Buying a house is everyone’s dream, but the heavy interest of home loan many times leaves this dream incomplete. In such a situation, it is important to know how you can completely eliminate the interest of your home loan through a smart investment scheme. If you want to be interest free on home loans of 30 lakhs, a small SIP plan can be useful for you, which will bring back the money equal to you or even more.
About 7.50% annual interest rate is applied for taking a home loan of Rs 30 lakh from State Bank of India (SBI) for a period of 30 years. Accordingly, in 30 years, you will have to pay a total of Rs 75,51,517, of which ₹ 45,51,517 will go to the bank as only interest. However, if you start a SIP of Rs 1700 a month in a mutual fund in this 30 -year period, then your earnings will be amazing. After 30 years, you will have an amount of about ₹ 52,37,654, which will include an interest of ₹ 46,25,654 in addition to ₹ 6,12,000 you deposited.
This scheme is effective because the interest obtained from SIP offers the interest amount of your home loan. That is, the interest you want to pay on your home loan after 30 years will meet the SIP of mutual funds, and you will be free of interest. This financial strategy will not only cut your pockets, but you will earn more money than your investment in the long term.
It is worth noting that the size and duration of SIP should be equal to the home loan. Given the uncertainty of the market, patience and discipline are important when investing in this scheme. To take advantage of this, you have to invest in SIP regularly and complete the investment period according to the plan.
This is a smart and safe plan to stay interest free on home loans, which helps to turn the dream of buying a house into reality. According to the advice of financial advisors, by adopting such investment plans you can easily meet your financial goals. How to make interest free on Hom Loan: Complete interest of 30 lakh loan can be returned from SIP