Major banks and housing finance companies have raised their lending rates. Whenever home loan rates are hiked, borrowers want to know whether they should prepay their loans to save on interest. In the past, there was no clear answer because there were several investment opportunities that could yield better returns than the interest paid on the home loan. Not any longer. Stock markets are looking jittery, fixed deposits are tax-inefficient and debt funds are giving poor returns.
Source: The Economic Times