Investing in mutual funds to reduce the loan burden

My husband has a loan of 17 lakhs from DHFL at 10.75 per cent for 12 years. He is paying Rs 20,360. We are thinking to transfer it to ICICI Bank at a rate 8.35% for 15 years. His EMI will come down to Rs 16,591. He is already an investor in mutual funds and was planning to do a SWP of Rs 6,500 for the loan. My concern is to reduce to the loan burden with the assistance of mutual funds by investing the difference in EMIs and some more - a total of Rs 10,500. Will it be beneficial for my husband?
--Tejasvini Deepak Salkar

Gaurav Monga, a Certified Financial Planner, responds:

Considering the prevailing interest rates, it definitely makes sense to transfer your loan to ICICI Bank at 8.35 per cent. To be able to answer your query, I need to know from which category of mutual fund scheme you are planning to do an SWP. Further, I infer from your query is that you wish to start investing in mutual funds from the amount which you are able to save, which is a good idea, please go ahead by investing with a long term horizon into a diversified equity funds like Kotak Opportunities Fund, Aditya Birla Sun Life Equity Fund.