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Compare the interest saved by applying a lump sum to your loan with the projected gain from investing the same compared amount over the original remaining tenure.
The loan scenario keeps the existing EMI after prepayment and estimates the resulting payoff time and interest saved. The investment scenario compounds the same compared amount at your constant annual return assumption for the original remaining tenure.
The difference is not a recommendation. It does not value EMIs released after early payoff and does not include taxes, prepayment charges, or market volatility.
Review your lender's terms and your policy or investment tax treatment separately before making a decision.
This compares modeled interest saved with projected investment gain over the original 10.0-year loan horizon. It does not value the EMI cash flow released after early payoff or adjust for taxes, charges, market volatility, or benefit timing.
A constant annual investment return of 7.29% would produce a projected gain equal to the modeled ₹5.10 L interest saving over 10.0 years. This is not the loan APR, a guaranteed return, a risk-adjusted comparison, or a post-tax result.
Illustrative comparison only. The loan keeps the same EMI after prepayment. The investment uses a constant annual return assumption over the original loan tenure. Taxes, prepayment charges, market volatility, and reinvestment of EMIs released after early payoff are not included. Not financial advice.