A borrower with a ₹90 lakh home loan at 9% interest has expressed confusion over the minimal reduction in principal—only ₹6 lakh—despite paying ₹45 lakh across 60 EMIs. This situation arises from the amortization structure of home loans, where early payments predominantly cover interest rather than principal. The borrower’s monthly EMI is ₹75,528, and over 25 years, the total repayment could reach approximately ₹2.26 crore, with interest alone amounting to around ₹1.36 crore. To mitigate high interest costs, the article suggests strategies such as prepaying the loan and increasing EMIs annually. It emphasizes that long tenures, while offering lower monthly payments, lead to greater total interest payments. The article also compares the benefits of prepayment versus investing in Systematic Investment Plans (SIPs), advising borrowers to consider their financial goals and risk tolerance when deciding on their approach.