Need a help to figure our whether am making a good decision,
Home Loan : 52,00,000 (8.35% Interest rate)
Personal Loan : 5,00,000 (11.11% Interest rate)
Credit : 2,00,000 (From friends)
I just sold my apartment for about 33,00,000/- and Im planning to pay off my personal loan, 2 lacks to my friends and 2 lacks to government bonds and remaining to home loan. Is my plan seems to be fair or is there any suggestions that you can give. Please help.
Seek professional help. You will be much better off.
I would suggest you to first repay personal loan since it is at highest rate and than go for repaying home loan … Loan from friends does not bear any interest rate and can be paid later on … Regarding investing in goi bonds, you should better start with paying off your liabilities first and than think about creating assets because in general liabilities costs higher than the return from your investment…
Please consider Income tax LTCG/STCG gain implications on property sale before you use the proceeds. You may have to invest in another house/bonds to avail benefite of tax exemption. If you dont avail any tax exemptions benefits then park reqd amount for tax payments in short term liquid funds and pay advance tax in next installment.