I want to buy a land. For that I need Rs. 15 lakhs loan. I will be able to repay the entire amount of loan in 4-5 years. I have heard that interest on personal loan is not compounded whereas this is the case with home loan. Should I take personal loan or home loan? What will you suggest?
Interest on both the loans is compounded. Personal loans are always costlier than home loans. Therefore, you should opt for home loan. If you are not going to construct anything on that land, you will not get home loan for it.