Does Loan against FD make sense for a Car when cash is available?
I'm planning on buying a car for ~25L and I have all the money on hand. It's currently split in FDs between my dad and me.
I'm not able to decide if I should take a normal car loan or Loan against FD or OD against FD, I've seen posts about it but there are conflicting calculations in the comments and I'm not sure which is legitimate.
I'm planning to put 13L down and take a loan of 12L. The dealership is offering me 7.5% floating and 8.5% fixed interest, I've not yet reached out to the banks.
I just wanted to have some extra money on hand as I plan to take a home loan in the next 2-3 years. I currently earn ~20L and will cross 30L by then. My dad is retired and only income on paper is other FDs that he gets interest from.
Should I go for the car loan? Would banks offer a lower interest rate than the dealership?
Is it better to just pay the entire amount outright since I have the money and just save the amount for a couple years?
Does a Loan against an FD make more sense?
Does an OD against FD make more sense?
Please let me know if there's anything else I need to consider to make this decision?