In news certain to lift the spirits (and possibly lower the blood pressure) of homeowners everywhere, financial expert CA Nitin Kaushik has unveiled a refreshingly simple trick to turn the tables on decades-long EMIs—without anyone needing to channel their inner financial yogi or sell a kidney.
The Traditional Trap—and the Clever Escape
Most homebuyers resign themselves to carrying the burden of monthly EMIs right into retirement, like an unwanted family heirloom.
But Kaushik, in a recent viral X (formerly Twitter) post, says there’s a smarter way: “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.”
Here’s the twist—Kaushik actually recommends going for the long-term 30-year home loan, not because he secretly wants you to grow old with your lender, but because those lower EMIs unlock a hidden advantage: flexibility and more cash in hand each month.
The Surprising Math
Let’s break it down with Kaushik’s numbers:
- Take a ₹50 lakh home loan at 8% interest.
- 30-year EMI: ₹36,688.
- 20-year EMI: ₹41,822.
- That’s a ₹5,134/month difference—money you save simply by choosing the longer tenure.
The One Extra EMI Magic Move
But don’t blow that extra cash on gourmet coffee just yet. Kaushik suggests you collect that monthly saving, and once a year, use it to pay one extra EMI. The best time? When you’re feeling flush after your annual salary increment.
If you save ₹5,134 each month, you’ll have ₹61,608 at year’s end—enough to pay an extra EMI of ₹36,688. That bonus payment goes straight toward your principal, shrinking both your interest outgo and your total loan tenure.
The Results
With no prepayments, your total interest outgo on that ₹50 lakh loan is ₹82.1 lakh, for a grand total repayment of ₹1.32 crore over 30 years.
Kaushik’s hack of making 1 extra EMI per year, trims your interest to ₹48 lakh and your tenure down to just 17 years.
That’s a savings of ₹34.1 lakh in interest, and 13 fewer years chained to your mortgage statement.
A Smarter, Not Harder, Approach
“This isn’t about paying more — it’s about paying smarter,” Kaushik emphasizes. “It’s like micro-investing in your financial freedom.”
No risky bets, no drastic lifestyle cuts—just disciplined, manageable extra payments that can get you home (ownership) free.
Homeowners are advised to ditch the defeatist attitude of traditional loan schedules; with Kaushik’s extra-EMI mantra, you can retire your home loan early with nothing more extreme than a bit of consistency. Grandparent jokes about “paying EMIs forever,” take note: your time may just be running out.
