How You Can Get Home Loan At An Effective 0% Interest Rate in India From Any Bank

Owning home is desire of everybody as this is basic need of any human in the world ! We work hard and manage to have down payment required for the home and rely on the lender to provide home loan at an affordable rate. If I say you can get a Home Loan at an effective 0% interest would you believe ?

Managing a personal finance is always a great skill one should adopt. This is what I learned from book “Rich Dad Poor Dad” by Robert Kiosaki. We'll see some theory with some realistic calculation which will make you believe that you can too afford home at effective 0% interest rate and can own your own house in coming days.

Get Home Loan At Effectively 0% Interest Rate from Any Bank

Well while reading you might have a thought that which bank gives such low cost home loan ? will I be eligible ? where to approach for such low cost home loan ? So I would say that with this trick you can get interest waiver for any bank let it be from private banks such as HDFC,ICICI, AXIS or some of the state owned banks like SBI, PNB.

Lets see trick to manage your Home Loan

Say you have availed a Home loan of 10 lacs for 15 years with an interest rate 9.8% in 1999 and paid the installments till end of 2013. 

Loan AmountINR 10,00,000
Interest (p.a.)9.80%
Tenure of Loan (in years)15
EMIINR 10,831.37
Total Interest Paid949645.56

Get your Home Loan Interest Back

You have to keep aside only 0.10% of your home loan amount, here 0.10% of 10,00,000/- is 1,000/- per month till the tenure of your home loan and start investing those money in best performing mutual fund SIP till tenure of your home loan with the amount you are keeping aside. (i.e. Rs. 1,000/-)

Smart Investment in Mutual Fund 

  • If I would have invested into HDFC Top 200 MF with SIP of 1000 Rs following are the returns summary.
  • The fund has performed well and given more than 20% returns to its investors; this has minimized the total interest paid only to few thousands instead of huge 10 Lacs amount

Home Loan Interest Paid949,645.56
SIP Amount Paid180,000.00
Total Amount Invested1,129,645.56
Returns from Mutual Fund SIP1,109,239.00
Effective Interest Paid20,406.56

Hope you might have received the idea about how you can manage your personal finance for the Home Loan.

Do let me your thoughts in comments !



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