is it ok to take staff homeloan facility at 7% simole interest

[faithandhope10]

I am currently working in public sector bank. It provides homeloan facility at 7% simple interest. I am planning to buy a house for renting purposes. It is right decision or not.

 

[shongy19]

@faithandhope10 If you need to take a home loan, given current market rates - 7% would be amazing.

Question is - what is your alternative? You need to give more information

 

[faithandhope10]

@shongy19 Not alternative my emi would be around 35-40k per month for a loan of 80lakh .I consider 20000 rent per month then I have to pay only 20000 from my pocket.

 

[johnsubira]

@faithandhope10 That sounds like a deal especially because in 10 years rent would account for entire EMI

 

[shongy19]

@faithandhope10 Home loan interest = 7%
Rent value (usually) = 3% on high side before maintenance and property tax

You’re still going to end up bleeding 4-5% on a monthly basis assuming you find renters immediately.

If you’re thinking investment purpose, there are much better alternatives out there.

 

[promisespromises]

@faithandhope10 7% at simple intrest is gold

 

[darren81]

@faithandhope10 Bro is this even a question to ask? It's literally free money. I would max out and take as much as I can get if it's simple interest at 7%.

 

[confusedbuthopeful]

@faithandhope10 It's a great deal

 

[godswill4me]

@faithandhope10 From where and how are you getting this?

 

[g%C3%A5%C2%A3g%C3%B6t%D0%82%C3%A3]

@godswill4me Bank employees get loans at simple interest and reduced interest rates.

 

[kendawg]

@faithandhope10 Go for it