Business News Desk – Home loan provides convenience, but in return you have to pay a lot of interest. The longer you take a home loan, the more interest you have to pay on it. Sometimes you pay so much interest which is double or triple your principal amount. In such a situation, how to compensate for this loss, have you ever thought about this? Here know the method by which you can recover your home loan along with the interest. Only very intelligent people adopt this method.
Understand how much interest you have to pay
Suppose you have taken a loan of 30 lakhs from SBI Bank for 25 years. You have got a home loan from SBI at an interest rate of 9.55%. In such a situation, according to the SBI home loan calculator, instead of 30 lakhs, 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 longer the period, the lower the EMI, but you will have to return more money in return for the loan.
This is how home loan recovery will happen
If you want to recover your home loan, you will have to start a SIP. For this, as soon as the home loan EMI starts, you should start a monthly SIP for the same period. If you start a SIP of 20-25% of your EMI amount as soon as the home loan starts, then you will recover the entire amount of the home loan including principal and interest. But the condition is that you have to start your SIP as soon as the home loan starts and continue it as long as the loan period is.
Understand the method of recovery with an example
You took a loan of Rs 30 lakh for 20 years at an interest rate of 9.55%. The EMI was Rs 28,062. On this loan, you will have to pay a total of Rs 67,34,871 including principal and interest, out of which Rs 37,34,871 will be only for interest. Now you will have to start a SIP of 25% of the EMI amount, which will be Rs 7,015. You will also run this SIP for 20 years. If you get a return of even 12% on this SIP, then in 20 years you will get Rs 70,09,023 from SIP, which will be more than the total amount of your loan. If you get even better returns than this, then you will withdraw more money from SIP.
Understand this well
However, before investing in a mutual fund, you should understand that this scheme is subject to market risks. It does not give any fixed return. The return is also according to the market. Experts consider its average return to be 12 percent in the long term. Sometimes it can be even more than this.
