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Preclosure of personal loan or investing in equity

A P Arun (Professional) (28 Points)

05 November 2017

I have a personal loan of 13.99% interest which will get over by in another 2.5 years. I could save 80K if I close it by Dec 2017. Is it wise to preclose the loan or invest the amount in equities. Please advise me.

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Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (160332 Points)
Replied 05 November 2017

No one can predict the market or any particular equity for short/medium term...........

Timing market is foolish act........

In Long term equity can give you average 15% to 18%, but not guaranteed......

In general, not advisable to borrow loan for investment!!!

A P Arun (Professional) (28 Points)
Replied 05 November 2017

Dear Sir,

Sorry if my question made you to think differently.

My query is, I have invested some money in Equity Market, with that money shall i preclose my personal loan which has 13.99% interest rate or keep the money invested in Equity Market. If I preclose it now I could save around 80K. Is my decission is wise? Please advice. Thank you.