Question: I have a home loan for 20 yrs , monthly EMI Rs. 5000 approx, 4 yrs have already passed, should I repay principal amt as and when I have money or pay monthly EMI for remaining 16yrs
Answer: When you take a loan, you can claim up to 100,000 (Principal amount repaid) under Sec 80C and interest of up to Rs.1.5 lakhs as one more deduction. Once this is done, according to your tax bracket- the rate of interest comes down. If you have better investing opportunities above the cost of the loan, you should not make any pre-payment. Consult your financial advisor for a detailed review.