Dear Sir, i had taken a loan of 26 Lakhs from ICICI HFC, the current rate of interest is 13.45 %, the current Principial balance is 17 Lakhs and recently checked whether they can reduce the interest to 10.35 % and which they are checking, I was also thinking to get a personal loan and close this and personal loan rate of interest is 10.75%. Request you to kindly whether i should stay with ICICI and reduce the tenure of loan by reducing the interest or should go for Personal loan so that I can have my land documents back with me.
Ans: It's better to stay with ICICI and negotiate the interest rate down to 10.35% rather than taking a personal loan. The reduced rate will lower your EMI and interest costs without the added burden of a new personal loan. Additionally, this approach helps you keep your land documents as collateral, which is typically safer than unsecured personal loans.
Best Regards,
K. Ramalingam, MBA, CFP,
Chief Financial Planner,
www.holisticinvestment.in