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How to Calculate Home Loan EMI Vs SIP? Let’s understand how beneficial is this concept? and how does it actually works! For eg:- Your Loan Amount – 40,00,000 Loan Interest – 8% Loan Tenure – 25 Years  Your EMI would be near around – 30800 which you will be paying to the bank as interest. Your total interest amount for the tenure would be around – 92.6 Lakhs which you need to pay to the bank. Now we will check, how you can recover this amount with just a small amount of SIP. To recover 92 Lakhs in 25 years you need to start an SIP of .10% of your loan amount or 10% of your EMI. In this case you need to start an SIP of 4000 per month for the same loan tenure. If you start an SIP of 4000 every month for 25 years the resultant amount will be nearly around – 1.01 CR and hence you will be able to recover the interest amount. You can also use our calculator to know more details where you just have to enter your loan amount, loan tenure and loan interest. This is how the whole concept works and you can start your investment journey along side your loan. Now the question is where you could start an SIP ? what is the Fund? If you talk about the risk, then it will be moderate as the funds will be directly linked with stock markets. Why it will be linked to stock market is to generate better returns at a longer period of time with the help of compounding. To know more details about mutual fund, you can always contact us on +91-6351564754 and write to us on [email protected].