Instagram · May 25, 2026
Video claims extra EMI payment can save 5 years on loan tenure
The video explains that taking an extra EMI payment can significantly reduce the loan tenure, potentially by 5 years, and emphasizes the importance of clearing loans early for financial and mental freedom.
What's right
What's wrong
Breakdown
The claim that paying an extra EMI can reduce the loan tenure is supported by multiple sources (Reference 1, 3, 6, 7, 9, 11, 12). Specifically, paying 13 EMIs instead of 12 (one extra EMI per year) accelerates principal repayment (Reference 12).
The claim that the video displays 'EMI = Rat Race' is also stated in the video's transcript. However, the claim that this extra EMI payment can reduce the loan tenure by exactly 5 years is not universally supported and depends heavily on the loan amount, interest rate, and original tenure.
While it can significantly reduce tenure, a specific 5-year reduction is not guaranteed across all scenarios (Reference 3, 7, 11, 12). The assertion that 'In the first 5-10 years of a loan, only the interest is paid, not the principal' is an oversimplification and generally false.
While early EMIs do have a higher proportion of interest, principal is always paid from the beginning, and the proportion of principal repayment increases over time (implied by loan calculators and general loan amortization principles, though not explicitly stated in the provided snippets). Finally, the claim that '80% of homes in Tier 1 cities are bought on loan' is not verifiable within the provided context. [1][2][3]