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Inputs by Dev Patel, Quantitative Research Analyst at 1 Finance

This situation is a reminder of why open conversations about money are so valuable in families. If your father had known about your emergency savings, he might not have taken this loan in the first place. Going forward, making personal finance a regular topic of discussion can help ensure that family members know what resources are available when needs arise, so everyone can support each other in making the best financial decisions.

The decision to prepay the entire loan is financially smart. Here's why:

Assuming a 3-year loan tenure, you'll pay Rs 2.4 lakh in interest on the Rs 8 lakh principal, while the Rs 5 lakh fixed deposit will earn only Rs 1.1 lakh in interest (7%). This leaves a net cost of Rs 1.3 la

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