EPF vs Home Loan: Should You Use Retirement Savings to Clear Debt?

• EPF offers a tax-free 8.25% return, equivalent to ~11% pre-tax for a 30% tax bracket, making it a powerful retirement asset.
• Home loan interest rates are typically 7-7.5%, and under the old tax regime, offer tax benefits, though not for residential property under the new regime.
• Using EPF to repay a home loan frees you from EMIs but depletes your crucial, long-term retirement fund, which is hard to rebuild.
• Allowing EPF to compound can significantly grow your wealth (e.g., ₹20 lakh to ₹44 lakh in 10 years, tax-free), providing a strong retirement corpus.
• Generally, it's more prudent to let EPF compound and repay your home loan as usual, unless you are very close to retirement with excess EPF funds.

Why It Matters: Prioritize EPF's tax-free compounding for retirement over early home loan repayment.