Hi Manish,
i felt using pf money is better for prepay home loan…
please let me know if it wrong…
simple math is –i get 8.5 % with pf…11% i lose with loan…
i feel 2.5 %interest i will get benifit…

Dear Aravind, please calculate on your own regarding the interest saving in Max Gain and positive compounding in EPF. Please share with me your findings.

Dear Arvind, in case of loan, it’s negative compounding as you ‘ll be paying less and less interest after each EMI. Whereas in EPF, it ‘ll be positive compounding as you ‘ll earn more and more interest after each pasing month. Take your pick.

Yes you are 100% correct, thats why if i calculate the things both are coming almost same.
what is better in practical? if possible please illustrate with example.

20%down payment i am doing from my money.Taking loan for rest of 80%.
Is it bettert to decrease the loan amount so that i pay less interest and less emi?

Dear Arvind, I’m out of India, so calling me ‘ll cost you a bomb on ISD. 🙂

Please mail on my personal mail ID in case you want to discuss it in detail.

thanks

Ashal

Hi Manish,

i felt using pf money is better for prepay home loan…

please let me know if it wrong…

simple math is –i get 8.5 % with pf…11% i lose with loan…

i feel 2.5 %interest i will get benifit…

can i have your contact number ..u can send to my email id….will call u..if u r ok…

Hi Arvind

Please raise your query on our forum – http://www.jagoinvestor.com/forum/

Dear Aravind, please calculate on your own regarding the interest saving in Max Gain and positive compounding in EPF. Please share with me your findings.

thanks

Ashal

Thanks for your info, but please rethink on it.

if i put the same pf amount as it is in SBI MAXGAIN

scheme i will be paying less interest ..if i get 12 % intrest outside i feel better using PF amount…your suggestions are welcome

Dear Aravind, please keep EPF intact. Avail home loan as per your needs.

thanks

Ashal

Dear Arvind, in case of loan, it’s negative compounding as you ‘ll be paying less and less interest after each EMI. Whereas in EPF, it ‘ll be positive compounding as you ‘ll earn more and more interest after each pasing month. Take your pick.

Thanks

Ashal

Yes you are 100% correct, thats why if i calculate the things both are coming almost same.

what is better in practical? if possible please illustrate with example.

20%down payment i am doing from my money.Taking loan for rest of 80%.

Is it bettert to decrease the loan amount so that i pay less interest and less emi?

Dear Aravind, why do you want to withdraw from EPF? Why are you not purchasing from own money or bank loan?

Thanks

Ashal