About Part Repayment

[AlertsByVivek]

I bought under construction flat and possession is 2026.

I took 20L loan sanctioned from HDFC at 8.5% for 10 Year.
Now 5 L disbursement as per builder demand.

I have money 1 lac to repay now.
Whom should I pay ? Direct to builder or Bank.

Which one will benefit me more ?

 

[luciferocious]

i think it would be better to prepay your loan if builder is not going demand more money for few months.

I am no expert FYI

 

[AlertsByVivek]

i think it would be better to prepay your loan if builder is not going demand more money for few months.

I am no expert FYI

Just now I have recieved the demand for 1.77 Lac.

But I always take 1-2 month delay to disburse

 

[Devine Soul]

I bought under construction flat and possession is 2026.

I took 20L loan sanctioned from HDFC at 8.5% for 10 Year.
Now 5 L disbursement as per builder demand.

I have money 1 lac to repay now.
Whom should I pay ? Direct to builder or Bank.

Which one will benefit me more ?

Yes you should pay to bank so that the principle amount reduced and hence the interest also

 

[anuragmukherjee28]

Just now I have recieved the demand for 1.77 Lac.

But I always take 1-2 month delay to disburse

you should pay it to the bank as it will help you to reduce your principal loan amount , thus the interest

 

[AlertsByVivek]

you should pay it to the bank as it will help you to reduce your principal loan amount , thus the interest

Principal of the loan anyways will be less. If I given the amt to builder or Bank.
If I give this money to builder then he will ask to disburse less.

Any tax benefit?

 

[Chitra Thakre]

Nees to decide based on what the payment schedule is and how your future cash flows look. Assuming no delays in construction and possession in 2026, I think you would be best of paying this to builder. In this case, if you pay this amount to builder you don't have to take equivalent amount from your loan corpus.
Otherwise, if you pay to bank, then for the next disbursement you have to take it from your loan corpus only.
Hence, pay it to builder to keep it easy.

 

[AlertsByVivek]

Nees to decide based on what the payment schedule is and how your future cash flows look. Assuming no delays in construction and possession in 2026, I think you would be best of paying this to builder. In this case, if you pay this amount to builder you don't have to take equivalent amount from your loan corpus.
Otherwise, if you pay to bank, then for the next disbursement you have to take it from your loan corpus only.
Hence, pay it to builder to keep it easy.

Thank you for the response.
Yes I am also thinking the same. Coz I don't need much loan. As possession could be delayed demand will be late. So I can easily accumulate the demand money in the future.

 

[Kalyan]

I bought under construction flat and possession is 2026.

I took 20L loan sanctioned from HDFC at 8.5% for 10 Year.
Now 5 L disbursement as per builder demand.

I have money 1 lac to repay now.
Whom should I pay ? Direct to builder or Bank.

Which one will benefit me more ?

Incase you have opted for pre emi then it would be better to pay to the builder so that the bank disbursement will be lesser and your interest payment will also be less.