Build a Home – Doubts !

POSTED BY Krishna ON September 17, 2012 8:44 am COMMENTS (4)

Guys,

Please help me in deciding the loan amount whether to go for home loan for the full amount of the budget or only for the additional money required for constructing a house so that additional cash can be used only in case of emergency.

My Budget:Around 12 lakhs

Cash in Hand: 5 lakhs

 

Regards

Krishna

 

4 replies on this article “Build a Home – Doubts !”

  1. Krishna says:

    Hi Ashal,

    Thanks for the excellent suggestion. Will check on the SBI home loan offer and decide on it.

    Regards
    Krishna

  2. Krishna says:

    Hi Ashal,

    Thanks for the suggestion how about the Axis bank for the home loan I heard they have introduced a plan where an whole year emi will be exempted.

    Regards
    Krishna

    1. Dear Krishna, Yes the Axis bank’s home loan offer for last year’s EMI waiver looks good on paper but in actual it’s a market gimmick. To get that free EMI period, you w’d have to run your loan till the end of it’s term. Now calculate on your own, how much you w’d have paid already in terms of interest over these years & what ‘ll be the impact of last 12 EMIs? To simplify the matter for you, the interest you in your home loan is the highest in the initial years & after few years comes down to lower levels & at the fag end of the loan term, it’s as good as zero. So the bank has already earned from you what it meant to.

      Thanks

      Ashal

  3. Dear Krishna, even if your construction budget is 12L Rs. at best you ‘ll get not more than 10L Rs. loan. My personal take ‘ll be tyo go for maximum possible loan amount with SBI’s Max Gain home loan product.

    Thanks

    Ashal

Leave a Reply

Your email address will not be published. Required fields are marked *

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

Download Our FREE Ebook!

Available only for first 100 people today

Download Our FREE Ebook!

Available only for first 100 people today