PPF Amount For Home Loan PrePayment

POSTED BY Jipal Shah ON June 17, 2013 4:40 pm ONE COMMENT


I have a home loan of around 25L and EMI is 24722. Home Loan has just started, 3 EMIs are done.

I have a PPF account which is more than 20 years old and that account has 2L amount, some amount was withdrawn last year from this PPF account. So, can not withdraw amount now, dont know when I will able to withdraw (may be in next cycle after 3-5 years).

I want to do prepayment for home loan, from emi calculators I can see if I pay 2L as a prePayment, it will save 10L on interest and so reduce the tenure by 4 years.

What should I do ? Should I close PPF account (if possible) and the amount will go for prePayment?

Thank you. 

One reply on this article “PPF Amount For Home Loan PrePayment”

  1. Credexpert says:

    Dear Mr. Shah,

    If a prepayment of Rs.2 lacs can save you interest of Rs. 10 lacs in the long run, then we would suggest that you prepay the loan by that extent. Ensure that you set aside certain amount as a contingency reserve for unforeseen future activities.


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