Most of us look at loans the wrong way. 😓 We incorrectly assume that lower the interest amount paid the cheaper it is. Well, not exactly. ❌ Instead of looking at interest amount paid we should look at effective interest rate. For home loans and education loans the effective interest rate after tax benefits is around 4-5% ! No ask yourself this - If you have some extra money, would you want to use it to save 5% interest or invest it to get 10%-12% returns from stock market. I know you might say stock market isn’t guaranteed. But home loans are for 20 years. Over 20 year period NIFTY has given 15% CAGR. I’m being more conservative and assumed 10-12%. 👉🏻 For me the answer is the latter. However, if handling loans is not your cup of tea or if you have unstable income then prepaying is the better option. . . . . . . . . . #financewithsharan #loanofficer #loan #savemoney #investing #stockmarket #stockmarketindia