Should I prepay my car loan with HDFC Bank

[samkapoor77]

I have an outstanding car loan of Rs. 2, 50,000 with HDFC bank. At present, I have Rs. 1, 20,000 surplus amount in my savings account. What will you suggest ? should I use this amount to repay my car loan or should I invest this amount for my child’s education?

[samkapoor77]

If you know any investment plan that will yield a return more than what you are paying towards your car loan, then it is advisable to invest your surplus money rather than prepaying your car loan. Explore your investment alternatives and then take a rational decision.

[Author]

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