Combination of EMI and SIP can save you lot of money
What if your Home loan tenure is reduced without increasing EMI, even if the interest rate remains the same? Sounds interesting? Read it. In year 2010, I bought the flat into the Ahmedabad for which I took the home loan of Rs 48 Lacs from one bank. At that time the interest rates were around 10.5%. So I decided to take the loan for the maximum tenure available, i.e. 20 years as I could afford the EMI of Rs. 47922/-. The bank RM came to my office for completing the paperwork. While filling the forms he asked me about the tenure which I would like to go for. I told him to go for maximum tenure i.e. 20 years. Bank’s RM told me, “Sir maximum limit is not 20 years it is 25 years”. According to my calculation I was ready for paying Rs 47992/, an EMI amount for 20 years of tenure considering 10.5% interest and Loan of Rs 48 Lacs. So if I chose to go for 25 year, EMI would be lesser. I tried to do the exact calculation and ended up with some unique Idea which I am sharing through this