Thepropertist Blog

a person is investing in a sip by saving money in a piggy bank

All you need to know about S.I.P for home loan repayment!

When your dream home is bought and you take a loan from banks or housing finance companies they generally charge a lot of interest. Customers pay the applicable EMIs for the loan they avail from the financial institution. 
Ever thought if there's a way to have interest less home loans?
Well, to your delight, now there is! The easiest and simplest way of investing in a home is through Systematic Investment Plan (S.I.Ps). 
 
Understanding S.I.P for property buying!
Systematic Investment Plan commonly known as S.I.P is a basic investment plan. In a S.I.P an investor has to deposit a small sum every month or every quarter and it is noticed that anything followed systematically can be beneficial in the long run, be it a regular check-up, life’s savings, as well as home loan repayment. S.I.P has rescued many home loan borrowers by helping them save on the interest slab. S.I.P is either amount based or quantity based.  If you choose a mutual fund scheme and invest in S.I.P, based on the plan that you have opted, the money is allocated in debt or equity. 
 
Home loan of Rs. 20 lakh @ 8.5% for 20 years
EMI = Rs 17356
Tenure = 20 years
Total payment = Rs 52,06,800
 
With S.I.P and Increased loan tenure
Home loan of Rs. 20 lakh @ 8.5% for 30 years
EMI = Rs 15378
Tenure = 30 years
Total Payment = Rs 55,36,080
 
Monthly S.I.P of differential EMI = Rs 1978
Rate of Returns = 15%
Period = 180 months
 
At the end of 16 years:
Corpus at the end of 16 years = Rs 15.79 lakh (15% returns from SIP)
Loan Balance after 16 years = Rs 15.07 lakh
Total home loan EMI payments at the end of 16 years = Rs 41,65,552
Total S.I.P instalments of Rs 1978 per month = Rs 3,79,776
 
Total Gross Payment EMI+SIP = Rs 45,45,328
 
Savings in 30 years (compared to 20 years) = Rs 9,90,752
 
 
Why S.I.P is better?
There are a number of reasons why it is better to invest in mutual funds via S.I.P, few of them are jotted down below:
 
1.) S.I.P gives you steady returns
 
2.) S.I.P generates long-term profits
 
3.) S.I.P helps save on high-interest rates
 
4.) S.I.P helps in creating wealth
 
5.) One can also avail tax benefits using S.I.P depending upon the mutual funds
 
Advantages of investment through S.I.P:
 

1.) S.I.P Is Pocket-Friendly:

There is no pressure that you need to invest a huge amount in S.I.P, one can even start S.I.P with a minimum of INR 500 monthly. As S.I.P allows you to invest in small portion also, it is considered as pocket-friendly.
 
2.) Collection For Down-Payment:
In S.I.P one can plan at least two years in advance, invest money in chunks and accumulate a good amount in 18-24 months. This money can be used to make the down-payment to purchase the property. S.I.P plays an effective and beneficial role for new as well as for existing home loan borrowers.
       
3.) S.I.Ps Enable Rupee-Cost Averaging:
When you invest regularly over a period irrespective of the market conditions, more units are bought when the market price of shares is low and lesser units are bought when the price is high it is called rupee-cost averaging. The stock markets in India are unpredictable, hence it is difficult to understand what is the best time to invest and what is not.
 
4.) Best For Financial Goal Planning:
Every person has a set of certain aims which they need to accomplish it could be purchasing a property, to give the best education to their children or collecting funds for marriage. All these aims/goals need a huge amount of investment which can be achieved easily with the help of S.I.P.
 
5.) Power of compounding:
The most well-suited way to grow your wealth is to invest regularly and start your investment as soon as possible. Under this plan, one’s money is compounded that means it gives you more return at the end. With the advantage of the power of compounding one can create wealth in long-term and can stay invested in the plan for a longer tenure. For example, a Z person’s 90% net worth came after he turned 50 years; that is the power of compounding, which means longer the term, higher the returns! When you invest in mutual funds through S.I.P's you gradually create an asset for yourself that will help you achieve your financial goals in life with the help of the power of compounding.
 
Systematic Investment Plan (S.I.P) provides you with a disciplined approach to investment and that too at a very nominal amount to start with. All you need to do is quantify the amount for whatever you are planning to buy, based on which you can plan your S.I.P amount.
Before investing, always use a stable S.I.P calculator to understand the rate of return on your investment. S.I.P calculator is a useful tool for you to decide the amount you should invest in the mutual funds, also this tool quickly calculate the returns for you.
 
Found this post useful? Spread by emailing it to a friend, or sharing it on Twitter or Facebook.
Also, you can look out for properties to invest right now!
 
