Question
Should I prepay my home loan or invest?
Answer
Bottom line: Compare the post-tax cost of your loan with the return you expect from investing — the higher one wins.
1. Loan side
If your interest gives no tax deduction (new regime or limit exhausted), the full rate is your cost.
2. Investment side
Prepaying saves a guaranteed amount; investment returns are uncertain.
3. Balance
Many keep some liquidity and prepay when the loan rate clearly beats expected returns.
Model prepayment with our EMI Calculator.
This answer is general information based on the law as it stood when written and is not professional advice on your specific situation. Verify the current position and consult a qualified professional before acting. See our disclaimer.