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SIP To Recover Home Loan: Buying your own home with the help of a home loan has become very easy these days, but the equated monthly installment (EMI) of the home loan involves paying heavy interest over a long period of time. The longer the tenure of the home loan, the higher the interest. So people pay more to buy a house and then the problem happens. But through Systematic Investment Plan (SIP) you can recover the entire cost of home loan. So know what needs to be done for this…
How much interest will have to be paid on home loan?
Took a loan of Rs 30 lakh from a bank for 25 years. The interest rate on home loan in this bank is 9.55 percent. According to the bank home loan calculator, the bank will have to repay Rs 78,94,574 in 25 years. If the loan is taken for 20 years, then Rs 67,34,871 will have to be paid and if the loan is taken for 15 years, then Rs 56,55,117 will have to be paid at the rate of 9.55 percent. The longer the tenure, the lower the EMI. But there will be more expenditure on loans.
In this way you can deposit home loan
To recover the home loan, you can do this through mutual fund SIP. For this, monthly SIP should be started for the tenure as soon as the home loan EMI starts. A SIP should be started with 20-25 per cent of the EMI to recover the home loan amount including principal and interest. With this, you can easily deposit the amount to be paid to the bank till the completion of the home loan.
How will the amount be recovered?
Total home loan: Rs 30 lakh
Tenure: 20 years
Interest rate: 9.55 percent per annum
EMI: Rs 28,062
Total interest on loan: Rs 37,34,871
Total repayment including principal and interest: Rs 67,34,871
Understand SIP Formula
SIP amount: 25 percent of EMI (Rs 7,015)
Investment period: 20 years
Estimated Returns: 12 percent per annum
SIP value after 20 years: Rs 70,09,023