Do I have to repay my home loan in mutual funds, savings FD?

I retired as a public sector unit (PSU) employee in 2017. I have a home loan with an outstanding amount of 17 lakh to be repaid by 2027.

My mutual fund savings are now close to 17 million. The value of my bank fixed deposit account is approximately 38 million. I have no other liabilities. However, I will have to plan my daughter’s wedding which will take place in about a year.

I have two apartments, one of which is in my name and has a market value of 25,000,000. The annual interest on my home loan is about 60,000. Please advise if I should close my home loan from these funds or continue to pay EMI for the next five years.

—Name withheld on request

From the data you provided, it appears that you are currently paying a very small portion of the interest on your home loan. This is likely because most of the interest on your home loan has already been paid in the first part of your loan term.

Since most of the EMIs you are currently paying are for principal repayment, it may make sense for you to keep this loan as your mutual funds and bank deposits are likely to earn a higher return than your loan on a five-year period. period.

I had opened an account in a private bank as a student about 25 years ago. I completely forgot about it and didn’t use it for a very long time. Also, my current employer asked me for the same bank account number and I want to reactivate it now.

Besides KYC documents, do I need to submit anything else? If yes, what would it be? Will there be a charge on top of the resort fee?

—Name withheld on request

Since your account has been inactive for more than 24 months, it will be treated as inoperative or dormant by the bank. You will need to complete KYC (know your customer) documentation for the bank to reactivate your account. As per Reserve Bank of India (RBI) guidelines, there should be no charge for activating an inoperative account.

Vishal Dhawan is a certified financial planner and founder of Plan Ahead Wealth Advisors, a Sebi-registered investment advisory firm.

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