Should gold loan be used to pay Housing loan.

POSTED BY Ritesh ON June 21, 2013 7:51 pm COMMENTS (2)

I am taking a housing loan for 25 lacs ,but i am in a dilemma .should i take a gold loan to reduce the liability of serving a big housing loan of 25 lacs .as i will be paying high intersts in my intial emi for housing loan  .where as the gold loan will be based on reducing balance  and can be repaid faster depending upon the monthly surplus.

so what is advisable please suggest

2 replies on this article “Should gold loan be used to pay Housing loan.”

  1. Also you have not looked at home loan tax saving benefits which would be a good thing for you

  2. getting a loan to invest and getting a loan to service another loan is a terrible terrible idea. Gold loan interest rates are pretty steep.

    If your emi is too steep sell some gold and pay off some portion of the loan.
    pre-pay the loan in small chunks each year.

    If you are thinking about taking a gold loan then does it mean you can afford the emi + gold loan interest + expenses on your income?

    Why not simply let the home loan run pre-pay in chunks and focus on investing for long term goals?

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