Should I take a Loan against Fixed Deposit to buy a Flat ?

POSTED BY narbhavi76 ON December 27, 2013 12:41 am COMMENTS (5)

Dear Gurus,

I have around 40 lakhs Fixed deposit and getting monthly interest. I would like to buy a flat which is cost 35 lakhs including stamp duty. Instead of paying lumpsum of 34 lakhs, is it good idea to borrow a loan against my FD, and pay the interest from my interest.

I am retired scenario citizen, you advise will be more valuable to me.

The banker is ready to give Loan against my FD.

Kind regards

5 replies on this article “Should I take a Loan against Fixed Deposit to buy a Flat ?”

  1. ashalanshu says:

    Dear Narbhavi, from your reply – I want to secure the future of my son – Please dilute the FDs and purchase the flat.



  2. Basavareddy says:

    Dear Narbhavi.

    If u have any other source of income for paying EMI.? Dont look at only the intrest portion, what about pricipal amount u need to pay every month..?


    1. narbhavi76 says:

      Hi Basavareddy,

      The interest I get is on monthly basis, but my loan will be spread for next 15 years along with principal and Interest. So the repaying amount will be more or less equal to my interest against FD. This is were I would like to get advise.

  3. ashalanshu says:

    Dear Narbhavi, if you are a retired person, why do you want to purchase this flat in the first place?



    1. narbhavi76 says:


      Its my personal wish to buy a flat, all these days we were in rented house. I have my son but he is not in good position to buy a flat, so its only me to buy house and atleaset to secure his future.


      Please tell me the solution instead of asking questions.

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