Consider this case where
- Cost of a real estate: Rs. 100 lakhs or 1 cr
- Own contribution – 20 lakhs
- Loan – 80 lakhs
- Rate of interest – 10.75%
- Loan tenure – 20 years
Here are the questions for you:
- What is the EMI?
- How much interest will you end up paying over the tenure of the loan?
- What is the real total cost of your apartment?
Now the story.