Interest Free Home Loan You can fulfill your dream of owning a house by taking a home loan but you have to pay a huge amount of interest on it. In such a situation, if you want to get back the money equal to the interest charged on the home loan, then you will have to do SIP along with the home loan. Read the full news…
Home Loan EMI: Home loan proves to be very helpful in realizing the dream of buying a house. But, on taking a home loan, a huge amount of interest has to be paid. In such a situation, we try to take a loan from that bank or financial institution where the minimum interest has to be paid.
If we tell you a way in which you can get back the money equal to the home loan interest, then you will not believe it. Whereas, it is true that you can easily get back the money equal to the interest through a method. Now which method should be adopted? The answer to this is Mutual Fund SIP (Systematic Investment Portfolio).
Do SIP in the right way
If you invest in the right way, then you are sure to get profit. To easily get back the money equal to the home loan interest, you have to do SIP in the right way.
In simple language, understand that if a person has taken a home loan of Rs 50 lakh for 20 years. On this home loan, interest has to be paid at the rate of 9 percent, then every month an EMI of about Rs 45,000 will have to be paid. Now by the end of the loan, you have paid interest of about Rs 58 lakh, that is, you have paid a total of Rs 1.08 crore including the principal amount and interest.
Now in such a situation, if you had also done SIP along with the home loan, then it would have covered your interest. Now if you had done SIP equal to 10 percent of the home loan interest, that is, you would have invested Rs 4,500 in SIP. Even if this SIP runs for 20 years and gets an average return of 14 to 15 percent annually,
then a fund of about Rs 65 lakh will be ready in 20 years. To create a fund of Rs 65 lakh, you would have invested about Rs 12 lakh in 20 years and the remaining Rs 53 lakh would have been your interest income.
By investing in this way, you would have got back an amount equal to the interest on your home loan, which would have benefited you more. By investing in this way, you can get more profit.
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