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How To Make Your Home Loan Interest-Free?

Paying interest on home loan for 20 years or so can be a burden-some. What if you are given an advice which can help you save your interest, or in other words, recover your interest by the end of tenure?

How to Get Home Loan at 0% Interest Rate in India?
Well, if you plan intelligently then for sure you can get back all your Home loan interest you pay through EMIs.

Here is how you can get back your home loan interest:-
Say, you have availed a Home loan of 10 lacs for 20 years with an interest rate of 9.5% per annum.

Calculations:
For a Home loan of 10 lacs for 20 years with an interest rate 9.5%:-
Monthly EMI = Rs. 9,321/-
Principal Amount = Rs. 10,00,000/-
Interest Payable = Rs. 12,37,144/-
Total Amt Payable = Rs. 22,37,115/-

Trick to get your Home Loan Interest Back

•    Keep aside 0.10% of your home loan amount every month.
(0.10% of 10,00,000/ = Rs. 1,000/- per month, till the tenure of your home loan)
•    Invest the same Rs. 1000/- in SIP (Systematic Investment Plan) till the tenure of your home loan.

Investment Result:
Invested Amount = Rs. 1000/-
Returns Expected (%) = 15
Tenure (Months) = 240

After 20 years, which is your Home Loan tenure:-
Invested Amount = Rs. 2,40,000/-
Maturity Amount = Rs. 15,15,955/-
Returns Accrued = Rs. 12,75,955/-

End Result of the planning:-
Home Loan Interest Paid Over 20 Years = Rs. 12,37,144/-
Returns on Mutual fund SIP = Rs. 12,75,955/-

SIP Amount Paid over 20 Years:-
Rs. 1,000 x 12 x 20 = 2,40,000 /-

Hence, Savings Over 20 Years = Rs. 38,811/-

Disclaimer
This is one of the ways we suggest you to enjoy interest-free home loan.
However, we strictly suggest you to consult your financial advisor before implementing this plan. This is merely a trick to recover your interest by the end of the tenure. The planning mentioned above takes no responsibility if it does not work as its implementation is sole responsibility of the borrower. No bank or NBFCs offer such scheme and this is just a plan to save yourself some amount from the interest levied on home loan.

Ankur Maheshwari

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Ankur Maheshwari

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