Home loan EMI: Many people take a home loan and end up paying EMIs for years, sometimes till retirement. But recently, financial expert CA Nitin Kaushik shared a very simple and clever way to save both time and money on your home loan and the best part is, you don’t have to cut down on your lifestyle or do anything risky.
Why Choosing a 30 Year Loan can Help?
Most people think a shorter loan is better because it means less interest in total. But Nitin Kaushik explained that a longer loan, like 30 years, gives you smaller EMIs every month, and that means more money left in your hand.
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For example A ₹50 lakh home loan at 8% interest:
- 30-year EMI: ₹36,688
- 20-year EMI: ₹41,822
- Difference: ₹5,134/month saved
That may not sound like a big deal, but it can actually change everything.
Real Impact, Backed by Numbers
Without prepayments:
- Total Interest: ₹82.1 lakh
- Total Outgo: ₹1.32 crore
- Loan tenure: 30 years
With 1 extra EMI/year:
- Interest Paid: ₹48 lakh
- Loan tenure: 17 years
- Interest Saved: ₹34.1 lakh
- Years Saved: 13
Pay One Extra EMI Every Year
Now instead of spending that ₹5,134 extra each month, Kaushik says to collect it and use it to make one extra EMI payment every year. He says the best time is when you get your salary hike. So by the end of the year, you’ll have saved ₹61,608 that’s enough to pay one more EMI of ₹36,688. This extra EMI goes straight to your loan principal and that helps reduce your overall interest and loan term a lot.
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Kaushik said, “Most people are stuck with EMIs till retirement. But here’s a simple, flexible trick to save ₹34+ lakh in interest and years of stress.”
He says this plan is not about paying more. It’s about paying smarter. He even compared it to investing in your own peace and freedom, without taking any big risks or making painful changes. He shared, “It’s like micro-investing in your financial freedom” reported BT.
