Five factors to consider before prepaying home loan
Should you prepay your home loan or invest the funds? Consider factors like tax deductions, the need for immediate funds, return potentials of alternative investments, and other outstanding loans
When a lender sanctions you a home loan, your eligibility is decided based on your current income. In majority of the cases, the home loan is taken during the initial stage of one’s career where the income increases over the years and the borrower can accumulate enough funds during the tenure of the home loan. In such a situation he faces the dilemma of whether to prepay the home loan by utilising the surplus funds or to invest the funds somewhere and let the home loan run its course. Moreover, as the interest rates have also gone up significantly of late, borrowers are considering this decision seriously.