Do what governments do: use inflation to reduce your loan3 min read . Updated: 17 Aug 2010, 09:23 PM IST
Do what governments do: use inflation to reduce your loan
So you read the headlines on Tuesday about the hike in the home loan rates and are wondering what to do: prepay that home loan or let it run on and allow investments to continue. I call it the classic “prepay or invest" fork in the road that the urban mass affluent investors face. There is enough money built up that can be used to make a significant dent in the home loan, but that would mean redeeming funds or selling stock (assuming that the money is not busy losing its shirt in a savings deposit), but should you do it?
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