He gets a concessional rate by virtue of being an employee, and is in no hurry to prepay the loan. No one thinks of selling off a house to repay a loan, as such an action brings severe emotional stress. Or he will have to be content with less cash post retirement, since he will be drawing upon his corpus to repay the loan. In an emergency, his corpus can be used to repay the loan, without selling the house. Ashish should keep the loan unless his emotional need to repay is too high.Disclaimer: The opinions expressed in this column are that of the writer.

Source: Economic Times February 12, 2018 00:56 UTC