Hi, I have joined an MNC in april 2016 after my MBA that ended in March 2016. I have taken a loan of 14.5 lacs at 9.55% interest rate. I have a taxable component of 10,50,000 p.a. I want to know whether I should start the repayment of my education loan asap or buy term insurance, invest in NPS and PPF or both. kindly guide me
I suggest to balance both repayment of loan and investment. Because if you repay the loan, then for interest part you will receive tax benefits under Sec.80E. At the same time, you must concentrate on buying term insurance, health insurance, and accidental insurance at the young age as insurance will be cheaper when you buy them at young. Also, it is wise to start to invest for your future financial goals like retirement. A balancing approach is MUST.