Lalit, 36, working professional with a home loan of ₹1 crore
Lalit thought 12 % returns beat 8 % loan rates — until the math changed everything.
Lalit had always planned to buy a home, and once the purchase was done and EMIs started, he shifted focus to growing his investments.
“Markets are giving 12-13 %, and the home loan is just 8 %. Why prepay?” he said. “Let’s just invest more.”
But we had a deeper conversation. We discussed how markets don’t deliver steady returns, how risk and volatility matter, and how that 8 % loan interest — fixed and guaranteed — is a real drag on future flexibility.
So we did the math: a ₹1 crore loan at 8 % for 20 years results in a total repayment of ₹2.07 crores.
That’s ₹1.07 crore in interest alone!
We built a plan:
- ₹5,000 extra EMI per month
- 50 % of annual bonus — roughly ₹5 lakhs — used for prepayment
This cut his loan tenure from 20 to around 9 years — and saved him ₹58 lakhs in interest. We also helped him structure it as a MaxGain account, offering both savings and emergency liquidity.
Lalit realised it wasn’t about chasing the highest return. It was about smart risk management — and peace of mind.