Hi,
I have SBI Max Gain home loan on a flat in Bangalore and possession would be in FY 2015/16. I am paying the interest on disbursed amount (instead of total loan amount) every month.
I have 2 lakhs sitting in my SB account which give me 4% interest. I am an avid follower of this site and ET Wealth and I am aware of Max Gain rules and Taxation rules. I am planning to transfer 2 lakhs to SBI Home Loan account where I am charged 10.25% interest rate. This would reduce my EMI and Principal amount too.
Should I prepay the loan or let it sit in SB account?
Thanks,
Siva