POSTED BY January 3, 2011 6:25 pm COMMENTS (6)ON
I have recently received 3 lakhs through a sale of old family property. I have 2 loans running, following are the details:
1.) Car Loan – Principal Outstanding: 3,47,000/-, 24 installments complete, 36 left, EMI: Rs. 12000, Rate of Interest:12%
2.) Personal Loan – Principal Outstanding: 1,38,000/-, 107 installments left, EMI :2190, Rate of Interest 13.75%
I wanted to figure out if its a better idea to partly pre-pay either of the loans or rather invest the money in Mutual funds which can yield better returns. Considering that the larger portion of the interest has already been paid.