I have a home loan worth Rs. 3600000. The interest component payable each year is Rs.400000. Me and my wife both claim HRA benefit since we stay in a rented flat in mumbai. We also take let out property full interest tax benefit every year. I fall under 30pcnt and my wife under 10 pcnt tax bracket thus effectively we save a lot if we do not prepay the home loan. Can someone please suggest if my understanding is correct or is it still recommended to prepay? If yes then why? Thanks.
