I am the only earning member in my family. I had taken a home loan of ₹ 30 lakh for 20 years in November 2011 with a fixed interest rate of 10.75% for three years. Which is a better choice - part prepayment of ₹ 2 lakh for the home loan or investing the same amount in the equities market, mutual funds or fixed deposit? —Sharda P First make sure that you have enough money set aside to meet emergencies such as a job loss, etc. (typically three to six months of expenses such as EMI and insurance premium). Next pay off the more expensive loans (if any) such as credit cards, personal loans, etc even if that involves prepayment charges.
Only if you still have a sur-