Is Housing Loan Prepayment a Good Option

Posted in Personal Finance - 28 June 2010 - 1 comment -

I have a housing loan of Rs. 35 Lakh at 9%. Duration is 15 years. I will be getting some money in the next few weeks. I am not sure if I should pre-pay some of my housing loan or invest that in other avenues like the stock market or gold? What should I do?

One Response to “Is Housing Loan Prepayment a Good Option”

  1. Simon on June 28th, 2010 5:58 pm

    Pre-payment of your housing loan is not always good. If your loan interest is 9% and you can easily meet the EMI’s then you may find it beneficial to invest in other place like mutual funds using SIP where you may get more than 9% returns. Also, remember the tax benefits you get on the interest you pay for your housing loan. Before you prepay,weigh these options and make a decision.

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