How to make home loan interest free?
Looking at today’s era of inflation, the same thing comes to everyone’s mind: how long will they live in a rented house, but we middle class people cannot fulfill this desire with the money of our employment. Can, because today the cost of a common house is 20 lakhs. And such a huge capital cannot be together. For whom home loan would be a right option, home loan is such a facility, through which a middle class family can easily fulfill their dream of buying a house. At present, due to uncontrollable inflation, the interest rates of loans are increasing continuously, recently (08 December 2022) the Reserve Bank has increased the repo rate by 0.35 percent, the presentIn the financial year (2022-2023) The Reserve Bank has increased the rates of repo rate by about 2 percent from 4.40 percent to 6.25 percent. Due to which the loan interest rates are continuously increasing the cost of debt, A side effect is that your monthly installment (EMI) becomes higher or your repayment tenure increases. Currently, the initial home loan interest rates of different banks (HDFC Bank, SBI Bank, IDFC Bank) are around 8.50 per cent on an average.
Let us now explain with an example, at this rate of interest, if you take a home loan of Rs 10 lakh for the next 10 years, you will have to pay almost the same amount of interest on the principal amount. That is, the value of the house taken through a home loan becomes almost 1.5 times. Have you thought about how to compensate for this? That is, how can we get back the interest that we pay for the next 10 years, so that the cost of the house is recovered. An easy way to do this is through SIP mutual fund strategy. by which we can now buy off the home loan interest.
What to do before taking a home loan
Before taking a home loan, you have to calculate it———–
Consider it in such a way that instead of a loan of 10 lakhs, you will pay only interest of more than 10 lakhs to the bank in the next 10 years. If the total repair amount is seen, then it will be around 12-13 lakhs. That too when the interest rates remain at 8.5% throughout the repayment tenure, they can also change if the interest rates are higher or lower. After this calculation, now we have to make such a strategy by which we can make our loan debt free and done.
After taking home loan strategy
In today’s time, if we look at the average price of a 1BHK house in cities, it is around Rs 20-30 lakhs. If you take an 80% loan for a house worth Rs 25 lakh or a loan of Rs 20 lakh, you will still have to pay a hefty interest on this amount.
Now in such a situation, we should make a plan to recover it. For this, mutual fund SIP is a better option in today’s time. In this, our strategy should be to start a monthly SIP for the same tenure as soon as the EMI of the home loan starts. Now it comes to mind that how much amount has to be put in SIP every month, then it should be decided on the basis of EMI. Estimated, if you do SIP of 20-25% of your EMI, till the end of the home loan, you will earn returns from SIP around the total payment you will make to the bank.
Let’s understand its calculation: –
1st calculation
|
home loan amount |
tenure years |
Rate of interest |
|
10,00000 |
10 years |
8.50 percent |
|
I |
12,400 |
|
|
total interest on loan |
4,87,829 |
|
|
total amount against loan |
14,87,829 |
|
As mentioned in the above calculation, if we take a home loan of 1000000 at 8.5% for 10 years, then our monthly EMI will be ₹ 12400 in which in 10 years we will get a deposit of around 15 lakhs including principal and interest. Have to do
Let us now calculate it in another way in which the EMI of the month will have to be paid less.
2nd calculation
|
home loan amount |
tenure years |
Rate of interest |
|
10,00000 |
15 years |
8.50 percent |
|
I |
9,847 |
|
|
total interest on loan |
7,72,531 |
|
|
total amount against loan |
17,72,531 |
|
Here in the second calculation, we have taken a loan of 1000000 at 8:50% interest rate for 15 years, whereas we have taken more for 5 years, in which our principal and interest will have to be paid 1800000 rupees. But here our EMI of the month will be less than before.
In which only ₹ 9847 has to be given, that means we are saving Rs 2600 every month from the first calculation to the second calculation.
A Mutual Fund plan
to save here is the best and highest return saving plan. In which we will add ₹ 400 more to the remaining ₹ 2600 every month, because our EMI every month will be almost equal to 1, but every year our salary will increase slightly, out of which we will be able to do a mutual fund of ₹ 3000 every month. The ones are Where 1000-1000-1000 will invest in three different mutual funds, where our return will be 12% investment for 15 years. Because our loan is for 15 years, so if I do the calculation here, there will be a savings of 1500000 including principal and interest. So in this way we have saved 1500000 from the same home loan money by taking ₹1000000 home loan, in which our total principal and interest is 1800000, in which after 15 years we have deposited only ₹300000 in banks.
The screenshot of mutual fund calculation is given below, you must also do the analysis yourself once because (SHARE MARKET SUBJECT TO RISK)
|
Estimated return |
|
12 percent |
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