Using SIPs to prepay your home loan: Is it a genius strategy you should try or a gamble you should avoid?
Last Update Date: 06-10-2026
Published by The Economic Times
Abhishek Kumar's role: Quoted
Abhishek Kumar cautioned that the approach carries market risk because investments may not beat the loan rate, and said it works only with disciplined, consistent investing.
More of Abhishek's views on debt and loans
The Economic Times looks at a strategy of taking a longer home loan tenure and investing the EMI saving through mutual fund SIPs to pay off the loan later. It walks through a historical example and explains the risks, especially if investments lag the loan rate, and the role of tax deductions.
Publisher source
Using SIPs to prepay your home loan: Is it a genius strategy you should try or a gamble you should avoid?