SHOULD I TAKE LOAN

[Gunn]

i can have a loan at 8.7 percent , with no charges , should i take the loan and invest the money in NSC pls koi compare karke bata do

 

[akash90]

Hi

Which loan you want to take? Is it personal loan?

 

[Mohit kharb]

Hi, Gunn
I think it is not right decision to invest in NSC with loan amount.

Here I give you example with 5 lakh amount loan for 5 years.

If you take 5 lakh loan at 8.7 % you have to pay Rs 10300 as EMI per month and Rs 118400 as interest in 5 years.

If You invest this 5 lakh amount in NSC at current interest rate of 7.7 % you will earn interest of Rs 224500.

As compare both example you get Rs 106000 more but consider that You have to pay EMI per month and you get NSC maturity after 5 years.

Please check the exmple in the image attached.

 

[Gunn]

i think i can do it

 

[Mohit kharb]

i think i can do it

If you can do easly than there is no issue.

 

[shashwat]

Make sure you account for processing fees and any other charges. Don't check the interest rate, check the APR (which is interest rate including proc fee and other charges). If it's still better, then your decision, you can go ahead.