Home loan is a long term loan. In such a situation, when you take a loan, you pay its EMI for 15, 20, 25 or 30 years. In such a situation, the amount they take from the bank as a home loan, they pay back much more by paying interest. The higher the loan tenure, the higher the interest. But do you know that there is a smart way, by which you can very easily collect the amount you have paid to repay the home loan. In simple words, you can recover your home loan including interest. Let us tell you what to do?

Suppose you have taken a loan of 30 lakhs from SBI Bank for 25 years. You have got a home loan from SBI at an interest rate of 8.75%. In such a situation, according to SBI home loan calculator, you will have to return Rs 73,99,293 instead of Rs 30 lakh to the bank in 25 years. If you take a loan for 20 years, you will have to return Rs 63,62,717 and if you take a loan for 15 years, you will have to return Rs 53,97,023 at the rate of 8.75%. The longer the tenure, the smaller the EMI, but you have to return a higher price in return for the loan.

If you take a loan of Rs 30 lakh at an interest rate of 8.75% for 25 years, the EMI will be Rs 24,664 per month. If you take a loan for 20 years, the EMI will be Rs 26,511 and if you take a loan for 15 years, the EMI will be Rs 29,983. The longer the tenure, the smaller the EMI but the higher the interest you will have to pay. The shorter the tenure, the bigger the EMI, but the interest you will have to pay is less.

If you want to recover your home loan, you will have to start a SIP. For this, as soon as the home loan EMI starts, you should start a monthly SIP for the same tenure. That is, if the loan is for 15 years, then start a SIP for 15 years and if the loan is for 20 years, then start a SIP for 20 years. This SIP should be at least 25% of your loan EMI. Also, you will have to start this SIP as soon as the home loan starts.

Suppose you took a loan of Rs 30 lakh for 20 years at an interest rate of 8.75%. The EMI is Rs 26,511. On this loan, you will have to pay a total of Rs 63,62,717 including the principal amount and interest, out of which Rs 33,62,717 will be only for interest. Now you have to start a SIP of 25% of the EMI amount, which will be Rs 6,628. You will have to run the SIP of this amount for 20 years.

If you run Rs 6,628 for 20 years, then if you get a return of 12% on this SIP, then in 20 years you will get Rs 60,96,815 from SIP, which will be around the total amount of your loan. If you get a return of 13%, then you will get Rs 68,83,080, which will be more than your loan and interest. If you get a return of 15 percent, then you will earn Rs 87,95,843 from SIP in 20 years, which will be much more than your loan and interest.

Before investing in mutual funds, you should understand that this scheme is subject to market risks. It does not give a fixed return. The return is also given according to the market. Experts believe that its average return in the long term is 12%. Sometimes it can be more or less than this.