Navigating the dilemma in 2024: Should you prepay home loan or invest money?

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Also Read: Budget 2024-25: Three key expectations for the real estate sector Quicker debt freedom: Prepaying hastens loan redemption, shrinking the burden of debt faster. This translates to reduced interest payments and a lighter financial load. Peace of mind: Eliminating a significant debt can be liberating, boosting security and offering greater financial control.

Higher loan eligibility: Early loan closure can improve your credit score, potentially paving the way for larger loans in the future.

Also Read: Planning Your Property Purchase? Why an Eligibility Calculator Should Be Your First Stop Potential for higher returns: Investments in assets like stocks or mutual funds often promise returns exceeding home loan interest rates. Over the long term, this can significantly grow your wealth. Diversification: Investing balances your financial portfolio, mitigating risk and building long-term financial stability.

Retirement security: For long-term goals like retirement, investing early allows your money to compound, creating a substantial corpus.

Also Read: Reverse mortgage vs loan against property: Which is the best option for leveraging home equity? There's no universally perfect answer. Here are some factors to consider before making your decision: Current loan interest rate: Compare your loan's interest rate to potential investment returns. If the investment offers significantly higher returns, consider investing.

Risk tolerance: Investment markets are volatile. If you are risk-averse, prepayment's guaranteed reduction in debt might be more appealing. Financial goals: Prioritise your financial aspirations.