Home loan is a loan that dominates a person for many years as a burden. Through home loan, you buy property for yourself, but pay for it with a huge interest. The longer the loan tenure, the higher the interest. In such a situation, if you calculate, sometimes the property costs you twice the price or even more.
Best SIP 2024: But if you do not have a lump sum amount to buy a house, then loan is also an option. In such a situation, instead of regretting, it is better to somehow compensate for the amount spent in repaying the home loan. One way for this is SIP. If you want, you can recover the entire price of the home loan through SIP. Understand what you have to do.
How much interest do you pay on a home loan?
Suppose you have taken a loan of 30 lakhs from SBI Bank for 25 years. The interest rate of home loan in SBI is 9.55%. In such a situation, according to the SBI home loan calculator, you will have to return 78,94,574 to the bank in 25 years. If you take a loan for 20 years, then you will have to return 67,34,871 rupees and if you take a loan for 15 years, then you will have to return 56,55,117 rupees at the rate of 9.55%. Due to the longer tenure, the EMI becomes smaller, but you have to return a higher amount in return for the loan.
This is how you can recover your home loan
If you want to recover your home loan, you can do it through mutual fund SIP. For this, as soon as the home loan EMI starts, you should start a monthly SIP for the same tenure.
Start SIP with 20-25% of your EMI amount
To recover the home loan amount including the principal amount and interest, you should start SIP with 20-25 percent of the EMI amount. By doing this, you will easily be able to make enough corpus by the end of the home loan to pay the bank.
Understand how the amount will be recovered
Total home loan: Rs 30 lakh Tenure: 20 years Interest rate: 9.55 per cent 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
How much SIP should I invest?
SIP amount: 25% of EMI (Rs 7,015) Investment period: 20 years Estimated return: 12% p.a. Value of SIP after 20 years: Rs 70,09,023 (Disclaimer: Investments in mutual funds are subject to market risks. Consult your advisor before investing)
