Need A Financial Product › Forums › Loans › Should I prepay my home loan from my savings

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  • August 12, 2014 at 4:12 am #46805
    samkapoor77
    Keymaster

    I have an outstanding home loan of Rs. 12 lakhs. I borrowed it from ICICI Bank and I paying interest at near about 10% rate. I have Rs. 7 lakhs in my savings account. Please suggest should I prepay a part of my loan from this amount or should I invest it somewhere.

    August 13, 2014 at 11:24 am #46806
    samkapoor77
    Keymaster

    Prepaying your loan may involve prepayment charges. In addition, it will reduce your tax benefits on EMIs. I will suggest you to use a part of your savings in prepaying your loan and keep the balance in savings account or FD as a buffer for rainy day.

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