Archive · 4 Oct 2025
SIP Strategy Beats Home Loan Interest: Advisor's Tip
A financial advisor shared a smart investing tip that helped a couple with a home loan.
The wife got a salary raise, but instead of spending it, she started investing a small amount monthly.
Over time, this investment is projected to grow large enough to cover all the interest on their home loan.
This approach is presented as a better alternative to aggressively paying off the loan early.
The idea is to keep the money working for you instead of giving it all to the bank.
A couple in Bengaluru used strategic investing to counter their home loan interest.
They took an ₹80 lakh home loan at 8.5% interest.
The wife received a ₹10,000 monthly salary increase.
Instead of spending it, she started a SIP in a large-cap mutual fund.
The SIP investment is projected to grow enough to offset loan interest over 20 years.
- Who
- Sujith SS, founder of Moneydhan.com and a SEBI-registered investment advisor, and a Bengaluru couple.
- What
- A couple used a strategic SIP to offset home loan interest.
- When
- In 2022 the couple took the home loan
- Where
- Bengaluru
- Why
- To neutralize the interest burden of a home loan without extra repayments.
Prepaying Loans
Strategic Investing
Control of Funds
Prepaying Loans
Prepaying loans means money vanishes into the bank.
Strategic Investing
Investing keeps money in your control for future opportunities.
- Financial Advisor
- Sujith SS, Moneydhan.com founder
- Loan Amount
- ₹80 lakh
- Loan Interest Rate
- 8.5%
- Monthly EMI
- ₹69,426
- Salary Hike
- ₹10,000 per month
- SIP Investment
- ₹8,700 per month
- Investment Growth
- ₹86.9 lakh (over 20 years at 12% CAGR)
- Home Loan Interest Paid
- ₹86.6 lakh