hi ,
I’m an NRE and I have a SBH housing loan of Rs20 lakhs oustanding to be paid in 14 years from now ( Original period is 20 years as on feb 2008) with an interest rate of 10.75 %
As I have Rs 5 lakhs at the moment, Im not sure if it is wise to pay this amount against the housing loan to reduce the principal ( if so how much would be reduced?) , or to save this in NRE FD ( offering 9.25% tax free). Could you please let me know which is the better option.
Thanks in advance
Regards,
Siva