Is it the best time to repay home loans?
Posted on: 19/Mar/2018 3:32:35 PM
The leading banks and the home loan financing agencies have started increasing the interest rates.
The question arises whether it is worthwhile to repay the home loans earlier while the increase in interest is the trend.
While thinking about repaying the home loan, it is very advisable to consider and explore whether the same amount, invested in other avenues, will earn more revenue than the interest amount saved on the home loan.
In the prevailing conditions, the stock market is in a fluctuating trend. The revenue on the fixed deposit is not promising. The revenue earned on other loan-based investments has also come down.
So, it is advisable that those who can afford can arrange to pay back the entire home loan or a part of it. There are many benefits while repaying a long-term loan earlier.
Long-term loans imply higher interest rates. The Income Tax concession for taking this home loan of Rs. 2 lakhs can also be availed. However, this may not be affordable for many. Those who cannot repay the home loans earlier can explore the possibility of increasing the monthly EMI amount thus ensuring earlier payment.
