I would vote for option #2. I was in a similar position (not in India though). The reason why I chose 2 is because fixing my financial situation would be a prio

I would vote for option #2. I was in a similar position (not in India though). The reason why I chose 2 is because fixing my financial situation would be a priority. There is a great feeling to know you don't owe anything and you're free in that regard. Last thing I would want is to start a business of my own with debt still around.