InvestorQ : hey I need a loan of amount 30lakh and I am confused b/w too 1.should I sell my plot or 2.should I give my plot to the bank for a loan what do you think I should do and why
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hey I need a loan of amount 30lakh and I am confused b/w too 1.should I sell my plot or 2.should I give my plot to the bank for a loan what do you think I should do and why

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Sadaf Khan answered.
3 days ago
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See, there are several factors to this, and opinion could vary from person to person. The first thing I’m assuming is the plot you bought was for investment purposes, and you have another residential house. In that case, you should assess the increase in the value of your plot. Like if you have invested in it for five years, it should increase by at least 20-25% of its value as per circle rate. If you think you are having enough gain on selling the plot (consider the time value of money), then you can choose that option.

Now, if your plot is in an approved area, it would be easier for you to get the loan. The bank will keep your plot’s papers as security and a margin of about 30-35% between your plot’s value and loan amount. The plotted value considered here shall be as per the circle rate.

The bank charges interest on the loan, and you have to pay regular EMIs to pay off your loan. If you have a stable inflow of income, you can choose to take a loan instead of selling. Interest rates charged by the banks vary according to the nature of the loan say, it is lower for a home loan and business loan and higher if you take a personal loan.

I’m assuming the bank will charge you an interest rate somewhere between 11-12%, taking the higher interest rate, i.e., 12%. Let’s say the tenure of the loan to be 20 years. In that case, you will end up paying Rs 33,032 as EMI. You will pay total interest of Rs 49,27,820 over the loan tenure. So, your total cost would be Rs 79,27,820 (ignoring the time value of money) if you take the loan. In my opinion, selling your plot would be the best option as it would not call for any financial liabilities.


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K V RAO answered.
6 days ago
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You should avail loan from the bank by mortgaging your plot. That's because value of a plot keeps increasing over the years. This is however possible if you can bear the EMIs. If you default continuously, the bank will enforce the security that is your mortgaged plot. Enquire about the rate of interest. And find out other terms and tenure. Penalty for non repayment on due dates.

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