I am applying for a loan in HDFC and they have this option in repayment of loan section.After reading this i am not getting much idea on the lumpsum investment part.
I will be getting some lumpsum money in next 2 years as i will be working in onsite soon.So i might want to repay the loan,does the last point make any sense to you can you explain?
- Accelerated Repayment Scheme
Accelerated Repayment Scheme offers you a great oppourtunity to repay the loan faster by increasing the EMI. Whenever you get an increment, increase in your disposable income or have lumpsum funds for loan prepayment, you can benefit by
- Increase in EMI means faster loan repayment
- Saving of interest because of faster loan repayment
- You can invest lumpsum funds rather than use it for loan prepayment. The return from the investments also gives you the comfort of paying the increased EMI.