Home Loan – To build or buy a house, one has to take loan from banks. Now the loan interest rates have become so high that till it is repaid you have to pay more interest than the principal amount… In such a situation, let us tell you that you must do this while taking a home loan. Due to which you will get the entire interest amount back.
Home Loan EMI: Generally everyone has to take loan from banks to build or buy a house. Now the loan interest rates have become so high that till it is repaid you have to pay more interest than the principal amount.
How wonderful it would be if such a solution comes up so that your home loan interest is also paid and you get the entire interest amount back by the time the loan is completed.
The tenure of a long home is quite long and that is why you have to pay more interest on it, but you can also use this long tenure to increase your capital, due to which the interest money will be returned.
Are you shocked? This may sound like a miracle to you, but there are some investment methods which can turn it into reality. In the time you pay your home loan EMI, an amount equal to your interest will be collected. For this you will not need to invest much. If you look at the formula, by investing only 20 percent of your EMI, you will be able to recover the entire interest amount till the loan is repaid. You just have to proceed through the Systematic Investment Plan (SIP) of the mutual fund.
20 percent SIP, 100 percent return –
Investment advisor Manoj Jain says that from the time you start paying home loan EMI, open a SIP as well. Keep its tenure the same as the duration of your home loan. Even if you keep 20 percent of your EMI as SIP amount, you will recover the entire amount given as interest. Let us understand this with a simple calculation.
How much interest paid on home-
If you have taken a home loan of Rs 30 lakh for 20 years at 9.25 percent interest. Currently the interest rates of all banks have increased. At this interest your EMI every month will be Rs 27,476. In the entire tenure of 20 years, you will pay a total of Rs 65,94,241 to the bank as loan. In this, the amount given as interest will be Rs 35,94,241. It would appear that you are paying more interest than your principal amount.
How much interest will you get from SIP-
Your EMI on home loan is Rs 27,476 and you will have to open a SIP of 20 percent of this amount i.e. Rs 5,495. You will get an average return of 12 percent on this. Your total investment amount till maturity will be Rs 13,18,800 while you will get back Rs 54,90,318. That means you will get a benefit of Rs 41,71,518 only in the form of interest. You must be clearly seeing that against the total interest of Rs 35,94,241 paid on home loan, SIP has returned you Rs 41,71,518. That means, even after paying interest, you will save Rs 5,77,277.
