Home Loan EMI: Manage your home loan with SIP, you will not have to pay a single penny of interest from your pocket..

There is a special way to easily manage the installments of the loan taken for the home. You can easily manage your home loan with SIP, then you will not have to bother about the EMI of your loan. A special investment process can reduce the burden of your loan's monthly installments and you can have a better option to make payments (home loan repayment tips) without using your money.

First of all, you have to do this work-

To manage a home loan with SIP, you have to invest a small amount regularly in a fund. Over time, this fund gradually grows and can be used to cover the loan installments (Home loan EMI).

Get a better investment opportunity -

Many people dream of buying a house, but avoiding the loan and interest associated with it is also a big challenge. Many people want to pay as little interest as possible on the loan. In such a situation, there is a way that can help you to cover the interest spent on the loan.

A special investment like Mutual Funds SIP (Systematic Investment Portfolio) can not only give you good returns, but it can also give you back the money equal to the interest you pay on the loan. This method not only gives you a better investment opportunity but also reduces the worry of debt. This means that you can manage your hard-earned money and the money paid to the bank or financial institution in a better way.

Calculation of interest and investment on loan -

If a person takes a loan of Rs 50 lakh for 20 years, then he has to pay a large amount every month. The interest rate on the loan is 9 percent (home loan interest), and according to this, an installment of about Rs 45,000 will have to be paid every month. During 20 years, a total of about Rs 58 lakh will be paid as additional interest on this loan.

This means that after 20 years, a total of Rs 1.08 crore will be paid, which includes both the principal loan and interest (home loan interest rate). If invested properly, such expenses can be controlled properly, such as by investing regularly, good returns can be obtained.

Raise a large amount from small savings -

If you had made regular investments along with the home loan, it could have covered the interest on your loan to a great extent. For example, if you had deposited a small amount of 10 percent of your home loan every month like Rs 4,500 as an investment (SIP investment) and this investment lasted for 20 years, then you would have got a good return of 14 to 15 percent on average (average SIP interest).

With this return, you could have covered the cost of your loan. In 20 years, this kind of investment could have given you a huge amount of Rs 65 lakh, out of which Rs 53 lakh would have come mainly from returns (SIP return) and not from your investment. In this way, you could have raised a large amount from small savings, which would have helped you in fulfilling your financial goals in the future.

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