Should I take home loan or pay on my own

[samkapoor77]

I am purchasing flat whose construction will complete in 2.5 or 3 years. I have the capability to meet entire cost of flat from my pocket. Should I opt for home loan from ICICI Bank? Will tax savings be more than the interest paid on loan?

[samkapoor77]

Since the possession is 3 years away, for that period your tax savings on interest payments will be restricted to Rs. 30,000. If you take a loan, calculate the interest payments in a year. Deposit the available money in FD. Compare tax savings with the difference in interest payments and receipts then take decision.

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