I have a home loan outstanding amount of 34 lakhs and I have 25 lakh as liquid in the same loan account. Its a Smart home loan where my liquid deposits also earns the same interest (11.25%). Do you think its a good idea to pump 9 lakh more and make it a interest free loan. It is like closing my home loan without any penalty.
In this case I may NOT be able to claim the 3 lakh (1.5+1.5 each me and my wife) interest in IT.
Appreciate your suggestions.