Policy Or Not?:

With the former, your monthly outgoing will be Rs 16,746.80, being the EMI cost (Rs 15,650). Add the insurance premium of Rs 1096.80 (actual premium Rs 1,371 less Rs 274.20 as 20 per cent tax rebate), to the EMI and the total comes to Rs 16,746.80. While in the latter, the loan is repaid at a flat rate of 18.25 per cent which aggregates to Rs 16,370 per month.

The difference in favour of the latter comes to only Rs 376.80 per month, clearly telling you which is the better deal of the two. Moreover, a loan with a policy ensures an accident or death cover of Rs 10 lakh for 15 years or Rs 3.34 lakh on maturity after 15 years. Whereas in the Griha Laxmi scheme there are no such returns or incentives.