I learned about how to make home loan interest free and its meaning from a bank official early this month. An interest-free home loan refers to a mortgage where the borrower is not charged any interest during the loan term and is required to pay only the principal amount borrowed. This method can save borrowers money, providing a cost-effective way to finance a home. There are many ways in which you can make your home loan interest free. So let me share the processes on how to make your home loan interest free here in brief.
How To Make Interest Free Home Loan?
The interest paid for a long time can really be high and seem to be a burden. So before availing of a loan, I wanted to know ways to make it interest-free and that is when the official suggested a few options. Here are they:
Recover the interest amount by investing smartly:You can start a SIP at just 20% of your home loan EMI amount in a mutual fund scheme. In such a case, you might be able to receive the entire interest amount or even more.
Extend your home loan tenure from 20 years to 30 years:You can always ask your lender to increase the tenure of your loan. For example, suppose you have taken Rs 50 lakh as a loan for 20 years at 8% interest. On extending it to 30 years, the monthly EMI will go to Rs 36,688 per month from Rs 41,822. You can then invest this saved amount, Rs 5,134, through a SIP mode into mutual funds, giving about 12% returns in a 20-year period.
So here are some ways in which you can make your home loan interest-free.
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How to Make Home Loan Interest Free?
Fahtima
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2023-12-01T08:59:18+00:00 2023-12-05T08:48:29+00:00Comment
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