 

There's also a Tax factor which will create more loss. What are you seeing which I am not able to understand ?

taking loan for investment is a bad idea

First of all none of the bank will give you monthly interest credit at such high ROI even consider it for calculation purpose then also 

Emi =11000 u need to pay

Interest =3700  u will get 

So, you need more than 7300 every month from other source whose interest you are neglecting thus it looks profitable on paper but it is madness. 

Actually you will loose more than 3.5% after repayment 

Dumb People are taking loans for 24 or  even 30% from NBFCs , don't think much  if you really need the money

Chat gpt Calculated as profit of 1 lakh.. with 12% loan and 9 % compund gain on fd..

Isko 5 cr kar do to 5 saal me 1 cr. Xd

Business men always do business with loans..

memory corrupted, hard reboot required

Also after 5 years he will get the principal of 494781 back in FD

Simple calculation: you are paying 7300 per month and you will get 495000 after 5   years. It means a recurring deposit of 5 years earning 5% yearly interest.

Personal loan - when to take

1. When you have emergency need

2. When you are investing in buisness and there is a chance that you will earn more than emi monthly amount through that buisness.

3. If you want to take loan For any other purpose. You should have a guaranteed extra monthly income of emi equivalent amount to pay emis correctly and do not go into debt trap.

Gist of below Calculation.

If you have monthly extra amount of 11072 rs to pay emi for 5 years.

Rd method profit without taking loan = 132119 rs

Fd method with loan profit = 28750 + mental stress.

Rd method is best without taking loan.

Calculation about your plan

1. Emi = 11072 x 60 months

Interest in personal loan will be reducing rate of interest. So if you pay all 60 emis. Then after 5 years. Interest rate would be 7.1 percent. (176320/500000) = 35.3 percent / 5 years = 7.1 percent approx.

But if you foreclose in 1st year = it will be approx 11.8 percent.

2. So we will think you decided to pay 60 emis. Total interest rate will 7.1 percent in 5 years.

3. Coming to Fd. 9.1 percent is for senior citizen and for lesser duration.

4. Actual scenario is 8.25 percent for 5 years in suroyadaya bank. 

5. If there is no tax on fd interest. Then profit would be 8.25-7.1 = 1.15 percent x 5 x 500000 = 28750 rs in 5 years total

6. So profit is 28750 rs in loan - FD method. But .... Important point is .... You should be able to pay all emis from your pocket for all 60 months. .

 So you should have a guaranteed income more than 11072 rs per month for next 60 months to pay emis regularly from your pocket.

7. So we will think you have that guaranteed extra income of 11072 monthly to pay emi.

8. Since you have 11072 monthly extra income . Instead of taking loan. Keeping it in fd. Paying from your income.

Why not keep that 11072 x 60 months Recurring deposit at 7 percent interest for 5 years = your profit (interest) will be 132119

So if you have extra amount to pay emi . Don't take loan. Keep that amount in RD

which is the best bank for investing in FD and and if invest for 1 year and in case need to  withdraw early, what loss i have to incurr,Is there any minimum duration for making withdrawal prior to maturity?