It is everyone’s dream to buy your house. But it is very difficult to realize this dream because property prices are increasing day by day such as viral video of Vasuli Bhai (Pal Dam is growing). Most people take home loans from the bank to buy their home. Which takes many years to be paid. However, by investing in SIP, you can get relief from the burden of your debt to a great extent. Do you know how it is possible?
Systematic investment scheme
Systematic investment plans are introduced by SIP mutual funds. This is a type of investment plan. In this, instead of investing outright, you can invest in a certain amount of mutual fund scheme once every month. Which can make the dream of buying your house easier. Let us tell you…
Understand complete calculations
Let us explain to you through an example, if you have taken a home loan of Rs 40 lakh at an annual interest rate of 8.5 per cent for 20 years, then you will have to pay an EMI of Rs 34,713 every month for 20 consecutive years. That is, on a loan of Rs 40 lakh, you will have to pay an interest of Rs 43,31,103 in 20 consecutive years. After 20 years, you will have a total loan remaining Rs 1000 including the original amount and interest amount. 83,31,103 will have been paid. Suppose you invest 25 to 30 percent of your EMI in SIP, then in 20 years you can reduce the impact of loan on your finance to a great extent. 25 to 30 percent of EMI of Rs 34,713 is Rs 8,678.
How will the loan be recovered?
If you calculate interest at the rate of 12 percent on it, then your total investment in 20 years will be Rs 20,82,480. You can get an interest of about 65,87,126 rupees on this. This means that after 20 years you will have an amount of Rs 86,69,606 and the total cost (interest and original amount) of your loan will be Rs 83,31,103. Now during the same period you can invest 1000 rupees through SIP. By investing Rs 20,82,480. You can make a fund of Rs 86,69,606. Through this calculation, the entire home loan amount can be recovered.
