Section VI: Income Tax and Your Financial Planning

• Ques: Reduce your borrowing costs
• Ans: Key points:
  • You can reduce your home loan cost by taking home saver or smart home loans where you can deposit your surplus funds instead of keeping them in saving/fixed deposit thereby saving interest on home loan.
  • You can save on home loan by taking joint home loan as the eligibility and tax benefits will be higher and effective rate will be lower.
  • You should take secured loan against LIC/NSC/ BONDS/KVP/shares/mutual fund/ PPF/GOLD/house rather than unsecured as the cost of personal loan / credit card is just double and repayment is also difficult.
  • Keep your repayments regular and get cheaper loans in future, further save on penalties etc.