This Simple EMI Trick Can Cut Your Home Loan Tenure by 6–7 Years, Says CA Expert

Smart financial planning can significantly reduce your home loan tenure and help you achieve financial freedom much earlier than expected. According to tax and finance expert CA Nitin Kaushik, a simple change in how borrowers pay their EMIs could cut several years off a typical 20 to 30-year home loan while saving lakhs of rupees in interest—without increasing the monthly EMI amount.

In a recent post on X (formerly Twitter), Kaushik shared what he described as a “silent home loan hack.” Instead of paying the EMI once a month, borrowers can split it into two smaller payments every 15 days. While the total monthly outflow remains the same, this small adjustment works powerfully in reducing loan tenure.

Kaushik explained that under the traditional repayment system, borrowers make 12 EMIs per year. However, with the biweekly payment method, borrowers end up making 26 half-payments annually, which effectively equals 13 full EMIs each year. This extra payment directly reduces the principal faster, lowering the outstanding balance and, in turn, the total interest charged over the loan period.

For a typical home loan of ₹50–60 lakh at an interest rate of 8–9%, this strategy can help borrowers reduce their loan tenure by 6 to 7 years and save between ₹12–18 lakh in interest payments, depending on the remaining tenure and loan rate.

Importantly, this technique does not require any change in the interest rate or renegotiation of the loan terms—only a change in the payment frequency. However, Kaushik cautioned borrowers to first confirm with their bank or housing finance company whether biweekly EMI payments are allowed, as policies differ across lenders. Even though most lenders calculate interest on a monthly basis, reducing the principal more frequently still results in significant interest savings.

At a time when homebuyers are dealing with rising EMIs, increasing living expenses, and long-term financial commitments, this simple behavioural shift offers a practical and effective way to move closer to debt-free homeownership.