Home Loan Tips: Every penny of a home loan including interest will be recovered, understand this smart trick carefully..

Home loans have become very helpful for people in today's time. Those people who were not able to raise lakhs of rupees for a house, are now easily fulfilling their dream of having a house through a home loan. But after taking a home loan, it has to be repaid along with the interest. Since it is a loan for a long period (15, 20, 25, 30 years), people start feeling bad about paying their EMI every month. Apart from this, you pay double to triple the amount of the home loan as interest. Here know the method by which you can easily recover every penny of the home loan including the interest.

First, understand how much interest you pay in return for the loan.

Suppose you have taken a loan of 30 lakhs from SBI Bank for 25 years. You have got a home loan from SBI at an interest rate of 9.55%. In such a situation, according to the SBI home loan calculator, you will have to return Rs 78,94,574 instead of Rs 30 lakh to the bank in 25 years. If you take a loan for 20 years, you will have to return Rs 67,34,871 and if you take a loan for 15 years, you will have to return Rs 56,55,117 at the rate of 9.55%.

The longer the tenure, the higher the interest

One thing to understand in the case of home loans is that the longer the tenure you keep, the more interest you will have to pay to the bank and you will incur a greater loss. However, your EMI becomes shorter with a longer tenure. Therefore, try to keep the loan tenure short.

This is how you can recover a home loan

If you want to recover a home loan, then you will have to start SIP. For this, as soon as the EMI of the home loan starts, you should start monthly SIP for the same tenure. If you start SIP with 20-25% of your EMI amount as soon as the home loan starts, then you will recover the entire amount of the home loan including the principal amount and interest. But the condition is that you have to start your SIP as soon as the home loan starts and run it for the same duration as the loan tenure.

Understand from the calculation how the amount will be recovered.
You took a loan of Rs 30 lakh for 20 years at an interest rate of 9.55%. The EMI was Rs 28,062. On this loan, you will have to pay a total of Rs 67,34,871 including the principal amount and interest, out of which Rs 37,34,871 will be only for interest. Now you will have to start an SIP of 25% of the EMI amount, which will be Rs 7,015. You will also run this SIP for 20 years. If you get a return of 12% on this SIP, then in 20 years you will get Rs 70,09,023 from SIP, which will be more than the total amount of your loan. If the return is even better, then you will withdraw more money from SIP.

Understand this thing well.

However, before investing in mutual funds, you should understand that this scheme is subject to market risks. It does not give a fixed return. The return is also given according to the market. Experts consider its average return to be 12 percent in the long term. Sometimes it can be even more than this.

Disclaimer: This content has been sourced and edited from ZEE Business Hindi. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.