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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.)

Thirty-five pc work completed

Writer: Bhalchandra Chorghade
Bhalchandra Chorghade
May 18
3 min read

Key flyover arms to open by September

Mumbai: The Kalamboli Integrated Infrastructure Project, one of Navi Mumbai’s most strategically significant traffic decongestion initiatives, has achieved nearly 35 percent progress as per schedule, with Maharashtra State Infrastructure Development Corporation (MSIDC) officials confirming that Arm 1, Arm 4 and Arm 5 of the interchange are targeted to be opened by September, 2026.


The project is being developed to transform the heavily congested Kalamboli Junction into a fully signal-free, multi-level transport interchange capable of handling massive passenger and freight movement across the Mumbai Metropolitan Region (MMR). Located at the intersection of critical national and regional transport corridors, Kalamboli acts as a gateway connecting Mumbai, Pune, JNPA, and several industrial and logistics zones.


Officials from the MSIDC stated that the opening of the first three arms will provide immediate operational relief by streamlining some of the most congested traffic movements at the junction. “Work on the project is progressing as per schedule and approximately 35 percent progress has been achieved. Arm 1, Arm 4 and Arm 5 are targeted to be operational by September. These stretches are critical because they handle major freight and passenger traffic flows that currently face severe congestion,” the officials said.


The significance of these three arms lies in the specific traffic movements they are designed to manage. While Arm 1 has been planned to facilitate traffic movement from Shil Phata towards the Steel Yard area, improving connectivity for industrial and local commercial transport operating in and around Kalamboli’s logistics ecosystem, Arm 4 is designed for traffic movement from Mumbai towards JNPA, one of India’s busiest container ports. This arm is expected to substantially ease the movement of container trucks and heavy commercial vehicles transporting cargo to and from the port region.


Arm 5, meanwhile, will cater to traffic moving from Mumbai towards Pune, helping reduce one of the most heavily congested outbound traffic corridors in Maharashtra, particularly during peak travel periods and freight movement hours.


According to experts, the phased opening of these connectors could significantly reduce travel delays and signal waiting times, especially for long-haul cargo vehicles and inter-city passenger traffic. The project has become increasingly important as Navi Mumbai evolves into a major logistics, warehousing and infrastructure hub with the upcoming Navi Mumbai International Airport, Dedicated Freight Corridor connectivity and expanding industrial clusters expected to sharply increase vehicular movement over coming years.


The Kalamboli project includes multiple flyover arms and underpasses aimed at separating conflicting traffic streams and ensuring uninterrupted vehicular movement without signal stoppages. The infrastructure upgrade is also expected to improve road safety, reduce fuel wastage caused by idling traffic and lower vehicular emissions generated due to prolonged congestion.


MSIDC officials said executing such a large-scale project at one of Maharashtra’s busiest transport intersections remains a major engineering and logistical challenge. Construction activities are being carried out while ensuring uninterrupted highway traffic movement, requiring extensive coordination with agencies such as the City and Industrial Development Corporation (CIDCO), the National Highways Authority of India (NHAI) and local administrative bodies.


“The Kalamboli Integrated Project is not only a traffic improvement exercise but also an economic infrastructure intervention. Once operational, it will strengthen regional connectivity between Mumbai, Pune, JNPA and Navi Mumbai while supporting the state’s long-term logistics and industrial growth,” officials added.


Urban planners believe the project will eventually emerge as one of the most critical transport infrastructure assets in Navi Mumbai, particularly as freight movement, port-linked transportation and airport connectivity continue to expand across the region.


The September opening of Arm 1, Arm 4 and Arm 5 is therefore being viewed as the first major operational milestone in a project expected to redefine mobility across one of Maharashtra’s busiest transport corridors.

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