Most of you dream of buying your own home. But if we consider the present situation, the prices of real estates are really high.
For this reason, it becomes difficult for you to fulfil your dream of owning your own house. Even if your monthly income increases,
the price of home also increases simultaneously, making the difference of the above two quite high. So, what is the next step you opt for?
Very obvious, you go opt for a home loan. With the help of home loan, your dream to buy your own house will be actualized. But at the cost of a burden of debt on your head.
Now take a moment and think. If you invest in a suitable mutual fund schemes via SIP, then your SIP will pay for the EMI of your home loan. This is not a joke, this is for real.
If you plan your finances with our Home Loan Registry, then your home loan will not be a liability for you. Our Home Loan Registry is a SIP based investment and expense
management tool which will guide you to repay your home loan interest with SIP.
Home Loan Registry is a SIP based expense management and investment tool to assist you to payoff your home loan interest with SIP investment in mutual funds.
When you take a home loan, you repay it through equated monthly installments poularly known as EMI. Alongwith the principal amount, you need to pay certain
interest rates up to the pre-specified loan tenure. But on the other hand, if you increase the repayment tenure, and invest in a suitable mutual fund schemes,
then your SIP can pay for your EMI. (where, SIP stands for Systematic Investment Plan)
Lets explain it clearly.
Take an example.
You want to buy a flat and took a home loan of Rs. 50Lacs at 10.5% interest rates from a banking institution. You chose the loan repayment tenure for 20 years.
So, you need to pay EMI of Rs. 49,919. Then you chose to extend the repayment tenure from 20 to 25 years. So, now you need to pay EMI of Rs. 47,209.
With the increase in the loan tenure, the EMI amount decreased to amount of Rs. 2710. Now, you decided to invest in a mutual fund with SIP of same amount of Rs. 2710.
20 years of home loan= EMI of Rs. 49,919
25 years of home loan= EMI+SIP (Rs. 47,209+ 2710= Rs. 49,919)
In the 1st case, you are only paying the EMI. But in the 2nd case, you are paying for the EMI and also doing a SIP simultaneouly, making the monthly cash outflow same as Case-1 (by increasing the loan tenure).
With 12-15% annual expected return from the SIP, you can easily pay off your outstanding home loan amount with your redeemed amount from the mutual fund before the home loan repayment tenure. As a result, you will pay less EMIs for Case-1 compared to Case-2.
Here are some of the drawbacks of EMI-
- EMI is a debt which is a financial liability on your part.
- The burden of EMI affects every financial decisions of your life. While going for any hefty expense, or switching your
job – all your financial decisions are dependent on your EMI payment. You need to keep in mind the EMI payment, than only you can think of
- When you take the loan and repay it through EMI, you end up paying more amount than the actual amount that you have
borrowed. The higher the repayment tenure, the higher will be the interest paid.
But in addition to home loan, if you invest in mutual fund through SIP, then the return that you will receive at the end will help you pay the home loan interest amount to acheive your dream of buying a house.
You can invest in SIP with a minimum of Rs. 500 which is a very little amount and is not a burden for you.
Here are some of the features of Home Loan Registry which will help you to buy your own home without the burden of debt.
With Home Loan Registry, investing in SIP offers you the flexibility of investment. You can choose the amount to
invest which can be a minimum of Rs. 500. Also, you have the flexibility to choose the frequency of investment as weekly, daily, quarterly or monthly.
With the help of SIP, the amount you would invest is auto-credited from your account and is transferred for SIP, as
per your request. In this way, you easily avoid the situation of delay in payment.
When you have decided to invest in SIP, just go for it. The market volatility doesnot affect your SIP investment.
So, your financial goal of buying a home donot get postponed.
Home Loan Registry SIP provides you the benefit of compounding which gives you higher return. With the facility of
compounding, when the amount of return gets re-invested, you earn interst on the interest earned. So, the amount of return increases which helps in achieving your goal.
With the facility of rupee-cost average, you get more NAV when the rate is low and vice-versa. It mitigates the risk of buying more when the prices
are high. SIP investment helps in maintaining the average investment cost at a lower level which in turn yields profit in the long-run.
In short, if you plan your finances with our Home Loan Registry, then you can easily fulfil your one of the biggest financial goal of buying your home.
From the above discussion, you can easily figure out as to why you should plan early to buy your dream home. Now, lets focus on how to plan and invest.
Dont worry. FreEMI is there to help you out. Our Home Loan Registry is a one of a kind automated platform which executes your cost of home and evaluates
a probable SIP which will give a handsome return against your invested money. Log in to FreEMI Registry and we will help you to plan your investment. Home
Loan Registry plan would help you buy your own house without any burden of debt.