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Saturday, July 4, 2009

Home Loan : Prepay or net??

Home Loan rates are more or less stable as of now. In that case is prepaying the home loan better idea??

I think one should put aside 1000 or multiple of 1000 Rs in some good aggressive mutual fund schemes like Reliance Growth /Prima plus rather than prepaying interest.Donot dissolve your PPF etc for prepaying unless it is for keeping the number of years fixed.

Anyway the inflation will decrease the value of money down the line so why to prepay
Other option can be choosing SBI Maxgain Home loan/ICICI Home Saver , where we can put surplus money and can use the Home Loan account as Saving account.

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