 
 

Comments

  1. Your products to sell on running will make full use of well written articles. All of these people won't have a write down. Normally you will earn more as you have experience and apply safety measure know. http://audiompeg.tw/__media__/js/netsoltrademark.php?d=918kiss.bid%2Fgames%2Frollex-11

  2. Whoa! This blog looks exactly like my old one! It's on a totally different subject but it has pretty much the same page layout and design. Outstanding choice of colors! It’s perfect time to make some plans for the future and it is time to be happy. I have read this post and if I could I want to suggest you some interesting things or suggestions. Perhaps you can write next articles referring to this article. I wish to read even more things about it! I’ll right away clutch your rss as I can not to find your email subscription link or newsletter service. Do you’ve any? Please allow me know so that I may just subscribe. Thanks. http://foxnews.net

  3. As a result of their effort, Positive View's events have received coverage from many global television networks and possess also been streamed for online viewing. These guides let you practice when you are ready and still have the time to do so. You need a special connector typically called a Fire wire or sometimes known just as one IEEE 1394 high band connector.

  4. As a result of their effort, Positive View's events have received coverage from the 3 major global television networks and have recently been streamed for online viewing. You don't have to spend money on the most important or heaviest tripod for private use. Painting is surely an authentic gift for the long life and utility.

  5. Thanks for sharing your thoughts about home loan vs sip calculator. Regards

  6. It's very effortless to find out any matter on net as compared to textbooks, as I found this post at this web site.

  7. I every time spent my half an hour to read this website's posts daily along with a mug of coffee.

  8. I got what you mean, appreciate it for posting. Woh I am pleased to find this website through google.

  9. Ahaa, its pleasant conversation aboujt this article here at this blog, I have read all that, so now me also commenting at this place.

  10. I carry on listening to the news bulletin lecture about getting free online grant applications so I have been looking around for the finest site to get one. Could you tell me please, where could i acquire some?

  11. Nice post. I used too be checking constantly this weblog and I am inspired! Very helpful info specifically the ultimate section : ) I care for such info a lot. I used to be looking for this certain information for a long time. Thank yyou and good luck.

  12. My brother recommended ? m?ght like th?s web site. He used to be totally right. Thi? post actually m?de my ?ay. You can not imagine simply how much tim? I had spent for this info! Thank ??u!

  13. Usually I don't read article on blogs, however I would like to say that this write-up very forced me to check out and do it! Your writing style has been surprised me. Thank you, quite great article. http://cado789.com

  14. May I simply say what a relief to find someone that actually understands what they are talking about over the internet. You actually know how to bring a problem to light and make it important. More and more people need to look at this and understand this side of your story. It's surprising you're not more popular since you certainly possess the gift. http://kaniv.info/redirect/?url=http://www.mbet88vn.com

  15. In this particular signature, however post a website link to individual personal website. Remember though, way too link directories are not created comparable. Kim opted with Associated Content in March of 2007. http://knot-hedz.com/__media__/js/netsoltrademark.php?d=jom.fun

  16. I am glad to be one of many visitants on this great internet site (:, appreciate it for posting.

  17. Free PC alternatives to Recycle and Phatmatik Pro:Loopdrive3 VSTABS. Warrior bands moved south and east towards rich pickings of the peoples whom they had traded with. The plastic's name can often be abbreviated to CR-39, standing for Columbia Resin, which is not even half the load of glass, which supplanted quartz within the early twentieth century.

  18. There should be best put on ear plugs or different ear care. Try to buy in bulk for discounts and one-time shipping premiums. And surely when can, these people not stop jumping and playing around it!

  19. Thanks for helping out, great info.

  20. Sweet blog! I found it while browsing on Yahoo News. Do you have any tips on how to get listed in Yahoo News? I've been trying for a while but I never seem to get there! Appreciate it

  21. Article Directory Marketing is another way to get top spot in pr. They basically lodge complaints through the advertisers for going contrary to the quality guidelines and other rules.

  22. Hmm is anyone else having problems with the pictures on this blog loading? I'm trying to find out if its a problem on my end or if it's the blog. Any feed-back would be greatly appreciated.

  23. ?hat's up, this weekend is nic in favor ?f me, ?ecause this point in time i am reading this enormous informative ?iece of wwriting here aat my residence. http://shengrongdq.com/divius3oa5/post-ways-custommade-tshirts-25832.html

  24. The great thing about this DVD is that you may perform dance exercises anytime, without a partner. There they were, anticipating their forthcoming experience and joyously reliving the past one -- Peter, Susan, Edmund, and Lucy, inside the guises of actors William Moseley (now a dashing 20-year-old), Anna Popplewell (a newly minted Oxford freshman), Skandar Keynes (with vocal octaves greater at 15), and Georgie Henley (approaching teenhood, a fantastic six inches taller than we last saw her). The Open Video Project: This is site using a huge assortment of digital video for sharing.

  25. The very first thing to remember is in order to at all of the variables lousy . " to focus on just an individual. Social networking sites took the internet by storm over recent years years. http://918.credit/downloads/78-download-918kiss-for-android-and-iphones

  26. Somebody essentially lend a hand to make severely articles I'd state. That is the very first time I frequented your web page and up to now? I surprised with the research you made to create this particular publish extraordinary. Excellent job!

Leave a Reply

Your email address will not be published. Required fields are marked *


Recent Blogs View All


Projects you may be interested in

Shapoorji Pallonji Vicinia

Shapoorji Pallonji Vicinia

Chandivali-Powai, Central Mumbai Suburbs

Contact Us

Use the form below to contact us!

Share Property

Property Valuation Form