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Home Loan EMI: Just do this and your home loan EMI will become '0'; what is this magical method?

Shikha Saxena | October 10, 2025 8:15 PM CST

In today's inflation, buying a home of your choice requires a loan. Once a home loan is initiated, it continues for a long period. Everyone wants their EMIs to be reduced or eliminated.

The EMI can only be eliminated if you somehow pay it off in full. This is almost impossible, but you can recover the amount of money you invested in EMIs from your savings.

If you invest a portion of your salary in mutual funds through SIPs, you will earn the same amount of profit from the income you invested in EMIs.

Let's understand this with a calculation.

Calculation
First, let's figure out how much money will be spent on your home loan. Suppose someone has taken a loan of Rs 20 lakh for 30 years.

Loan Amount - 20,00,000
Interest Rate - 7.5%
Loan Tenure - 30 Years
At 7.5%, your monthly EMI will be ₹13,984. Over these 30 years, you'll pay ₹3,034,344 in interest. Your total payment will be ₹5,034,344. To pay off your home loan to zero, you'll need to earn this much money over these 30 years.

We need to account for rising inflation when calculating. This means that the value of ₹10 in your pocket decreases every year. Therefore, to achieve a value of ₹5,034,344 after 30 years, we'll need to earn ₹1,300,000 to ₹1,400,000 through SIPs.

Simply put, the value of ₹13,000,000 to ₹14,000,000 will be worth around ₹5 million in the next 30 years. Consider this: something you buy for ₹100 will cost you approximately ₹250 after 30 years.

Now let's figure out how much we'll need to invest in a monthly SIP (SIP) today to accumulate a corpus of ₹14,000,000 after 30 years.

How much will the SIP amount be?
If you want to accumulate a corpus of ₹14,000,000 after 30 years, you'll need to invest ₹4,000 every month. In this calculation, we're assuming a 12% return. The minimum expected return from mutual funds is 12% to 14%.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.