That bonus hits your account, and suddenly you feel rich.
But after the initial excitement comes the big question:
👉 Should I use this to prepay my loan or start/increase investments?
This isn’t a one-size-fits-all answer.
With Vizzve, you can decode the smartest way to use your bonus based on your goals, loan type, and emotional peace.
⚖️ Prepay Loan vs. Invest: What’s the Real Difference?
| Option | Pros | Cons |
|---|---|---|
| Prepay Loan | Saves on interest, improves credit score | May reduce liquidity for emergencies |
| Invest | Compounds returns, builds wealth | Might carry risk, while debt stays active |
📊 Step-by-Step: What Should You Do?
✅ 1. Check Your Loan Interest Rate
If your loan interest is higher than potential investment returns (say 12% loan vs 7% FD), prepaying makes sense.
If your loan is low-interest (like 6-8%), you may earn more by investing smartly.
✅ 2. Understand Your Emotional Needs
Anxiety about debt? Prepaying could give mental relief.
Comfortable with structured EMIs? Consider long-term investing.
✅ 3. Do You Have an Emergency Fund?
If no, use your bonus to first build this.
Vizzve recommends keeping at least 3-6 months of expenses saved.
✅ 4. How Long Until Your Loan Ends?
If your loan is near completion, early prepayment saves very little.
If you’re still in early years, interest savings are higher.
✅ 5. Can You Split It?
Absolutely!
Use 50% to prepay part of your loan
Use 30% to invest in SIPs, mutual funds, or gold
Keep 20% as liquid savings or Vizzve’s smart emergency plan
💼 Vizzve Can Help You Decide Smartly
Vizzve’s tools make it easy to:
Simulate loan prepayment savings
Compare investment projections
Split bonus smartly based on life goals
Access micro-loans or financial coaching if needed
We don’t push you toward one path—we personalize the smartest one for you.
🧾 FAQs
❓Is loan prepayment always better?
No. Only if the loan interest is higher than expected investment returns or causing you mental stress.
❓Can I invest while I have loans?
Yes. As long as your monthly loan EMIs are manageable, you can—and often should—invest in parallel.
❓Should I use a bonus to close my loan early?
Only if you’ve cleared high-interest debt and built basic savings. Vizzve can help you plan the timing wisely.
❓What if I want both freedom and growth?
Split the bonus. Use part to prepay debt, part to invest, and part for peace-of-mind savings.
💡 Final Thought: Balance Is the Real Win
Your bonus isn’t just money—it’s a choice.
Between peace of mind and future growth.
Between today’s relief and tomorrow’s wealth.
With Vizzve, you don’t need to choose extremes.
We help you strike a balance between reducing debt and growing money—on your terms.
🎯 Make your bonus work, not just sit.
Published on : 11th July
Published by : SMITA
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RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed.