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Home Loans

Normally people are taking loan for 20/25 yrs depending upon eligibility and availability but if somebody wants to take a loan for 10 yrs or 15 yrs then he/she should take a loan for 20/25 yrs and the difference between emi of 10 yrs and 15 yrs and 20 yrs should be invested in equity mf via systematic investment plan.

EX - If loan amount is 10 lakhs and rate of interst is 8.65% per annum then emi are as

Follows:

Details 25 YRS 20 YRS 15 YRS 10 YRS
EMI RS.8154/=PM RS.8773/=PM RS.9936 /=PM RS.12479/=PM

The Difference Between the EMI of 25 yrs and 10yrs = rs. 4325/=PM

The Difference Between the EMI of 25 yrs and 15yrs = rs. 1782/=PM

The Difference Between the EMI of 25 yrs and 20yrs = rs. 619/=PM


The calculation of difference invested in sip then what will be the figure after stipulated time period are as follows (we assume that person has taken the loan of 25 yrs)
Details 10 YRS 15 YRS 20 YRS
EMI 8154 8154 8154
SIP 4325 1782 619
Total Amount Payable 12479 9936 8773
Assume Maturity Value of SIP at 12% PA 1004867 899154 618473
Loan Outstanding 820653 653391 396022
After Certain Period but EMI of 25yrs
Final Cash Balance 184214 245763 222452

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