The Question Every HNI Asks

When a client can pay ₹5 Cr in cash, should they? Our wealth planning model consistently shows that the answer depends on the opportunity cost of that capital.

Scenario Analysis

We modeled three scenarios across a 5-year horizon with a hypothetical ₹5 Cr property in Gurgaon:

Scenario A: 100% Lump Sum

  • No EMI burden
  • No tax benefit
  • Lock-in of ₹5 Cr capital

Scenario B: 50% Loan at 8.5% (₹2.5 Cr)

  • Monthly EMI: ~₹31,000
  • Tax deduction on interest: Up to ₹2L/year
  • ₹2.5 Cr freed for investment in diversified portfolio

Scenario C: 80% Loan at 8.5% (₹4 Cr)

  • Monthly EMI: ~₹49,600
  • Maximum tax leverage
  • ₹4 Cr available for higher-yield investments

The Verdict

For clients with a diversified portfolio generating 12–15% returns, Scenario C consistently outperforms. For clients with no secondary investment, Scenario A wins.

Use our EMI and ROI calculators to model your own numbers at TSS Global Tools Hub.