Loan prepayments

POSTED BY Javed Khan ON October 5, 2012 3:04 pm ONE COMMENT


I have taken a housing loan of 25.3 lakhs at 10.5% from HDFC bank.I ahve around 4 lakh spare money and want to utilise it properly

1) would it be worthwhile to prepay 4 lakhs and continue to pay the same EMI which would reduce the tenure or prepay and get a new EMI which would certainly be less than what I ma paying now, though I ma ok with paying the EMI I am paying right now.

2) Or should I put this money in a corporate fixed deposit which would earn more interest than 10.5% and not prepay the loan.




One reply on this article “Loan prepayments”

  1. If you are planning to put it in Corporate fixed deposit and nothing else, then better prepay the home loan itself ! .. and keep the EMI same !

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