For construction of a house if we go for a personal loan is a good idea?

Somehow i am not able to take a home loan.
PL interest -10.25% pa
HL interest 8.75% pa

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Banks PL are good vs PL from NBFC as their ROI will be higher. If you have a good credit score you can get it around 10.5-11.0%. The only issue is that most PL are given for max. 5 years, so you would have to think before you opt it out. I assume you would be interested in constructing a 1+1/1+2 home on land, which if planned properly can be finished within 15-18 months, and the interior will further take 4-6 months almost around 2 years in total.

Benefits of PL will be that bank will credit it into your account vs. in home loan they will pay directly to vendor or contractor, and some material purchases and payments would have to be done in cash, which isn't factored in Home loan. You can cover the differential interest by discount offered by vendors, when you pay them in cash.

By advice would be first hire a contractor and consultant and determine your overall cost, time period for construction, and then apply for PL accordingly. Only one drawback in PL, you can't opt for longer repayment period.

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Thank you so much for the detailed information

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In case bank not giving..go for bajaj

What scheme is there of bajaj

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