I want 4 lakhs total, out of which I want 1.6 lakh now and the rest later. I have three options:
1) Take 1 lakh now from the housing loan as there my 1 lakh is pending, which I have not taken at that time.
2) PF loan
3) The company is offering a loan at 12.75%.
Now, which option is better and causes me less burden? Kindly advise me for 1.6 lakh now and the rest 2.4 lakhs in 6 months.
From India, Visakhapatnam
Acknowledge(0)
Amend(0)
1) Take 1 lakh now from the housing loan as there my 1 lakh is pending, which I have not taken at that time.
2) PF loan
3) The company is offering a loan at 12.75%.
Now, which option is better and causes me less burden? Kindly advise me for 1.6 lakh now and the rest 2.4 lakhs in 6 months.
From India, Visakhapatnam
Acknowledge(0)Amend(0)
Dear Friend,
My suggestion is, if you have a good PF accumulation balance, kindly withdraw the total amount from the PF. Because you are getting interest on PF at 8.5% per year. However, if you take a home loan, apart from the initial and other procedural charges, you will have to spend 2 to 3% of the loan requested, and the interest on home loans ranges from 12% to 16.5%.
Another option is to opt for a bank home loan, where if your income tax assessment shows that your home loan payment with interest together is up to Rs.1,00,000/-, it is exempted from income tax.
The third option is to go for a company loan, but bear in mind that any time you consider leaving the company to join elsewhere, you must first settle your loan before moving on. This option carries more risk.
The choice among these options depends on your current situation.
With Regards,
C. Renuka
From India, Madras
Acknowledge(0)Amend(0)
2My suggestion is, if you have a good PF accumulation balance, kindly withdraw the total amount from the PF. Because you are getting interest on PF at 8.5% per year. However, if you take a home loan, apart from the initial and other procedural charges, you will have to spend 2 to 3% of the loan requested, and the interest on home loans ranges from 12% to 16.5%.
Another option is to opt for a bank home loan, where if your income tax assessment shows that your home loan payment with interest together is up to Rs.1,00,000/-, it is exempted from income tax.
The third option is to go for a company loan, but bear in mind that any time you consider leaving the company to join elsewhere, you must first settle your loan before moving on. This option carries more risk.
The choice among these options depends on your current situation.
With Regards,
C. Renuka
From India, Madras
Acknowledge(0)Amend(0)
Dear All,
I do agree with Ms. Renuka. Moreover, you need not repay anything to EPFO because it is not a loan; actually, it is an advance. Hence, your take-home salary will not be affected. Do some homework before making a decision.
All the best,
S. Sethupathy
Excellent HR Services
From India, Coimbatore
Acknowledge(0)Amend(0)
I do agree with Ms. Renuka. Moreover, you need not repay anything to EPFO because it is not a loan; actually, it is an advance. Hence, your take-home salary will not be affected. Do some homework before making a decision.
All the best,
S. Sethupathy
Excellent HR Services
From India, Coimbatore
Acknowledge(0)Amend(0)Looking for something specific? - Join & Be Part Of Our Community and get connected with the right people who can help. Our AI-powered platform provides real-time fact-checking, peer-reviewed insights, and a vast historical knowledge base to support your search.