Should I pay back my car loan or invest somewhere else

I have a car loan of 550000, 9.75% rate for 84 months. It is a diminishing one. I have started the loan in 2016 Aug. My doubt is, if I get some big amount like one lakh or something, what would you advice me? To invest somewhere or Pay for loan? I want to reduce my burden in fact. As my loan is in initial stage will the bulk amount go to the principle amount or to the interest?

Mar 27, 2017 by Sree, Kerala  |   Financial Planning

It is always advisable to reduce your liabilities as much as you can.

In fact you should first limit or pay off your liabilities and then start saving. In case you repay a lump sum amount of your car loan the same will be reduced from your principal loan outstanding amount.

However, you should check this with the bank/ institution before you pay back the part of the loan.

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