Interest Free Home Loan: The entire interest amount of the home loan will be refunded, just do SIP in the right way..

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 least interest has to be paid.

If we tell you a way in which you can get back the money equal to the interest of the home loan, 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 interest of the home loan, you have to do SIP in the right way.

Through SIP i.e. Systematic Investment Plan, you can reduce the interest on your home loan to a great extent. SIP is an investment plan in which you invest small amounts regularly. This method can give you good returns in the long term, which can prove to help reduce the interest burden of your home loan.

In simple language, 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 interest of the home loan, that is, you would have invested Rs 4,500 in SIP. If this SIP continues for 20 years and gives an average return of 14 to 15 percent per annum, then a fund of about 65 lakh rupees will be ready in 20 years. To create a fund of Rs 65 lakh, you would have invested about 12 lakh rupees in 20 years and the remaining 53 lakh rupees would be your interest income.

By investing in this way, you would get back the amount equal to the interest of your home loan, which would give you more benefits. By investing in this way, more profit can be gained.

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