Diwali Bonus: Spend, Save, or Prepay?

That ₹50,000 feels like free money — spend it all and it's gone by December, with nothing to show.
The real question isn't spend vs save, it's: do you have an EMI costing more than 12% interest? Prepay ₹20,000 on a ₹3 lakh personal loan at 14% and you save nearly ₹8,400 in interest over the loan's life.
Run the numbers before you run to the mall.

What this means for you

• Prepaying ₹20,000 cuts your loan tenure by roughly 3 months.
• ₹15,000 in an FD at 7% grows to ~₹16,050 in a year — a safe cushion.
• ₹15,000 in an index SIP at 12% average could become ₹26,000+ in 5 years.

What you can do

• Split it: 40% toward high-interest debt, 30% save or invest, 30% guilt-free spending.
• Check your loan's interest rate first — above 12%, prepayment beats investing almost every time.

The ₹50,000 question isn't spend or save — it's which pile grows your money fastest.

Grow with clarity 🌱