How One Extra EMI a Year Can Close Your 30-Year Home Loan in Just 17 — No Big Sacrifices Needed
How One Extra EMI a Year Can Close Your 30-Year Home Loan in Just 17 — No Big Sacrifices Needed
For many Indian families, a home loan means a 25- to 30-year financial commitment, often stretching well into retirement. But what if you could end that debt 13 years early — and save over ₹34 lakh in interest — without putting pressure on your monthly budget?
Chartered Accountant and personal finance expert Nitin Kaushik has revealed a surprisingly simple strategy: just pay one extra EMI every year.
🏡💣 Want to finish a 30-year home loan in 17 years… without selling a kidney?
— CA Nitin Kaushik (@Finance_Bareek) July 27, 2025
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.
A thread that banks won’t tell you:
🧵👇#stockmarketscrash… pic.twitter.com/6vXZIXnmO9
Why a 30-Year Loan Isn’t Always a Bad Idea
Most people avoid long-tenure loans assuming they’ll pay much more interest. But Kaushik explains that a 30-year loan has one big advantage: lower EMIs, which offer more flexibility.
Example:
- Loan amount: ₹50 lakh
- Interest rate: 8% per annum
- 30-year EMI: ₹36,688
- 20-year EMI: ₹41,822
- Monthly difference: ₹5,134
That monthly cushion of ₹5,134 can be the key to clearing your loan faster.
🎯 Why it works like a charm:
— CA Nitin Kaushik (@Finance_Bareek) July 27, 2025
💸 EMIs are front-loaded with interest
💥 So early principal reductions = bigger long-term savings
🔁 It’s not about paying more—it’s about paying smarter
Think of it like micro-investing in your freedom.
The Trick: Use That Extra ₹5,134 Wisely
Instead of spending the surplus, Kaushik suggests saving it and making one additional EMI payment every year — ideally from your bonus or annual raise.
- Monthly savings: ₹5,134
- Yearly savings: ₹61,608
- Cost of one EMI: ₹36,688
With this saved amount, you can easily pay one extra EMI each year — and that amount goes directly toward reducing your loan principal.
The Big Impact
Here’s how much difference it makes:
Without extra EMI:
- Total interest: ₹82.1 lakh
- Loan tenure: 30 years
- Total outgo: ₹1.32 crore
With 1 extra EMI/year:
- Interest drops to ₹48 lakh
- Loan tenure reduces to 17 years
- Interest saved: ₹34.1 lakh
- Years saved: 13
📣 Final Word:
— CA Nitin Kaushik (@Finance_Bareek) July 27, 2025
Want to truly own your home?
Don’t just rely on bank schedules—hack the system with extra EMIs.
✅ No lifestyle cuts
✅ No risk
✅ Big long-term reward
Who’s ready to retire their home loan early? Comment below 👇
Smarter, Not Harder
“You don’t have to stretch your finances or change your lifestyle,” Kaushik says. “It’s about paying smart, not paying more.”
With just one small move a year, you reduce stress, stay within your comfort zone, and finish your loan much earlier. No risky investments, no big sacrifices — just a disciplined, thoughtful approach to your EMI plan.
