Smart Way to Manage Home Loan: SIP Can Make Your Dream Home Affordable

SIP: Whenever we talk about buying our dream home, the first worry that comes to our mind is the home loan and the heavy EMI associated with it. Many times this dream gives us less happiness and more stress, because paying the loan for years and the interest on it shakes our financial condition.

Combination of SIP and home loan: A wise decision

Suppose you have taken a home loan of Rs 50 lakh, and in 20 year,s you have to pay around Rs 55 lakh only as interest. That means you will have to pay more than Rs 1 crore in total. Now think, if during this time you start investing a little every month through SIP, then the same money can come back to you as interest in the long run.

Make loans easier with smart planning

This strategy of SIP and home loan is especially beneficial for those who live on a stable income for a long time and want to increase savings gradually. If a SIP of ₹5000 is run for 10 years at a return of 12%, then a fund of about ₹14 lakh can be created. With this money, you can repay part of your home loan or meet future needs.

Disclaimer: This article is written for general information purposes only. The investment advice given in this is based on the personal opinion of the author. Contact your financial advisor before investing. Both risk and return are part of investing.

Also Read:

Turn ₹12,000 a Month into ₹2 Crore, The Magic of Long-Term SIP