I took a personal loan of 5.75L from a private bank at 12.5% for 2 years. I’ve already paid 8 EMI (1 EMI=Rs. 27202)
Now I’ve money to prepay the remaining loan and end it. However, when I calculate it seems if I continue the loan for the full tenure I would be effectively be repaying the bank at 6.25% (annual rate of return) for 2 years.
I am confused if it makes sense to continue with the loan for the full duration and invest the money elsewhere or should I prepay the loan.
Kindly advise.
Thanks, Anand