home loan repay or sip investment

Last post 06-13-2011 12:48 AM by datamax.systems@gmail.com. 2 replies.
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  • 06-09-2011 1:10 PM

    home loan repay or sip investment

    i hv taken a home loan of 20L with 8.75% for 15 years...8 months back...now interest rate has been increased to 10.75 and the tenure to 21 years.where as my EMI is @20K....

    Now i have Rs.20000 in spares ..what should i do..options are

        20L 15 yrs  19989.00                
                total earning    
    total amt                 after 20 yrs
    payable interest tenure-m closure in   sip amt tenure 10% 12%     plus / minus
                           
    As  it is ( no prepymt) 4937000.00 29.37 248.00 20.6 yrs   20000.00 20.00 15300000.00 2.00cr 20000000.00   15063000.00
          2 cr   1.5cr
    20000 pm prepaymnt 2899000.00 8.99 81.00 6.80 yrs   20000.00 13.00 6411000.00 75.18 7518000.00   4619000.00
          75.18lacs   46.19 lacs
    15000 pm prepaymnt 3070000.00 10.70 95.00 8.00 yrs   5000.00 20.00 3828000.00 50.00 9833000.00   6763000.00
        15000.00 12.00 4181000.00 48.33 98.33lacs   67.6 lacs
    10000 pm prepaymnt 3258000.00 12.58 114.00 9.50 yrs   10000.00 20.00 7656000.00 99.91 12314000.00   9056000.00
        10000.00 10.00 2065000.00 23.23 1.23cr   37.11 lacs
    5000 pm prepaymnt 3693000.00 16.93 151.00 12.6 yrs   15000.00 20.00 11485000.00 1.50cr 18200000.00   14507000.00
        20000.00 8.00 2947000.00 32.30 1.82cr   1.45 lacs

    little confused which one to choose as the commitment is for 20 looong years

    • Post Points: 20
  • 06-10-2011 2:02 AM In reply to

    Re: home loan repay or sip investment

     Hello,good to hear that you have made an attempt to analyse which is the best option. Lets see which is the best option 

         Suppose you consider a prepayment Rs.20000 your loan will be closed in 6.8 years which means that you will have 40000 amount to invest in sip.So if you invest 40000 P.M in SIP for remaining period then the amount you can accumulate by the end of the 20 years is 1,30,70410 at an CAGR of 10% P.A

     Prepayment of 15000 your loan will be your loan will be closed in 8 years which means for first 8 years you will invest only 5000 and remaning 12 years you can invest 40000 P.M in SIP then the amount you can accumulate by the end of the 20 Years is 11,788,420 at an CAGR of 10% P.A

    Prepayment of 10000 your loan will be closed in 9.5 Years which means for first 9.5 Years you can invest invest 10000 and for remaning period you can invest 40000 P.M in SIP then the amount you can accumulate by the end of the 20 Years is 1,0,74,7836 at a CAGR of 10% P.A

    Prepayment of 5000 your loan will be closed in 12.6 Years which means for first 12.6 Years you can invest 15000 and for remaning period you can invest 40000 P.M in SIP then the amount you can accumulate by the end of the 20 Years is 9,802,506 at a CAGR of 10% P.A  97,42,402 at a CAGR of 10% P.A

    Considering no prepayment the amount of corpus you can can accumulate by the end of 20 Years is by invest menting the spare amount of 20000 will be 15187376 at a CAGR of 10%

    If you are under the Fixed loan rate then it is better option to go with the no prepayment option, But, if you come under the floating rate then it always better to mix the options i.e prepayment of 10000 and 10000 in SIP would be better option because under a floating rate there is a possiblity of increase in the interest rate which might impact your loan payment considerably 

     With Regards!!!!

     

     

     

     

     

    • Post Points: 20
  • 06-13-2011 12:48 AM In reply to

    Re: home loan repay or sip investment

    thanx ...i have not calculated the the (saved)emi after completion of loan...thanx again.

    • Post Points: 5
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