Speed up your home loan by investing in SIPs..!?

Buying a house is the dream of many people. However, some people cannot afford to buy a house by paying the money in a single settlement. Due to this many people rely on home loans. However, after taking home loans, they find it difficult to pay the EMIs. If you want to get rid of home loan debt quickly then you need to pay a higher EMI amount. You can use SIP investment for that. In this post, we will see how you can pay off your home loan quickly through SIP investment. SIP for home Loan: To pay off a home loan through SIP, you need to invest in an Equity Systematic Investment Plan as soon as possible. How early should you start SIP investment? You can cover that amount with your EMIs.
How to repay a home loan through SIP?: Let's say you have applied for a home loan of Rs.50 lakhs. It requires continuous EMI payments of 20 years. 44,896 per month at an interest rate of 9%. That is, if you are starting a SIP investment, you can invest a fixed amount every month. If you are starting an SIP investment, you need to invest Rs.5,500 per month. We took the investment amount as a loan of Rs 50 lakhs. You can start SIP investment as per the loan you are looking for. 54,95,314 rupees can be earned within 20 years if you invest regularly at a 12 percent interest rate. The EMI amount remains the same for 20 years. But you can start a SIP investment with a small amount and increase it every year according to your income. If it increases, the amount will increase even more.
 
According to financial experts, you should invest in SIP mutual funds at least 5 years before applying for a home loan. Doing so will give you enough time to generate enough income. Secondly, monitor your financial position before using SIPs to cover home loan EMIs. Don't rely solely on SIPs for home loan EMIs. Ensure a steady source of income to cover EMIs and explore SIPs as an additional investment option. Calculate the required SIP amount to cover the home loan EMI.
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Sowmiya Sriram

07/10/2024 06:29 PM