Mutual Funds SIP: Solution for an interest-free loan

The Solution — Recover the interest amount you will pay by investing in mutual funds By starting a SIP of 0.16% of your home loan amount in an equity mutual scheme, you can recover the interest amount.


Home loan amount of ₹ 40 lakhs | Interest 9% | EMI ₹ 35,989

Tenure of 20 years |You end up paying ₹ 86.37 lakhs | Interest Paid ₹46.37 lakhs

Solution Steps:

Monthly SIP of ₹ 6400 (0.16% of the loan amount), 12% average annual return. You gain ₹ 63.31 lakhs in 20 years. Invested amount ₹15.36 lakhs, Profit ₹47.95 lakhs in your hands, which is more than enough to cover the interest you will pay.



Sangram Chavan

Entrepreneur and Tech Geek love to contribute to cause and faith in Karma