Compare rates, charges, disbursement time while choosing lender

Compare rates, charges, disbursement time while choosing lender

 

I am 50 years old and need a loan of `9 lakh for purchasing a new flat. It will be a construction linked loan and I want to take it from HDFC. Or should I approach another bank? The loan will be for 10 years. Please advise.

Since you want to avail a housing loan for 10 years, it matches with the requirements of the bankers and by the time you retire, you would have repaid the loan.

The bankers, while assessing your repayment capacity consider factors such as income, age, qualifications, number of dependants, spouse's income, assets, liabilities, stability, continuity of occupation and savings history, etc. While selecting a lender compare the rate of interest, charges levied by banks, time taken for disbursement, etc and then decide.

I took a `7 lakh home loan in 2007 with an EMI of `8,640 for a duration of 15 years. I also have an ongoing personal loan with an EMI of `4,251 with a duration of 4 years, of which 2 years are left. What can I do to stop my personal loan (as there is no tax benefit) and rather pay my home loan to get tax exemption. The only option I know is balance transfer, but the bank is saying I will have to purchase a different property only then they can do the balance transfer and I don't want to do that. What should I do?

I trust that you are so far regular in paying your instalments both for the housing loan and the personal loan. You have not indicated the rate of interest being charged on both loans. You need to consider switching the personal loan to a cheaper one so that your monthly outgo will be less. Instead of worrying about the tax benefit, if you can save on your outgo and invest the amount so saved, it will be beneficial. If you are funding the education of your brother, opt for an educational loan, which will be much cheaper Moreover, repayment of the educational loan will start only after your brother completes his education and gets a job. You can also explore whether you can get a loan from employees societies where interest rates are low.