close loan or not?&repay some amout for get subsidy

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Querist : Anonymous

Querist : Anonymous (Querist)

14 May 2010 hello sir/friends
my father is a salary person. he take Rs. 4,00,000 home loan for 15 years from hdfc bank. its complete 8 years. he is also getting subsidy from government or company.
Emi:-5200/-
subsidy:1000/-
outstanding:-2,50,000/-
he paid totally 4,00,000 including interest.
my question Is if we want to close loan so we will loss of subsidy amount? or if not we will may more 2,50,000 that mean we pay totally 6,50,000/- to bank,? and si that possible we will repay 2,40,000/- and just we have loan outstanding only 10,000/- for more 7 year? what will emi of that amount now interest rate is 10.75%
and can we also get subsidy amount? and howmuch amount will deduct from 80c only for house sing loan interest ?
or better close loan?

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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15 May 2010 Considering the option of subsidy and tax benefits you can continue the loan. The cash outflow will be less for you. What you can do is you invest the amount available with you which is excess in post office monthly income schment and the interst can be paid here so that there will not be additional burden for you.