Preclose home loan or invest?
Age 28z I have a 80L in cash and a home loan of 1.14Cr. I am earning 2.4L per month. Currently I am paying EMI of 1.37L per month and the loan tenure is for 10 years. Should I preclose my loan or invest the lump sum cash.
I can tell you that with 80L cash you can't preclose a 1.14 Cr home loan.
I would suggest you to break down like this :
Keep 40L in savings/investments like low tisk ones like bonds or whatever.
Other 40L you can part pay the home loan.
Also, please do search more on this :
Invest your money in FDs offered by Stable Money at Small Finance banks who offer upward of 8% Interest.
But in order to protect your whole corpus , ensure that you fill the FDs within DICGC limits.
For example, DICGC states that if you lose any amount below or upto 5L due to bank shutdown etc., Govt of India gives it to you back.
Check if the limit is per account or per user and proceed or else, you can try to invest all the money in Sovereign bonds .
My measurement says you can get some 50K as monthly interest enough to cover some expenses.
Tbh, foreclosing is okay but not at the cost of your emergency liquid funds. Also foreclosure charges is high for the amount of loan you've taken.
get rid of liabilities first
Also if you are investing in bonds just invest this massive sum only only in AAA rated bonds, lowest risk corporate / state bonds which offer kinda 9% - 11% P.A @NoobieDeveloper
if you are using new regime there's no benefit of home loan interest.... so better prepay little bit .... after that reduce the loan period without changing EMI amount
