IS WISE TO CLOSE HOME LOAN EARLY?

I have a home loan where balance is 2.75 Lakh and 9 EMIs are remaining, I have savings to close the loan next month in April 2019 but I am unable to decide as I will lose interest benefit in IT, should I prepay and close loan or continue it?

Dear Smile Arora ,

I do not know whether you will satisfied or not with my answer bcoz ,you did not mention EMI amount & Rate of interest your Bank charging you.

But as you mention that Only 9 EMI left & You are in planning to Save Tax,Since in last budget Finance Minster extend or change Tax slab & as your Home loan in last stage ,You will not get much benefit of Interest as well as Principle part. As per income tax rule any individual if having home loan ,then maximum benefit for particular financial year can avail Rs.3.5 lacks .

My advise if you really want to save tax ,Then you close home loan and investment EMI amount in Various TAX Saving Investment.

With Regds

Rizwan Shaikh

+91–9820468704

(www.capitalonefs.com)

https://qr.ae/TW8MPJ