House loan payment strategy

POSTED BY ram ON March 4, 2013 1:53 am COMMENTS (2)

I had some House loan of 11 Lakhs pending. Which strategy should i follow. 

1) If i pay approx 50K per month then the comming year i will get a interest of 1.1 Lakhs which will be tax exempt. And the next year it will be something about 50K interest and then loan will be over. 

2) If i pay only the minimum amount and the interest accomulate to 1.36Lakhs.  I will claim 1.36Lakhs as interest on house loan and claim some about 1Lakhs under 80C. and go on using the same amount of exemption on years to come. 

Should i go for investing in gold in the second case?

What option should i use to buy gold so that the jeweler cut is prevented. Safe way to invest in gold. 


2 replies on this article “House loan payment strategy”

  1. Credexpert says:

    Dear Ram,

    We would suggest that you pay approx Rs. 50,000 per month and close your loan as this would reduce your loan burden.

    However, if you are planning to opt for the 2nd option then in that case, Gold ETF would be an option to look upon.


  2. Dear Ram, do you feel, gold can provide you return better than any other asset class from here on wards after the impact of taxation?

    If you are comfortable for your choice of investing in gold, go for option 2. Else option 1 seems better. At least you know your input & outputs.

    For my own money I may opt to invest in Eq. from this surplus amount to earn better than my home loan interest.



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