Personal Loan VS Property Loan

POSTED BY Anuraj A ON October 16, 2012 11:07 pm ONE COMMENT

Hi Jagoinvestor Team,


I have been regularly reading the forums from last couple of months, you guys helped me out to get a direction in my financial life. As per your suggestions I have started Insurances and started investing in MFs. I have a question here.


Right now my Dad has a loan from a co-operative society which he took keeping our property as guarantee. The loan outstanding is 8.2 Lakhs as of now. The bank has increased the interest now to 15%. Currently the EMI is 10000 PM before the interest hike. I think the EMI will also rise in next few months. I am eligible for a personal loan with interest rate of 14.75% . I just want to know is this a good decision to take a personal loan and completely close the property loan.


I would like to know if I can substitute the Personal Loan with property Loan.

The advantage I find here is a slightly less interest and a more disciplined approach than what my Dad is doing currently.

I will even have the option to do partial payments (I may go abroad in a couple of months).



One reply on this article “Personal Loan VS Property Loan”

  1. In personal loans they dont encourage part payments mostly until you work for major corporates. If you will not incur any charge for prepayment of personal loan + the processing cost for new loan/costs for closure of old loan do not exceed the benefit by switching to personal loan by all means go ahead.

    However 0.25% may not make a much difference in the current scheme of things.

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