Question: Today our FM announced 1% rebate on  home loan. I plan to go for a home loan of 14.4Lacs. Cost of the flat is 21 Lacs. Need your suggestion on how to utilize this.

                    
Answer: In case you have funds for the balance 32% of the loan then you may proceed accordingly by availing loan for Rs 14.4 lakhs. Otherwise, you may go for a higher amount of loan (without considering the rebate of 1%), in which case there will only be a slight increase in your EMI interest (for say, Rs 1,000 per month).

Warm Regards,

Expert @ InvestmentYogi