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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.)

Your Price Is Not The Problem

Jun 12
3 min read

Every time a client pushed back on his price, he folded. Not immediately — he had enough experience to hold for a moment, to pause, to appear as though he was considering. But he always folded. A ten percent reduction here. A complimentary add-on there. A revised proposal that quietly gave away more than it should have. He told himself it was strategy. It was not. It was fear wearing the costume of flexibility.


He was a founder with over a decade of experience, a business turning over well above five crores, a team that believed in him, and clients who genuinely valued his work. On paper, everything looked right. And yet, every negotiation felt like a battle he was losing before it began. The moment a client said “can you do better on the price,” something shifted inside him. The confidence that carried him through everything else simply disappeared.


“He was not discounting his fees. He was discounting himself — and the client could sense it before he said a word.”


This is where most founders misread the problem. They believe pricing resistance is a market issue, a competition issue, or an economic issue. Rarely do they consider that it might be a personal brand issue. But here is the truth that changes everything — when your personal brand is strong, your price becomes a reflection of your perceived value. When it is weak or absent, your price becomes a negotiation. Every single time.


When we began working together, the first thing I noticed was not his business. It was him. The way he entered a conversation. The way he presented himself — online and in person. He was accomplished, no question. But nothing about his presence said so before he opened his mouth. His online profiles were generic. His communication was hesitant in moments that called for conviction. He had built a strong company but had never invested a single day in building himself as a brand.


We started from the inside. His sense of authority, how he carried himself, how he communicated his value without apologising for it. Then we moved outward — restructuring how he showed up digitally, aligning his narrative across every touchpoint so that by the time a potential client sat across from him, they already believed in his worth. The price conversation changed not because he rehearsed a script, but because he had stopped being invisible.


“The strongest negotiation tool a founder can carry into any room is a personal brand that has already done the convincing.”


Within weeks, something shifted. A client who would have previously pushed back accepted his proposal without a question. A partnership discussion he expected to be difficult closed faster than any before it. He did not change his fees. He changed how people perceived the person behind those fees. That is the leverage a personal brand gives you — it negotiates on your behalf before you say a single word.


If you are a founder or business owner who has ever reduced a price you knew was right, asked yourself honestly — was that a market problem, or a brand problem? Because if the right people truly understood your value, the number would never be the obstacle.


I work with founders and business owners to build personal brands that command the room, hold the price, and convert the right opportunities. If you have been questioning your positioning or wondering why deals that should close easily are not — let us have a focused thirty-minute brand consultation. I take a maximum of four of these conversations each week. Book yours at: https://calendly.com/divyaaadvaani/founder-brand-audit


(The writer is a personal branding expert. She has clients from 14+ countries.

Views personal.)

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