I have an ongoing loan with a 10.2% interest rate. I have already been paying it for the last 2 years, and the remaining amount is around ₹6.15 lakhs with 33 EMIs still there till Jan 2029.
I have an option to close the loan early by paying ₹3 lakhs twice. But if I do that, almost all my savings (around ₹5.5 lakhs) will be used up, without touching my SIPs.
If I close the loan fully, I can save about ₹92,000 in interest. If I pay ₹4 lakhs as part payment, I can save around ₹78,000, but the loan will still continue for about 11 more months.
I have a stable job and can manage my monthly expenses easily. Also, I don’t have any big financial responsibilities planned in the next few years.
I just want advice on what would be the better option among these Part Payment/Pre Closure/Let it run like it/Invest the same amount.
I work in the corporate sector, and with all the talk about AI affecting jobs, I have been a bit worried lately.
Please let me know if you need any more information.