Most of you are paying EMI’s for home loan,One biggest worry of home buyer is home loan interest which will definitely increase cost of buying home ,I am not telling you to stop paying interest to banks,There is no option every one has to pay interest to bank if they are taking home loan as per the agreement
Have you ever thought of a way to get all the principal and interest back when u finishes ur EMI….
Is it possible.Yes
Lets find out…
Invest 10% extra of your Home Loan’s EMI in mutual fund Equity SIP and all your home loan principal and interest will recovered with profit in 20 years.
Example: For Home Loan of 20 Lac for 20 Years with ROI 9.5%( assumed)
EMI will be Rs. 18863/- ( image attached below for ref)
In 20 Years one will pay total towards Home loan will be
Principal: 20,00,000=00 &
Total – 44,74,320=00
Saving of just 2200/- per month in addition to ur EMI for 20 Years with a return of 18% CAGR u will get. 51,55,672/-
( SIP in Diversified MF has given avg return 20% plus in Last 20 years from 1995 to 2015)
Sip of 2200*240= 5,28,000
Interest: 24,74,320=00 &
SIP amt: 05,28,000=00
Total – 50,02,320=00
Thus you get back all your principal and interest back…plus earn a cool profit too!!!
So start ur SIP now…
18% is the past return of most of the mutual funds , However some people will say its difficult to expect such returns in future, For them ,I calculated 12% rate of return considering future growth prospects of indian economy
So here goes…
If you avail Home loan of 10 lakhs for 20 years with an interest rate 9.5% your…..
Monthly EMI: Rs. 9,321.31/-
Principal Amt : Rs. 10,00,000/-
Interest Payable : Rs. 12,37,144/-
Total Amt Payable: Rs.22,37,115/-
Now to get back your interest you just have to keep aside 0.20% of your home loan amount. per month till the tenure of your home loan.
Start an SIP Till the tenure of your home loan with the amount you are keeping aside. (ie Rs. 2,000/-)
💢what will be value of Rs. 2,000 pm @12% if invested through SIP❔
After 20 years➡
Principal Amt: Rs. 4,80,000/-
Value@ 12%: Rs. 20,00,000/-
In Home Loan you pay an Interest + Principal of Rs. 22,37,144/- in 20 years.
While in Mutual fund SIP you generate a wealth of Rs. 20,00,000/- which is more than the Interest amount you are paying in next 20 years.
Now stop worrying about home loan interest, Enjoy the dream home by starting small amount of SIP