POSTED BY October 22, 2012 7:01 pm COMMENTS (4)ON
I have taken loan of Rs 2,00,000/- from Bank for 5 years and paying Rs 4800 as EMI from last 2 years.
I checked with bank and they said i can pre pay my loan balance of Rs 1,56,000/-
I have Rs 1,00,000 with me. Just wantde to know is it beneficial to pay off loan early and start SIP for 4800.
If yes then in which all SIP should i invest.
Just as an additional information i am 28 year married guy.
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4 replies on this article “Pay off Loan Early and Start SIP from the EMI amount”
Dear Shreyas, I assume it’s a Personal Loan, You are already over 2Y in this loan & remaining period is less than 36 months. The ROI is 15.5%. If you can earn more than 15.5% from your 1L Rs. amount, you should invest, else prepayment is a good idea sir ji. 🙂
If I were at your place, I would first clear off this loan as its a small ticket loan , so I would better get it off my head and not having it hanging 🙂 . Also prepay 1 lac now and in some months prepay more and clear it 100% . Then start your SIP if needed .
Thanks Biswa….I have knowledge about SIP and i am already investing in HDFC Top 200 and tax saver SIP from last 2 years….i just wanted to know which SIP’s are better from long term prospective apart from the one i am investing in.
Its better not to have loans. If you dont have any knowledge about any of the SIP then you need little bit reading. Please read articles related to mutual funds.