I have taken a home Loan for 28.5 lacs in SBI. I got 6 Lacs from my father and I am thinking of prepaying my Loan. Since my loan disbursement is not over, SBI said that I cannot prepay now and should have to wait till the disbursement is over(4 more months to go). I had already invested this amount in ultra short term funds and will continue till the loan disbursement is over.
The questions are,
1. Can I use this amount to prepay the loan without any prepayment charge(as the bank says that I can prepay the loan without any charge if it is from my own source. Not sure on the terms that come under “own source”)
2. If I have to pay any charge for prepayment, I am thinking of not touching my salary for 4 months and taking my monthly expense from the 6 Lacs. In that way, I would be prepaying the loan from my Own source. If this is the case, Can I invest my salary somewhere without deviating from the term “Own source”(Will the bank accept this?)