Home Loan – Pre Payment

POSTED BY Abhishek Dubey ON December 18, 2012 11:02 am COMMENTS (2)

Hi Manish,

I have two questions, one is related to Home loan and the other is for invesment in gold.

The questions are :-

1) How to close / plan home loan pre-payments.

2) Right way of investing in gold.

Please guide me in the same regards.


Abhishek Dubey


2 replies on this article “Home Loan – Pre Payment”

  1. Credexpert says:

    Dear Mr. Dubey,

    Below are the answers to your queries:

    1) Planning Home loan pre – payments: Home loan is a long term financial commitment. Managing home loan repayments can be quite a challenge but a few tips will help you manage your home loan repayment over a long tenure.

    Interest rates: If the current interest rates on the home loan is high it would be advisable that you pre pay the loan. If the rates are not high then you can continue repaying in the normal course of time.

    Income Tax: Consider the tax benefits that you can avail for the principal payment of housing loan under Section 80C.

    Build surplus: Build surplus funds that can be used for pre payments. This can be done if you avoid committing your cash flows towards other liabilities. Use your surplus funds after considering the emergency funds to prepay the home loan.

    Cash Flow: Maintain a monthly cash flow plan that will help you to use your surpluses for prepayments. Also it will also help you to effectively meet the deficits, if any

    2) Investing in Gold
    You can invest in gold by purchasing physical gold coins or gold jewellery or Gold ETF. As you have mentioned that you want to invest in gold, ETF will be the best option for you which assures security, quality and purity.


  2. BanyanFA says:

    Hi Abhishek,
    For investing into gold, the response can be found at another discussion page which was answered recently http://localhost/jagoforum2/gold-etf-or-gold-fund/5459/

    For prepayments, I would recommend you to read http://insight.banyanfa.com/home-loan-prepayment/ which details pros / cons of repayment.

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