Fixed or floating rate of interest

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Amitoj Sethi

(Director, www.deal4loans.com)

I have been working for the last three years and my monthly salary is Rs 24,000. I want to pursue higher education and will be requiring a loan of Rs 2.5 lakh. Please let me know what would be the EMI and the rate of interest on this loan amount? Also, from when do I need to start paying back the loan amount after completing my education?

You should ideally take an education loan. These have multiple benefits like low rate of interest, deferred repayment and tax benefit. The rate of interest would be in the range of 12% to 14% and the repayment would start only after the completion of your course. The EMI would depend upon the duration of your course.

Considering the present scenario, what will be a better option regarding a home loan: a fixed rate of interest or a floating rate of interest?

Ideally you should decide on whether to take a fixed or floating rate of interest based on your view on the long term interest rates. In my mind, these are likely to go down over a five to 10-year period, and hence I would recommend that you take a home loan on a floating rate of interest.

I am a salaried person and my annual income is Rs 6 lakh. I am planning to take a home loan but don’t have money to make a down payment. Can you guide me to some banks that can provide home loans without having to make a down payment? Are there any special conditions attached to this kind of a loan and at what interest rate will the loan be available?

I am not aware of any banks that offer 100% home loans. Some projects do offer such deals in conjunction with banks, but then you have to purchase the house in that specific project only. You could also opt for a personal loan to cover the down payment.

I am a 30-year-old married individual drawing an annual salary of Rs 8 lakh. I am planning to buy a house and would require a loan of between Rs 2-25 lakh. Am I eligible for this amount? If yes, what will be the EMI that I will have to pay and which banks would you recommend?