Hey All,
This post is in continuation to - Home Loan Repayment Vs Crypto Investment - What to Choose? - Part1. In part1 we discussed the options whether I should be investing $17K+ in crypto or should I use that money to pay off my home loan debt i.e. make a prepayment towards my home loan. At the same time we also compared the key pros and cons of both options to understand their long-term impact. Here is the recap of that table as a refence point.
Home Loan Pre-Payment vs Crypto Investment...
| Factor | Home Loan Pre-Payment | Crypto Investment |
|---|---|---|
| Amount Used | ₹15,00,000 | ₹15,00,000 |
| Risk Level | Very Low | Very High |
| Guaranteed Return? | Yes — Interest saved is guaranteed | No — Market-dependent, volatile |
| Emotional Benefit | Peace of mind, and then there is reduced EMI/tenure | Excitement, potential high returns is less time |
| Financial Impact | Saves interest cost over remaining tenure | Can multiply or we can lose significant portion maybe 50% or even more there is no guarantee with investment in crypto |
| Expected Outcome - Conservative | Saves around 8% annual loan interest effectively | Could fall another 20–40% in a bear phase |
| Expected Outcome - Optimistic | Steady but limited benefit | Could grow 2×–5× and even much more if we hit bull cycle i.e. bull returns |
| Liquidity | Low (once paid, can’t take it back easily) | High (you can sell anytime) |
| Future EMIs | Reduces EMI count or monthly EMI | No effect on loan burden |
| Stress Level | Low — debt reduces | High — market fluctuations daily |
| Ideal For | Stability, guaranteed savings, reducing long-term burden | High-risk appetite, long-term conviction in crypto |
A decision has finally been made, and I had my own reasons to move in that direction. Have a look at my home loan status before making the prepayment.
Loan Term Pending - 106 Months
EMI - Rs. 72,437/-
Rate of Interest - 7.5%
And this is the status after making the prepayment of Rs. 15 Lakhs. Yes there is a huge difference in the loan tenure that got reduced from 106 months to 70 months now. Here is now my current status of my home loan
Loan Term Pending - 70 Months
EMI - Rs. 72,437/-
Rate of Interest - 7.5%
Now, let’s break down some simple maths to explain why I ultimately chose to pay off my debt.
EMIs [Equated Monthly Instalment] Reduced
Before: 107 EMIs left
After: 70 EMIs left
Loan Completion Percentage
Before: ~51%
After: ~67%
Remaining Loan Duration
Before: 8.8 years
After: 5.8 years
The Loan now closes 3 entire years earlier. Finally the total amount of money saved here.
Amount Saved in EMI Value
Each EMI = ₹72,437
Total EMI Saved - 37
Total money Saved - 37 × 72,437 = ₹26,80,169
In terms of USD - ₹26,80,169 = USD 30K+ approximately. This is a huge amount, and I didn’t want to risk it by investing in crypto, especially when the benefits of doing a home-loan prepayment were so clear and guaranteed. And not to forget the peace of mind that comes from reducing years of EMI burden is priceless. Well this should be it for todays post on - "Home Loan Repayment Vs Crypto Investment - Part2 - Decision TAKEN..." Let me know your views in the comment sectione bleow... cheers
Image Courtesy:: hdfc home loan, etmoney
Best Regards
Paras