Hi,
I recently took home loan form indian bulls at 10.25%. The duration of EMI (of Rs 11,000) is 30 years but I am sure that I’ll pay the loan in full in 3 years. There are no extra charges if I pay full loan in 3 years. Problem is that the guy from Indiabulls suggested me to keep the EMI low (Rs. 11,000) whereas I can pay upto Rs. 40,000 as an EMI. The reason he gave was that in first years, they deduct mostly interest.
Can anyone suggest me if I should increase EMI or continue with same EMI? I also want to know this with respect to income tax benefits.
Thanks.