Taking Home Loan on Fixed Deposit please help me out?

POSTED BY Akshay Gour ON October 17, 2012 10:41 am ONE COMMENT

I am planning to buy a house with value worth Rs 70Lakhs.
I have a FD for 25 Lakhs to pay emi of house loan with union bank of india , should i take home loan over with FD?

I Have also 13lakhs fd in same bank also ?

Is taking a home loan on existing FD with the same bank better? On what factors does it depend?

But my salary is not able to take a home loan so you please tell me can i take a home loan against fd ?

One reply on this article “Taking Home Loan on Fixed Deposit please help me out?”

  1. Credexpert says:

    Dear Mr Gour,

    To answer your question – yes, in principle you can take a loan against your fixed deposit for buying your house.

    you have mentioned that your salary will not qualify you for a loan..so I figure that option is effectively closed.

    A loan against your fixed deposit will be at a higher rate of interest than what the deposit is earning you. And of course, you will have to pay it back, either through your earnings or by way of lump sum when the deposit matures, which could be in the next couple of years.

    If the cost of the house is Rs 70 lacs, the loan you will get against the two fixed deposits will leave a gap – I trust you have arranged for the balance requirement of funds. Please plan your cash flows, current and future carefully, so that you are not caught in a cash flow problem later.

    Unfortunately, in the absence of any other information, we are unable to advise you further, at this stage.



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