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By:

C.S. Krishnamurthy

21 June 2025 at 7:45:51 pm

Let Your SIP Fight Your EMI

When Ramesh bought his first home, he was delighted. The keys were finally in his hand, but another number immediately occupied his mind: the monthly EMI. “Now that I have some money left after paying my EMI, what should I do with it?” he asked his financial adviser. “Or should I start investing? And if I invest, won’t I be carrying a loan unnecessarily?” A home loan can run for 15, 20 or even 25 years, while the desire to become debt-free keeps growing. But does a borrower necessarily have...

Let Your SIP Fight Your EMI

When Ramesh bought his first home, he was delighted. The keys were finally in his hand, but another number immediately occupied his mind: the monthly EMI. “Now that I have some money left after paying my EMI, what should I do with it?” he asked his financial adviser. “Or should I start investing? And if I invest, won’t I be carrying a loan unnecessarily?” A home loan can run for 15, 20 or even 25 years, while the desire to become debt-free keeps growing. But does a borrower necessarily have to choose between repaying the loan faster and investing for the future? What if both could be pursued simultaneously? Could a Systematic Investment Plan (SIP) create a corpus that eventually helps reduce or even close the home loan? The idea merits consideration. A SIP is not a magic formula for becoming debt-free, but it can create a second financial track alongside the regular EMI. Two tracks, one objective Consider an illustration. Suppose a borrower takes a home loan of ₹50 lakh at an assumed interest rate of 8.5 pc for 20 years. The EMI would be around ₹43,400.
Instead of putting every available rupee into the loan, the borrower could consider investing ₹10,000 a month through a SIP, provided the household cash flow permits it. At an assumed annualised return of 12 pc, a ₹10,000 monthly SIP could grow to roughly ₹8.24 lakh in five years, ₹23.23 lakh in 10 years, ₹32.22 lakh in 12 years and ₹50.45 lakh in 15 years. While these are not guaranteed returns, the possibility of higher returns is also not ruled out. Meanwhile, the outstanding home loan would gradually decline through EMIs. Over eight to 10 years, the SIP corpus could become substantial enough to give the borrower an additional financial option. The important point is not to decide today exactly when the loan will be closed, but to review the position when the time comes. Why not simply prepay? Prepaying the home loan provides a relatively certain benefit because every rupee of principal repaid reduces future interest outgo, subject to the loan terms and applicable rules. The SIP serves a different purpose. It creates a financial asset and, over the long term, gives the investor an opportunity to participate in the growth potential of financial markets. The decision point comes later The strategy need not have a fixed finish line. After eight to 10 years, the borrower can review the situation rather than mechanically redeeming the SIP. What is the outstanding loan, the investment value and its performance? What are the prevailing market conditions? Is part-prepayment more appropriate than full repayment? These questions can guide the decision. If the corpus has grown sufficiently and circumstances are favourable, the borrower may consider using part of it to reduce the outstanding loan or, if appropriate, redeeming enough to close the loan completely. If the investment is better retained for the long term, there is no compulsion to exit merely because 10 years have passed. The strength of the strategy lies in this flexibility. Think beyond the loan A long-term SIP is not merely a future home-loan repayment fund. It can become a wealth-creation vehicle in its own right. Compounding rewards patience. A disciplined monthly investment held for the long term can help build a corpus for retirement, children’s education, other life goals or financial independence. Thus, while the home loan moves towards closure through the EMI, the investment has the opportunity to grow alongside it. Once the loan is eventually closed, the EMI disappears. Instead of allowing that money to quietly disappear into lifestyle expenses, the borrower can redirect some or all of the former EMI towards investments. A sensible balance This approach is not a universal prescription. Some borrowers may prefer aggressive loan prepayment, while others may find the combination of EMI and SIP more suitable. The SIP amount should also be comfortable. If ₹10,000 strains the monthly budget, start with less. The strategy should strengthen financial security, not create financial pressure. Adequate emergency savings and appropriate insurance should also form part of the overall financial plan. The larger lesson is simple: a home loan need not automatically put wealth creation on hold. With disciplined cash-flow management, a long-term investment approach and periodic reviews, the EMI can continue paying for today’s home while the SIP works towards tomorrow’s financial freedom. In the end, the question need not be, “Loan or investment?” It can be: “How can I use both wisely?” Disclaimer: “Mutual funds are subject to market risks. Read all scheme-related documents carefully.” (The writer is a retired banker and author. Views personal.)

Polluted tidal inflows threaten flamingo lake

Writer: Bhalchandra Chorghade
Bhalchandra Chorghade
Jun 22
2 min read

Navi Mumbai: Fresh scientific tests have raised serious concerns over the deteriorating health of DPS Flamingo Lake at Nerul in Navi Mumbai with polluted creek water entering the wetland during high tides emerging as a major threat to the fragile ecosystem that forms part of the Ramsar-listed Thane Creek Flamingo Sanctuary (TCFS).


The latest laboratory analysis of water collected from the tidal inflow channel has revealed contamination levels far exceeding permissible standards, adding to fears that worsening water quality may be contributing to the sharp decline in flamingo sightings at the wetland this season.


According to the test results, the inflowing water recorded Total Dissolved Solids (TDS) of 19,600 mg/l, more than nine times the permissible limit of 2,100 mg/l prescribed under IS 2490:1974 standards for inland surface waters. The sample failed to meet the required water quality norms.


The test was commissioned by environmental activist Sandeep Sareen of the Navi Mumbai Environment Preservation Society and NatConnect Foundation director B N Kumar.


The findings come amid growing global concern over the degradation of wetlands. The UNEP-DHI Centre for Water and Environment, in its report Wetlands: The Unsung Heroes of the Planet, has warned that wetland loss has accelerated since 2000 due to pollution, habitat degradation and unsustainable human activities, resulting in steep declines in species dependent on these ecosystems.


Experts note that flamingos are particularly vulnerable to changes in water quality because they rely on a delicate balance of salinity and water chemistry that supports algae, diatoms and microscopic invertebrates—the primary components of their diet.


The latest results also reinforce concerns raised by earlier studies commissioned by NatConnect Foundation. A water sample collected from DPS Flamingo Lake in March recorded an alarming TDS level of 21,720 mg/l. Another sample collected in April from a drain discharging into the wetland showed TDS levels of 7,950 mg/l. The April analysis also revealed a Biochemical Oxygen Demand (BOD) of 36.4 mg/l, significantly exceeding permissible limits. All three samples failed to conform to prescribed inland water quality standards.


Environmentalists warn that the cumulative impact of polluted tidal inflows and the spread of extensive blue-green algal mats could have serious ecological consequences for the wetland.


“Flamingos can tolerate natural salinity, but they cannot thrive in waters carrying a cocktail of sewage, urban runoff and other contaminants. The deteriorating water quality is steadily eroding the lake’s ecological balance and shrinking its food base,” Sareen said.


Kumar stressed the need for urgent conservation measures. “The continuing pollution underscores the urgent need to expedite the final Government Resolution granting Conservation Reserve status to DPS Flamingo Lake and ensure stronger legal protection,” he added.

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