Hi,

I am in the verge of signing a home loan aggreement with SBI for 27 lakhs @ 10.05%p.a. under SBI Maxi-gain. With the current Interest rate scenario would it be benefitial to go for a 15 year tenure or a 20 year tenure.

At the current ROI my EMI would be 29,097 for 180 months and would increase to 29,512 if the ROI goes up to 10.3% p.a. But if I choose for 240 months, then I get an EMI of 26,595 @ 10.3%p.a. considering RBI would increase the base rates from here on.

My question is if I can invest the difference ~ Rs.3000 in an RD and get around 37000 and repay the principal. I am totally confused which way to go and I am signing the deal on 25th, any help/calrity extended would be very helpful.