I have 8.5L home loan pending and current interest rate is 11.75%. I have 3L liquid funds in hand. Please advise me on the following ideas:
1. Is it advisable to pre-pay 3L and reduce the loan amount?
2. Is it advisable to keep the same loan mount and pay EMI(remaining tenure is 42 months) and take the IT-Tax benefit on home loan and invest this surplus of 3L in a fund that gives better returns(12% to 15%)?
TIA