POSTED BY November 21, 2012 10:27 pm COMMENTS (2)ON
I have a question with respect to decision to be made on the way to go about re paying the three loan
Loan 1: 1L From Friend at 12% non compunding due in Jan 13 can pay just interest and close next year
Loan 2: 69K Gold Loan from Bank with 12% interest its compounded monthly based on pricipal balance
Loan 2: 1.47L Gold Loan from Bank with 12% interest its compounded monthly based on principal balance
Currently repaying the loan in below method
10K(5K in each gold loan) in Loan 2 &3.
5K in chit fund from which i will get around 85K in Jan 13.I will need to pay 5K until Jan 14.
What should i do with this 85K?
Pay of the friend loan 1?
If this then i will keep paying 10K in both gold loans and since its based on deceraing principal.
Pay of the Gold loan 1.Use remaining to pay friends Loan 1 interest?
Then i need to park the extra 5K in some RD to pay of the friend in jan14
I could not calculate the benifit of each method.
2021 © Jagoinvestor.com All Right Reserved
2 replies on this article “Loan payment process”
The problem is gold loan is based on decreasing principal.i.e if i pay 10K/month that will be deducted from principal and only the rest is calculated for interest.But friends loan is fixed i cant pay him on monthly basis and reduce the interest i have pay him in full
Why not pay the bank loans first ,friend loan can be paid later if he is ok with interest part only . once you clear that bank loan , you can then use the EMI saved from there to repay your friend loan .