# SIP Tips: SIP will compensate for your home loan, and the entire money including interest will be recovered..

A home loan is a loan that dominates a person for many years as a burden. Through a home loan, you buy property for yourself but pay for it with a huge interest. The longer the loan tenure, the higher the interest. In such a situation, if you calculate, sometimes the property costs you twice the price or even more. But if you do not have a lump sum amount to buy a house, then the loan is also an option. In such a situation, instead of regretting it, it is better to somehow compensate for the amount spent in repaying the home loan. One way to do this is SIP. If you want, you can recover the entire price of the home loan through SIP. Understand what you have to do.

How much interest do you pay for a home loan?
Suppose you have taken a loan of Rs 30 lakh from SBI Bank for 25 years. The interest rate of home loans in SBI is 9.55%. In such a situation, according to the SBI home loan calculator, 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 EMI becomes smaller due to the longer tenure, but you have to return a higher price in exchange for the loan.

This is how you can recover a home loan.
If you want to recover a home loan, you can do it through a mutual fund SIP. For this, as soon as the EMI of the home loan starts, you should start monthly SIP for the same tenure.

Start SIP with 20-25 percent of the EMI amount
To recover the home loan amount including the principal amount and interest, you should start SIP with 20-25 percent of the EMI amount. With this, you will easily make as much corpus by the end of the home loan as you will make the payment to the bank.

Understand how the amount will be recovered.
Total home loan: Rs 30 lakh Tenure: 20 years Interest rate: 9.55% per annum EMI: Rs 28,062 Total interest on loan: Rs 37,34,871 Total payment including principal amount and interest: Rs 67,34,871

How much SIP should I do?
SIP amount: 25% of EMI (Rs 7,015) Investment period: 20 years Estimated return: 12% per annum Value of SIP after 20 years: Rs 70,09,023 (Disclaimer: Investment in mutual funds is subject to market risks. Consult your advisor before investing)

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