Loan Management- Home Loan, Plot Loan, Car Loan

Q & A Forum › Category: Home Loans & Credit › Loan Management- Home Loan, Plot Loan, Car Loan

Shiva asked 7 years ago

Hello Srikant, Hope you are doing good ! Currently, I have three loans :- Home Loan: (LIC HFL) Joint Loan - Me and My wife have equal share - Started in 2015 for 20 years - As on date 35 L with 9.6 % Interest rate Car Loan : (SBI) Started in 2018 for 5 years - As on date outstading amount is 5.4 L with interest rate 8.9 % Interest Plot Loan : (LIC HFL) Started in 2018 for 10 years - As on date outstanding amount is 8.7 L. While i am taking caring of other short term and long term investements in parallel i want to repay the loans asap. Please help me know which loan should i repay faster and which one to go on slow? Regards, Shiva

4 Answers

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Sreekanth Staff answered 7 years ago

Dear Shiva, I am doing good, thank you. How about you? Are you investing adequately for your important financial goals (ex: Retirement) along with paying EMIs for these three loans? Is your spouse an earning member of your family? Are you planning to convert the plot loan to home loan and construct the house in near future?

Shiva replied 7 years ago

Hello Srikant,

Thanks for your swift response!

Are you investing adequately for your important financial goals (ex: Retirement) along with paying EMIs for these three loans? : My investemnets are in NSC, PPF and Mutual funds.

Is your spouse an earning member of your family? : Yes she is a working member

Are you planning to convert the plot loan to home loan and construct the house in near future? : This is only for investment and no plans to convert for home loan.

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Shiva answered 7 years ago

Hello Sreekanth, Thanks for your swift response !
Are you investing adequately for your important financial goals (ex: Retirement) along with paying EMIs for these three loans? : Yes, I am investing in PPF, NSC and Mutual funds (This is together me and my wife)
Is your spouse an earning member of your family?: Yes she is a working member
Are you planning to convert the plot loan to home loan and construct the house in near future?: This is only for investment and no plans to convert to home loan

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Sreekanth Staff answered 7 years ago

Dear Shiva, You may try clearing your Auto loan at the earliest then followed by Plot loan. Related article : List of Articles on the key Components of Personal Financial Planning

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nainakapoor answered 7 years ago

This is nice discussion.
Hi Shiva you need to clear your SBI car loan first then plot loan and at last home loan.
Your home loan is for 20 years so you can also check any better home loan transfer option.