Hi Sir,
My Query is about partial pre-payment of loan. I have the following two loans.
Home Loan(Fixed)
Amount : Rs.2,00,000
IntRate : 11.5%
Tenure : 60 moths
Date_Loan_availed: Jun-2006
EMI : Rs.4400
Car Loan
Amount : Rs.4,00,000
IntRate : 8.23%
Tenure : 60 moths
Date_Loan_availed: Mar-2006
EMI : Rs.8400
Query 1) I would like to do a partial pre-payment for Rs.1,00,000 in one of this loan. Which loan should I pre-pay.
Query 2) If I am going to liquidate some of my Mutual Fund Investments, (which gave me a 30%+ return in the last 5 year) to do pre-closure of this loan will it be wise to do so?
Currently I am claiming tax benefit on the home loan.
Thanks in advance for your guidance.
Regards & Thanks Prajith