Publication details: Property Hotline โ MB Now – 11-02-2016
Responses, opinion and view from Kartik Jhaveri
Question sent by Mr. Deepak:-
I took a loan of Rs. 10.5 lakhs with tenure of 25 years at an interest rate of 9.65%. I took the loan 2 months ago and I want to make full repayment within a week. If I clear my loan within a week, how much interest will I have to pay? The property is in Baroda.
Advice given:
- Home loan is a good loan to have and now that you have taken a home loan do not be in a hurry to prepay the same, as home loan will fetch you tax benefits.
- Hereโs what I would suggestโฆ. If you can manage the EMI for the home loan then I would recommend investing the money (the one you were intending to use to prepay your loan) across diversified equity mutual funds and balanced funds. Monitor the portfolio and make pre-payments to your home loan out of the profits of this investments.
- Please bear in mind that investments in equity funds should be made within a time frame of at least 5 years and review the portfolio on an annual basis and make changes, if needed.