Can I prepay my home loan from my father’s money

[samkapoor77]

I have borrowed a home loan from Punjab National Bank on fixed rate of interest basis. I want to know it is possible that I can repay my loan using my father’s money? If I prepay my loan then will I have to pay any penalty charges?

[samkapoor77]

Yes, you can use your father’s money to prepay your home loan. However, the best way will be to borrow a loan from your father, show it as a source in bank and prepay your loan. Genuinely pay installments and interest to your father. You can show this interest for claiming tax benefit.

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