Juststarted - your question is quite genuine - but banks do make money and the equation for how much they make is not as simple as what you earn on a deposit Vs what you pay on a loan
average cost of funds for a bank would be much lower than 10% - all though it varies across banks depending on various factors - its around 6-8% now
so its quite ok for them to offer a loan at 14.5% and still make money
now - in this scenario where the 3 year deposit rate is giving you good returns, you could go for the 3 year loan ( instead of using ur own money ) - but be sure not to foreclose - because then you would lose ( more interest is recovered in initial 2 years than principal)
also shop around for better deal - DONT COMPARE THE RATES ACROSS BANK
COMPARE THE EMI for SAME LOAN AMOUNT/TENOR and COMPARE OTHER CHARGES |