Take a home Loan or not ?

81°
Deal Cadet
Indian_phoenix

I was planning to self finance my home . Now I am offered a home construction loan for a fixed rate of 8.55% . I considered the option option of putting 25L that i have in excess into an fd which offers 9.5% . Still it doesnt make any big difference as far as my calculation goes.

PS : I have NRI status and i don't take any benifit in tax reductions/deductions on loan . Interest earned on FD is tax exempted

Disclaimer
We are not SEBI/IRDA registered. The information provided herein is for education purposes only. We will not be responsible for any of your profit/loss with this channel's suggestions. Consult your financial advisor before making any decisions.
12 Comments  |  
5 Dimers
  • Sort By
Deal Lieutenant Deal Lieutenant
Link Copied

Getting a loan for construction is suggestible.

This is help you is preserving principal amount you kept in FD.

Try negotiating interest rates with PSB's or NBFC's. Ideal interest rate would be 8-8.5 % in your case at fixed rate and don't fall for floating.

Benevolent Benevolent
Link Copied
what's the downside in floating paji?
View 5 more replies
Deal Cadet Deal Cadet
Link Copied

which FD gives 9.5% ?

btw nri dont pay taxes on interest earned ?

Tech Guru Tech Guru
Link Copied

+1

View 3 more replies
replyuser
Click here to reply
Reply