Prepay vs Invest

Clear the loan, or put the surplus to work?

Prepay the loan
₹8.43 L
Interest saved (tax-free): ₹3.43 L
Invest the surplus
₹8.34 L
Net gain after tax: ₹3.34 L
Prepay the loan comes out ahead by ₹9.0K over 5 years. Prepaying earns a guaranteed, tax-free return equal to your loan rate; investing can beat it but carries risk and tax. If the numbers are close, prepaying is the safer choice — and clears the debt off your books.
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