Hi, I need your advice. I am a 29 old guy living near Kolkata. I am working in a private co. and my monthly salary is 50k. I have a savings of 5 lac. Now I want to buy an appartment near my place. The price for a 900 sq ft appartment is 7 lac. I am confused how should I pay for the price. I can pay 7 lac in cash now but I don't want to empty my savings fully. Will it be wise to take a loan from a bank and pay monthly instalments? Or, half of that amount I pay from my savings and rest from a bank loan? Please advice me about the better option. How much is the rate of interest for housing loans and what could be the minimum monthly instalment I need to pay?
RE:Which way would be the better?
by Shashi Ranjan on Mar 21, 2008 06:08 PM Permalink
It's a trap....don't go for any loans. True that you will get rebate in tax, but ur intereset rate will be very high...
RE:Which way would be the better?
by ausi ka baap on Mar 09, 2008 02:48 PM Permalink
may b, taking a bank loan wud b a better idea esp when repayment of bank loan and interest thereon wud get u deduction from ur total income for i.t. purpose!
RE:Which way would be the better?
by JAYAPRAKASH SAHOO on Mar 18, 2008 12:16 PM Permalink
Make sure If you are going for Hosuing Loan tax Rebate . You may not claim for HRA Exemption. Find out which one is more. I am sure you HRA will be more considering only 7 lakhs you are going for loan
RE:Which way would be the better?
by amit mittal on Mar 10, 2008 12:56 PM Permalink
Go for SBI ... its has got few good options . you can also check ICICI...
RE:Which way would be the better?
by Subhash Ram on Mar 16, 2008 07:04 PM Permalink
Hello Pradipta, I think u sud opt for getting a bank loan for buying the apratment. U may be paying an interst abt 11%. U will get a lot benifit in income tax deduction or this which eventually reduce ur burden. U can put ur savings in good bank fixed deposite & other instruments (like mutual fund, equity etc.) as per ur convenience. A bank fd will earn u around 9%. So, difference interest between ur loan & fd will be around 2% which will be cover up with ur income tax benifit. For getting loan, u can discuss with all leading financial institution - ICICI bank, HDFC, HDFC bank, LICHF, SBI etc. & choose from the best one for u.
