Shall I repay my existing home loan??
Hi, My home loan is 10 years old and now outstanding balance is 6 lacks (bank charge 10.5% interest rate), I can pay this amount using my saving and FD. I am not availing loan principal amount for tax saving under 80C as my other investment such as PPF and EPF are adequate to cover the quota of 1.5lac of section 80C.
Please advise if it make sense to repay the outstanding loan or continue with the loan for another 5 years. more
Please advise if it make sense to repay the outstanding loan or continue with the loan for another 5 years. more
Viewed by 435
View all 32 comments Below 32 comments
It makes sense to pay off the house loan in case you do not intent taking a loan for car or any personal loan in near future. Car loan and personal loans carry higher interest. There is no significant saving if your own money is in FD and you are availing benefit of only the tax break on interest paid. more
Jun 20
Hi Abhishek! your decision should be based on your investment options. if you have better options to invest your money to generate better ROI then you should continue with your loan, In case you are keeping your money in FD or other such instruments where you are not generating higher returns than your loan rate of interest then you may ne well of clearing your loan since you are not getting any additional advantage from your loan in terms of 80C benefits. more
Jun 19
You can invest your money in hand for the purchase of land. the land never increases but value increases.Do not close your house loan. It may be done at the time of retirement.s more
Jun 19
It seems that nobody take it as a time pass on the subject Black Money. We Indians are very sharp and Intellectuals so such Issue can be resolved soon. Why it has kept Lingering is a questin. more
Jun 19
