22 with ₹16L education loan - debt payoff vs SIP?
22, software engineer in India, currently earning 60k/month + 25k quarterly bonus. I have an education loan of 16L total (14.5L principal + 1.5L accrued interest) at 8% p.a., with moratorium till Jan 2028. I have no financial dependents, my father will be working for another 3–4 years, and in an emergency my parents can support me anytime. I also plan to avoid lifestyle inflation (as much as possiblke).
I currently have 46k invested, and plan to add 35k in Oct + 20k in Nov, taking the portfolio to 1L.
I’m comparing 2 strategies:
Plan 1 — SIP + Loan:
Pay 15k monthly toward the loan until Mar 2027, then 23k/month till Jan 2028; from Jan 2028 pay 32k/month, increasing 5% every 6 months. Start a ₹15k SIP from Jan 2027, increasing 5% every 6 months, assuming 10% CAGR.
Plan 2 — Debt First:
No SIP initially. Pay 30k to 32k/month till Mar 2027, then 40k-45k/month + 25k extra every quarter till Jan 2028. From Jan 2028 pay 55k/month, increasing 5% every 6 months. Once the loan is cleared, redirect the same cash flow into investments.
My salary may become 72–78k/month from Mar 2027 (internal hike), and I’m assuming I could switch before Jan 2028 and reach roughly 85-95k/month. (assuming)
The rough math suggests Plan 2 could make me debt-free around July 2029 and save ~1.3L in interest versus keeping the loan longer, but Plan 1 gives equity more time to compound.
What would you do in my situation: aggressively eliminate the 8% education loan first, or keep a SIP running while paying the loan? Also, how would you balance emergency funds vs prepayment given my family backup and expected salary growth?
Need serious advice