For many Indian homeowners, prepaying a loan feels like a win. But fintech founder Dwipa Shah argues that treating debt as a tool—not a burden—could unlock far greater long-term wealth.

In a LinkedIn post, Shah broke down four approaches to handling home loan debt using a scenario familiar to many middle-class professionals: a ₹25 lakh outstanding loan, 20 years left to pay, ₹3 lakh in surplus cash, and no tax benefit under the new regime. Advertisement

Option 1: Prepay ₹3 lakh to reduce the EMI. The monthly burden drops by ₹2,509, and interest savings amount to ₹3.02 lakh over 20 years. It feels safer—but doesn’t grow wealth.

Option 2: Prepay ₹3 lakh, reduce EMI, and invest the ₹2,509 saved every month into a mutual fund SIP. After 20 years, that investment could grow to ₹28 lakh. Deb

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