I have taken 30,71,000 home loan from SBI for a tenure of 20 years. Interest rate is 8 % 1st year, 9% for 2nd and 3rd year and then floating. SBI has included 18 months of Moratorium period since property will be ready by then, and they will charge only interest part and not principal during this period. Now builder is demanding me to avail ADF facility with SBI. I feel that ADF is not good for me because even on face I am paying extra with Moratorium option, if I invest balance part of EMI for a period of 20 years with average 10 % yearly return that would fill the extra amount I am paying. And second advantage is that I can keep check on builder for work completion to my satisfaction.
Can you please help me decide on which option to choose ADF or Moratorium period?Thanks in advance for your time and help.