# Compare Home Loan Costs Before Choosing Prepayment or Investment 2026-08-15T12:39:21+00:00 | Business & Economy | Indian Opinion Desk Corroboration: 1 independent outlet Home loan borrowers deciding how to use a bonus or other surplus cash should compare the loan’s interest rate with expected post-tax investment returns, Livemint reports. Prepaying reduces the outstanding principal and can cut future interest, especially early in the loan tenure, when interest forms a larger part of repayments. Investing in equities or mutual funds may offer higher returns, but carries market and capital-loss risks. Atul Monga, CEO and co-founder of BASIC Home Loan, says borrowers should first maintain an emergency fund and assess liquidity, taxes, family needs and financial goals. Prepayment can reduce the loan tenure or monthly instalments. Banks cannot charge foreclosure or prepayment penalties on floating-rate home loans under RBI rules, though borrowers should check terms for fixed-rate loans. A financial adviser can help assess individual circumstances. ## Coverage - livemint.com Tags: Atul Monga, BASIC Home Loan, Livemint, RBI Canonical: https://indianopinion.org/compare-home-loan-costs-before-choosing-prepayment-or-investment/ License: Summary and commentary (c) Indian Opinion, reusable with attribution. Facts belong to the linked sources. Cite: https://indianopinion.org/compare-home-loan-costs-before-choosing-prepayment-or-investment/#story-in-brief Review state: restored archive article, accurate at time of publication, not offered to search indexes.