The Economic Times

Your home loan is a trap: CA explains how a Rs 50 lakh loan can cost you over Rs 1 crore

A chartered accountant warns that home loan borrowers often overlook the total repayment, which can double the initial amount. He highlights that early EMIs heavily favour interest, delaying equity building. Instead of investing, aggressive prepayment is advised for guaranteed, tax-free returns. A strategy of lower EMIs with substantial prepayments, or annual extra payments, can save lakhs and significantly shorten loan terms, ultimately offering financial freedom.