Zero-Interest Home Loan Planner
Calculate the SIP amount needed to offset your home loan interest and make your loan effectively interest-free
Important Disclaimer
This tool is for educational and estimation purposes only. Actual results may vary. Please consult a certified financial planner before making financial decisions.
- • Standard amortized loan with fixed EMIs and reducing balance method
- • Monthly EMI payments at the end of each month
- • No prepayments, foreclosures, or part-payments considered
- • Fixed interest rate for entire tenure
- • Monthly SIP contributions at the beginning of each month
- • Monthly compounding frequency as per mutual fund practices
- • Constant rate of return - actual returns are market-dependent
- • No exit loads, taxes, or charges considered
Zero-Interest Home Loan Strategy works by investing in SIPs parallel to your EMI payments. Since SIP returns (typically 12%) are higher than loan interest rates (typically 9%), your SIP corpus can offset the total interest paid over the loan tenure.
How it works: While you pay EMIs to the bank, you simultaneously invest a calculated amount in SIPs. At the end of your loan tenure, your SIP maturity amount should equal or exceed the total interest you paid on the loan.
Key Benefits: This strategy helps you build wealth while paying off debt, effectively making your home loan "interest-free" from a net worth perspective. It's a smart way to leverage the power of compounding while fulfilling your home ownership dreams.