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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.)

Unanswered messages, anxious families

Aug 29
6 min read

Mumbai: Over 72 hours after the great Himalayan deluge along the Nepal-Tibet borders, the fate and whereabouts of Mumbai’s mountaineer and medico, Dr. Milind P. Chitaley, his wife Megha and their 61-plus team of pilgrims bound for Kailash Mansarovar Yatra, in Tibet, remain unclear.


Leading mountaineers from Mumbai, Pune and other places, along with Maharashtra and Indian government are working almost 24X7 to get information on the ‘missing’ group that went through Hills & Trails, Andheri for the grueling pilgrimage.


With no trace of the group – they were reportedly in the thick of the monumental disaster that struck on Wednesday catching the world by surprise – many are losing hope.


“He is an experienced mountaineer with over three decades of adventure tours and trekking. For many years he has been organizing tours to the Himalayas and pilgrimage purposes,” a veteran of tall peaks and President of Akhil Maharashtra Giryarohan Mahasangh (AMGM) President Umesh Zirpe told ‘The Perfect Voice’.


Thane resident and retired professor Charuhas Joshi has proceeded to Nepal to help trace his friends, the Chitaley couple and the other pilgrims from different parts of the state.


“The Nepalese Army, various mountaineering associations and Gurkhas are doing a fabulous job. The region where the tragedy occurred has brought back a lot of sludge, debris along with the flood waters. Outside teams for search-and-rescue are not permitted by the Nepal government to avoid confusion,” Joshi told this paper from Kathmandu.


However, he was informed that “chances of any more survivors appear bleak given the mammoth tragedy, but miracles cannot be ruled out” as the families and friends of the group remain tense back home and pray for divine intervention.


Zirpe said that last year, he had visited the picturesque region which has now become a huge disaster zone that has shocked the world. “The pilgrims team was very close to this area and today I have only one confirmed name from Pune. We are optimistic that some positive news will soon emerge…” he trailed off.


He was all praise for the Nepal government which is managing the SAR efforts with its own expert mountaineers - especially the Gurkhas and Sherpas – and external rescue teams have not been allowed for the specialized operations.


Among the Mumbai pilgrims reportedly still missing are PD Hinduja Hospital, Mahim’s Dr. Anand Deshpande and his wife Dr. Gayatri of Nanavati Hospital, Vile Parle and efforts are on to verify other group members. Nevertheless, communication from Nepal and the Tibet Autonomous Region - where the Mansarovar pilgrimage destination is situated - remains a major challenge.


In a related development, activist Anjali Damania said on social media that her neighbour Prerna Kale - who had gone for the same pilgrimage with a Nepali organiser, Richa Tours, overseen by Dr. Chitaley – is also missing.


“Following the natural disaster, her family has not heard from her at all. She last spoke with her family on August 25 at 7 pm, informing them they were heading towards Kailash Mansarovar. We are trying all possible official channels for any information on her,” Damania added.


Unread Messages

Talking to PTI, Dr Chitley’s brother-in-law Sandeep Padhye said, “We were in touch with my sister till August 25, but the messages sent on August 26 remain unread.”


It is still unclear whether the group crossed into China before or during the floods, he said.


As per the itinerary, the group was to drive from Timure to the China border in the early hours of August 26 and reach Mansarovar on Saturday.


“We haven’t got any information from the authorities. An official of the Hills and Trails, a travel company founded by Dr Chitley, has travelled to Nepal to check. Till then, we are keeping our fingers crossed. We have to accept whatever the situation is,” he said.


The group was to return to Mumbai on September 6 after completing their Kailash Parikrama on September 2.


Dr Chitley, who founded Hills and Trails and has led treks to the Himalayas for nearly three decades, had posted a notice outside his clinic, stating it would remain closed until September 6.


State Help

Relatives of Mumbai resident Satish Patankar, who was also travelling in the region, have approached state authorities to help trace their location.


His brother Sanjay told reporters that he had reached Kathmandu on August 23 and spent the following day getting acclimatised and sightseeing before leaving for Timure, a post on the Nepal-Tibet border, on August 25.


“Satish messaged me on the evening of August 25 that his group had reached Timure and was scheduled to cross the border the following day. The group comprised around 27 people,” he said.


He was expected to complete immigration formalities at the border on August 26, Sanjay said, adding that the family believed the group could have still been at the immigration centre when the disaster struck and that the facility was probably completely washed away in the floods.


He said the family was trying to ascertain the whereabouts of the group amid the devastation caused by the disaster.


Final Position

For another Mumbai family, the wait for news has proved equally agonising, with Goregaon resident Rahul Desai telling PTI that his 67-year-old father-in-law Avnish Merchant and four friends are among those missing.


“They left for Kathmandu on August 23 for the Kailash Parikrama through Richa Tours, whose India partner is Hills and Trails. His last message came on August 26 at 7 am saying they were leaving for the border,” Desai said.


“Around 8.30 am, we found the last location from the iWatch of his friend, which indicated that their final position was the check post bridge,” Desai added.


He said the family was tracking all official channels for an update, while emphasising the need for a centralised information system. “It is a difficult situation. It would be better if there is a single-window facility to get information about casualties. There needs to be a structure so that families need not run from pillar to post,” Desai said.


There is a missing list, but there should also be a rescue and fatality list for the distraught family members, he added.


Last call, then silence: Thane father awaits news of missing son

The last phone call of his 28-year-old son still echoes in his father’s mind, a reminder of his excitement to start his journey to Kailash Mansarovar just hours before flash floods in Nepal cut off all contact with his family in Maharashtra’s Thane district.


Abhishek Ghone, a Kalyan resident working for a travel booking portal, had left for Kathmandu on August 24 and called home late Tuesday night to inform his family that his group would begin the journey early the next morning, shortly before the flash floods swept through Rasuwa and other parts of central Nepal on Wednesday.


The family has approached the authorities, but they have not responded with any concrete information, the distressed father said.


In their desperate bid for answers, one of Abhishek’s friends used artificial intelligence (AI) tools to track his location, which suggested he might be in a safe zone, though the family is wary of relying on unverified data, he said.


“My son had planned this pilgrimage for a long time and was excited,” Abhishek’s father said on Saturday, recounting the agonising silence that has followed their last conversation.


He explained that Abhishek had called late Tuesday night to share that his group would set off early the next morning, but the family has not heard from him since.


“We are completely unaware of his whereabouts and deeply concerned, and though we have approached the authorities, they have not yet gotten back to us with any concrete information,” the distressed father said.


The massive flash flood originating in Tibet swept through central Nepal on Wednesday, devastating several towns and villages, washing away critical bridges and crippling a dozen hydropower projects as it gushed downstream, affecting multiple districts.


In their desperate bid for answers, one of Abhishek’s friends used artificial intelligence (AI) tools to track his location, which suggested he might be in a safe zone.


“The information may not be authentic, and we want the authorities to provide verified updates,” Abhishek’s father added.


According to the family, the local tour operator managing the yatra was conveying 70 to 80 pilgrims from across India, who were travelling together across five vehicles when the extreme weather struck.


The family stressed that their sole concern was tracing their son amidst the destruction caused by the mountain torrents.


“We are not angry with the administration or upset. We only want information about our son,” his father pleaded, urging authorities to trace Abhishek in whatever condition he may be.


According to reports, four residents from the Kalyan-Dombivli region were reported missing in Nepal following the flash floods.


-With PTI

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