SIP will reimburse your home loan, and the entire amount including interest will be recovered, know what you have to do
A home loan is a loan that dominates a person as a burden for many years. Through a home loan, you buy property for yourself, but you pay for it with a very high interest. The longer the loan tenure, the higher the interest. In such a situation, if you calculate, many times the property costs you twice the price or even more. But if you do not have a lump sum amount to buy a house, then the loan is also an option. In such a situation, instead of regretting it, it is better to somehow reimburse the amount spent in repaying the home loan. One way of this is SIP. If you want, you can recover the entire amount of the home loan through SIP. Understand what you have to do.
Suppose you have taken a loan of 30 lakhs from SBI Bank for 25 years. The interest rate of home loans in SBI is 9.55%. In such a situation, according to the SBI home loan calculator, you will have to return Rs 78,94,574 to the bank in 25 years. If you take a loan for 20 years, then you will have to return Rs 67,34,871 and if you take a loan for 15 years, then you will have to return Rs 56,55,117 at the rate of 9.55%. The EMI becomes smaller due to the longer tenure, but you have to return a higher price in exchange for the loan.
If you want to recover the home loan, then you can do it through mutual fund SIP. For this, as soon as the EMI of the home loan starts, you should start a monthly SIP for the same tenure.
To recover the amount of home loan including the principal amount and interest, you should start SIP with 20-25 percent of the EMI amount. With this, you will easily make as much corpus by the end of the home loan as you will pay to the bank.
Total home loan: Rs 30 lakh Tenure: 20 years Interest rate: 9.55% per annum EMI: Rs 28,062 Total interest on loan: Rs 37,34,871 Total payment including principal amount and interest: Rs 67,34,871
SIP amount: 25% of EMI (Rs 7,015) Investment period: 20 years Estimated return: 12% per annum Value of SIP after 20 years: Rs 70,09,023 (Disclaimer: Investment in mutual funds is subject to market risks. Consult your advisor before investing)
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