Housing Loan Pay off OR invest in Fixed Deposit ?

POSTED BY Sameer B Bhodia ON October 3, 2013 5:27 pm COMMENTS (4)

Hi All,

Need some advise please..

I’ve taken a housing loan in the year 2006 of Rs. 12 lacs for 20 years. Its been 7 years & I’ve been paying my EMI’s properly. Monthly EMI is Rs. 11040/-

Fluctuating interest rate @ 9.50% (being Nationalized Bank interest doesnt fluctuate more, it remains near the same only). Today my Housing loans still stands at Rs. 10 lacs + something.

I’ve saved certain amount & wish to pay off approx 3.5 lacs out of total Rs. 10 lacs to reduce the loan burden, however one of my friend advises me “Not to pay in Housing Loan but Invest in a Fixed Deposit. Only continue paying EMI’s as actual”

Can someone please advise how it would be beneficial?





4 replies on this article “Housing Loan Pay off OR invest in Fixed Deposit ?”

  1. Sameer B Bhodia says:

    Hi Ashlanshu,

    I just found your reply in the other discussion.

    Your advise is precise, I would prefer to pay of partial loan which will get me & my family a bit tension free. There is no income stability due to fluctuating markets hence if pressure would be low, I can dare to think something different, something out of box & may earn more than present.

    Thanks once again.

    – Sam

  2. Sameer B Bhodia says:

    Thanks ASHALANSHU for your advise.

    I’m bit new to this forum hence I’m unable to find my query which I’ve posted in other discussion. May I request you to pls advise here again OR share the link to other query so that I can check it there?

    Your replies are most awaited. Thanks in advance.


  3. ashalanshu says:

    Dear Sam, if emotional part is stronger for you to get rid of loan, please pay. Financially I w’d like you to continue the loan and invest the amount elsewhere.



  4. ashalanshu says:

    Dear Sam, please read my reply given to you on same query in other discussion.



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