PREPAYMENT OF HOME LOANS A DISCUSSION

srinivas kamarsu says :
In LICHFL also, there won't be any prepayment penalty if the loan is prepaid from own savings/windfall gains for which documentary evidence is produced by the customer. Kindly incorporate the same in your article. Not only that there is special facility of No Prepayment charges for the selected corporates for payment of 10% of sanctioned amount in an year.In fact ,Prepayment charges can be waived if the same is paid through own savings for which documentary evidence is to be submitted by the applicant.Prepayment charges are to be separately or it will be deducted from the amount paid towards prepayment.

dipak biswas
It is always beneficial to prepay any outstanding loan amount rater than investing money else where. At teh same time you do need some investment for securig your future. Do that but beyond that if you have any surplus money then prepay any loan that have. do it in reverse order of interest rate charged. higher the interest rate the earlier that loan should be closed.
In case of part prepayment of house loans, try to get a reduced term ratehr than reduced EMIs if you can afford those EMIs. that will save you a lot in interest payments.

Shrivallabh Deshpande says Do not Prepay the loan
Home loan across the globe is the cheapest loan.One cannot get any kind of loan which will attract lesser interest rate. Hence prepaying such a loan in particualrly days when the interest rate are at there all time lows is a waste of money. Instead use that money to invest in higher return securities. with todays scenario investing the extra amount in PPF is also more profitable. Moreover in near future if you have to take a personal loan for any reason then saving the money which you were going to prepay may come to your rescue. Yes i do agree that prepaying if interest rates are high should be considered.
jignesh joshi says
Most of the customer taking a loan on floating rate. noraml man do not know how and when the policy changed by RBI and banks. So in any circumtances pre-payment of loan is always better option.Also you can invest EMI amount regularly. it is additional benefit. is it make sense?