I need to take a home loan of 15 Lakhs. I am considering 2 options:
(A)I take a loan of 15L for 10 years
(B)I take a loan of 10L for 2 years
(In both the cases i have 5L in my saving account, but i used that amount only in case 2)
So here i am considering 2 components:
(1)the interest that i will have to pay to the bank and
(2)the tax exemption that i will get under section 24(for the interest part of the home loan).
Which option is generally better A or B?
So my question basically reduces to: Is the fact "The minimum the loan amount and the minimum the loan period, the better it is" true?
CAclubindia
