7 replies on this article “Shall I opt for Personal loan or Home Loan to buy a piece of land for 12 lacs ?”

1. ashalanshu says:

   February 1, 2014 at 5:23 pm

   Dear Subrata, interest is compounded in both loans, be it personal or home.

   Home loan term depends upon the institution you are going to deal with. the maximum term can be 30Y.

   Although impact ‘ll be lower but still 13% in 5Y ‘ll have an impact on your financial position than 10.5% in the same time frame.

   Well, some times it’s advisable to let the loan continue and invest the surplus money elsewhere.

   Thanks

   Ashal

   Reply
   1. subratabera says:

      February 2, 2014 at 8:14 pm

      Thanks a lot Ashal. That clears a lot of doubts for me.

      Reply
2. subratabera says:

   February 1, 2014 at 4:37 pm

   Thanks a lot friends for answering my question. I’m buying this for investment purpose. I’ve few more doubts.

   1) I’ve heard interest on personal loan won’t be compunded. Is it true?
   2) Can I get home loan only for 5 years?
   3) Is difference of 2-3% interest rate matter over short duration? I am assuming interest rate of 13% on personal loan and 10.5% on home loan.
   4) Isn’t it a good idea to pay the loan quickly with less interest outgoing?

   Thanks,
   SB.

   Reply
3. rahul123 says:

   January 28, 2014 at 10:43 pm

   Dear SB,

   What is the rate of interest you are getting on personal loan?

   Thanks,
   Rahul

   Reply
4. Credexpert says:

   January 28, 2014 at 8:06 pm

   Dear Subratabera,

   The interest rate on Personal loan is much higher as compared to a Home loan. Besides, Rs. 12 lac is not a small amount and given the tenure of 3-5 years you should opt for a Home loan.

   You could use a simple EMI calculator which will help you understand your monthly cash outflow in form of EMIs. Ensure that you analyse your cash inflows before availing an additional loan – irrespective of its type i.e. Home loan or Personal loan.

   Regards,
   Credexpert
   http://www.credexpert.in

   Reply
5. divya.advisor says:

   January 28, 2014 at 7:51 pm

   I am not aware of a personal loan that is cheaper than the home loan rates. So unless you are able to get a cheaper rates for personal loan it makes no sense to buy on personal loan.
   Remember to factor in the 1.5 Lakh exemption on interest if you buy to build a house on that property.

   Reply
6. jyoti. says:

   January 28, 2014 at 7:11 pm

   Is this for investment purpose or you are going to build house over their. Reason being is as much as I know you can’t get home loan against land. Or correct me if I am wrong.

   Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.