How to recover interest of loans ?

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                                 Most of the common people in the economy has at least one loan in their life. The number of loans are depending upon their ancestral property, financial stability, income range etc. There are so many loans like Home loan, Car loan, Mortgage loan, Business loan, House maintenance loan etc.. Everyone who repaying the loan emi are blaming the interest on these loans. Those who calculate the interest amount they repaid to bank or any financial institutions understand that they lose a huge amount of money they made in their life to free from the debt.

At that time, we worry about the decision of the loan and blame the interest charged by the banks. It is not a fraud on interest by the banks, if we study about the loan and the emi we get a clear picture on that and can reduce the interest that we paying and can close the loan early Here i give you the method to make the loan interest free-loan without interest. 

Mutual fund

Mutual fund is the magic tool that i gave you to recover the loan interest that you are paying during the duration of loan. While studying the mutual funds, you can understand that the average return of the mutual funds are about 16% . We can select the mutual fund as a better investment method because

• Better return than the inflation
• Anybody can invest
• Low risk
• Monthly investment method

The AMC- Asset Management Company collects funds from various investors like us and pool it and invest it in the various shares in different sectors. The fund manager is the one who maintain this investment and make return from this. Each mutual fund have specific plan and work according to it. They will invest on behalf of me into the shares and made return using their skill and knowledge. Now let's have a look on the calculation on how the mutual fund investment make the loan interest free.

Alfred, a common man took 25 lakh loan from the bank and the interest rate is 9 % with a duration of 20 years. He have to pay an emi of Rs. 22500/- and if Alfred pay the emi correctly, he have to pay 54 lakh in total to close the loan. In this 54 lakh, interest paid by him is 29 lakh which is more than the loan amount itself. It gave a shocking pressure to him and he research the various investments and decided to invest in the mutual fund.

Alfred started invest in the mutual monthly (SIP - Systematic Investment plan) with an amount of Rs. 2250/- which is the 10% of the emi amount. After the loan period which is 20 years the invested amount will be 5.4 lakh and if the mutual fund gives you 

12% return, he  get 21 lakh

15% return, he get 30 lakh

He get the interest paid to the bank through this way, that means his loan becomes interest free 100%. If he gets more return, then it is his profit and he can also make profit from loan.

I hope everyone understood the method that i shared. You can refer this method to your friends who have loan through the sharing methods shown below. Make your loan interest free.

Bonus article: Moratorium