SIP started with Home Loan Can Get Your Money Back

SIP benefits with Home Loan Can Get Your Money Back

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Systematic investment plan SIP benefits with Home Loan Can Get Your Money Back

Owning Property is everyone wish. So the very first thing comes in mind when buying  property is Home Loans to fulfill the need of money.

 Many of the Government Banks, Private Banks & Housing finance companies provides Home loans to such peoples after checking their eligibity & All of these lenders charges some interest rates varying from 8% to 9.50% (Floating Interest rates) on the Loan Amount.

If you also have a Dream for Own House & planning to take loan in future, This Smart Investment Idea is just for you

So Today I came up with the Smart Investment Idea for all those who have occurred Home loans or Planning to take Loans in Future.All you want is to read this full article & gain some basic  knowledge & interest. 

Here I m going to explain with an example how u could get all of your Loan Amount Payable  return to you with a long term investment.

All the Calculations are based from the Rates & Data Collected through various authorized channel & links are also shared with details.

Mr Bhuvan living in a city on a rented accommodation & now he has dream to purchase a Home for him which would cost him Rs 40 Lakhs & the very first step he had taken is by applying  for a same amount of loan with ABC Bank account

Let Say he gets a approval for loan amount of Rs 30,00,000 for a period of 20 years, See below how much money will he have to pay till the loan will get ends after 20 years completion :

20 years Home Loan Chart
Loan Repayment
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Loan EMI Calculator

Home Loan Chart for 20 Years
20 year Home loan chart

In this example you can see the total amount paid by Bhuvan is Rs 62,48,327 against loan amount of Rs 30,00,000 in the 20 years period with an interest rate of 8.5% ,

Now let say Bhuvan has started a Systematic Investment Plan SIP in mutual funds investment with a start of his loan period & should have increased loan repayment tenure from 20 years to 25 or 30 years & lowering his EMI value where he will use that difference amount in investing in SIP for same period for 25/ 30 years , what returns he will get after 25/30 years is shown in below cases:

First Case (Systematic investment plan SIP started with Home Loan Can Get Your Money Back) 

If Loan tenure increased from 20 to 25 years then shown below the total amount payable is Rs 72,47,043 with Monthly EMI of Rs 24156 

Home Loan 25 Years Chart
Home Loan Chart Of 25 Years

So the difference amount in the monthly EMI for 20 & 25 years = 26034 – 24156 = Rs 1878   so in  Same time if he would have purchased 2 SIP  of Rs 1000 each then see below the amount he will get from the SIP :

SIP Profit In 25 Years

SIP Wealth Gained Calculation Chart : SIP Growth Chart For 25 Years

 

 

 

 SIP Returns% Calculations are taken from the Ten All time Best Funds Value over a period of 10 years. U can Check the Same from this gven chart & link  Below :

Top 10 SIP Funds Value For 10 Years

More Details on Above Shown Funds can Check here 

SIP Calculator

for rate of return : https://bit.ly/2Xiu6UP

 

Now Discuss On Second Case (SIP started with Home Loan Can Get Your Money Back)

If Bhuvan increased Loan Tenure from 20 to 30 years then shown below the total amount payable is Rs 83,04,265 with Monthly Emi of Rs 23,067

Home Loan For 30 Years Chart
30 years Home Loan Chart
Home Loan EMI Calculation Chart For 30 Years

So the difference amount in the monthly EMI for 20 & 30 years : (26034-23067) = 2967   so in  Same time if he would have purchased 3 SIP  of Rs 1000 each then see below the Wealth he will get from the SIP  :

SIP Profit Chart in 30 Years

By Above Example in Second Case If Mr. Bhuvan repay his loan amount of Rs 30,00,000 in 30 years  with EMI of Rs24,680 and putting that same Rs3000 into SIP for 30 years he would get Maturity value from SIP is Rs 89,29,852 after 30 years & by the time his loan would have square off & he will have around 90 lakhs in hand + His Own House(Whose cost would also have been increased in 30 years from initial purchased rate of Rs40,00,000 & also it’s a win win situation for everyone.

Conclusion

So This is how advantages of SIP benefits with Home Loan Can Get Your Money Back.

This is clear example of power of compounding  when you start an sip plans with small amount.

Aside From this additional  Benefits from The Loan Amount he will get on which soon I will share my post , But briefing here are few :

1.  Tax Benefits on Home Loans for income tax

2. PMAY – Pradhan Mantri Awas Yojana 2020

These are the references made after calculations done by all the rates as on April 2020 by the details collected from official sites, please check with your bank once reevaluate

So Friends this is one of the best example describing benefits of SIP mutual funds to achieve financial goals.

SIP can be started with lump sum or any amount of money from rs 500 or start investing with a fixed amount.

You can anytime rupee cost averaging as per timing the market.

Please comment below & let me know if you have any question or require additional information or further clarification regarding this.

Share with your Friends & Family or anyone who has taken a Loan or Planning to take in Future. This will surely help them to create wealth at the same time clearing  Loan repayment debts.

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