Loan pre-payment

This query is : Resolved

Sunil Jain (Querist)
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30 July 2010 I have 2 land loans of same tenure
1) 12 lakhs at 12% p.a.
2) 11.5 lakhs at 10.25% p.a

I have about 6 lakh rupees and I am thinking of pre-paying the loan. Please advise me in what manner should I pre-pay? Should I pre-pay 3 lakhs each for both the loans or should I pre-pay the entire 6 lakhs on the loan that is on 12%.

Please advise....

One more thing. Is it advisable to take us an OD ( overdraft facility of bank at 12%) to pre-pay this loan. The logic is that in OD, we have to pay only the interest; while in land loans thru EMIs a majore portion of EMI gets serviced in paying the interest.....