Biweekly EMI Method Promises Big Savings for Homebuyers | Updated Guide

A new repayment trend is helping borrowers clear home loans faster without raising EMI size. Experts say a simple shift in payment timing unlocks major interest savings.

Home loans remain long and expensive commitments, especially as interest rates stayed elevated through 2024 and early 2025. Many homebuyers believe reducing EMI burden requires refinancing or higher payments. But a Business Today article published on 7 December 2025 revealed a simple home loan EMI hack shared by tax and finance expert CA Nitin Kaushik. 

The method reduces interest outgo by increasing payment frequency rather than EMI amount. For borrowers aiming for home loan savings without stress, this technique is rising as a practical, behaviour-driven solution.

How the Biweekly EMI Method Works and Why It Saves Money?

The home loan EMI hack divides a single monthly EMI into two half-payments every 15 days. Instead of 12 EMIs a year, borrowers effectively pay 13 full EMIs, as 26 half-payments accumulate into one complete extra instalment. This speeds up principal reduction and lowers the amount on which interest is calculated.

Kaushik’s illustration shows that for a ₹50–60 lakh home loan at 8–9 percent interest, borrowers may achieve:
 

A 2025 LoansJagat home-loan behaviour article also found that even modest changes in repayment timing can strengthen eligibility and reduce interest load for long-tenure borrowers.

Borrowers must confirm whether their bank or housing finance company allows biweekly deductions, as policies differ among lenders.

How India’s Loan System Evolved to Support This Method?

India’s repayment structures have slowly shifted from rigid, monthly EMI cycles to more flexible options. Regulatory guidance from the Reserve Bank of India, including the Master Direction – Interest Rate on Advances updated on 22 March 2024 (Serial No. IR 14/2024, available under RBI.org.in > Notifications > Master Directions), requires lenders to maintain transparent disclosure of repayment terms while giving borrowers freedom to match payments with cash flows.

Digital lending models have also enabled more rapid, automated deductions, allowing borrowers to make more frequent payments with minimal manual effort.

Financial behaviour studies show the trend accelerating:
 

Another publication in Mint throughout 2025 highlighted rising EMI stress among urban borrowers, prompting more individuals to seek home loan savings techniques that do not require renegotiating interest rates.

These shifts show why the biweekly method fits naturally into India’s evolving repayment culture.

What Experts and Lenders Say About the Trend?

Kaushik told Business Today that the method succeeds by shortening the interest cycle rather than altering the EMI amount. Lenders say customers increasingly prefer repayment structures that align with salary dates or biweekly cash flow patterns. Mortgage advisors also warn that borrowers must automate transfers to avoid missed payments, as consistency is key for unlocking home loan savings.

Industry experts add that this repayment style is gaining popularity among young buyers who want faster debt freedom without increasing their monthly budget.

Conclusion

The biweekly EMI method is emerging as a powerful tool for homebuyers seeking meaningful home loan savings. With more lenders offering flexible schedules, this strategy may soon become a mainstream repayment option across India.
 

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LoansJagat Team

‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.