Buy my new book 'MAKE EPIC MONEY' here: amzn.to/3HEShCR My Money Apps: bit.ly/3Zg56eR My bestselling books: ‘GET EPIC SHIT DONE’: ankurwarikoo.com/getepicshitdone ‘Do Epic Shit’: ankurwarikoo.com/doepicshit My gear for shooting this video: 🎥 Sony a7III camera: bit.ly/3M42wAV 🎬 Sony FE 24-70 f2.8 Lens: bit.ly/3KCCiF0 🎙 Shure SM7B Microphone: bit.ly/3O1NAVA 🔆 Fill Light 60W: bit.ly/37aJolP 💡 Key Light 150W: bit.ly/3O9nyjs 📽 Benro IT15 Tripod for Sony a7III camera: bit.ly/3O4PvJ1 Useful links: 20 books for your 20s: bit.ly/WarikooBooks 20 online courses for your 20s: bit.ly/WarikooOnlineCourses Gadgets that I use: bit.ly/WarikooGadgets The above links are on Amazon. If you buy any of these using the above links, I stand to make affiliate income from it. 100% of this income is contributed towards the education of kids who cannot afford it. In 2021 we contributed 38L and in 2022 we contributed 53L.
I remember I pre-closed my “first car” loan which I took from SBI. I prepaid by any amount (whatever was possible). I didn’t do any such calculations, my simple funda was: if I cannot grow my assets by 8.5%, I will not let my liability to grow in that same rate. 😊 Young professionals are lucky as they have these videos to understand finances.
When I need to refer any point from your video, I can just browse and in just a second I can get what I need, don't have to wait on an ad when I'm actually in a rush. At times when ads pop-up while browsing important financial stuff, it is so annoying. Thank you for not monetizing youtube. You are amazing.
The key takeaways are: a.) When "compounding" takes on with "compounding" it is only "break-even" that is left as a result. b.) The additional EMI or increased EMI amount that we pay to the bank in the initial months is "valuable" money vs. "invaluable" or "devalued" money that we keep paying till the term ends (due to inflation). So, it's a matter of choice what route you wish to go. If you think you could have invested that extra (valuable) money that you've saved (by not paying to the bank in the initail months) & could have earned more "compounded" profit out of it (compared to what you would have paid to the bank), then yeah that's your call. Otherwise, it is always a better idea to pay that money to the bank instead to close your loan early. Nevertheless, excellent content as always! Thanks for dedicating time to record this and share with the audience!
Can you also explain any preferred tactic on how to deal with Banks when the interest rates increase due to changes in repo rate. While I continue to add an additional monthly amount, my tenure keeps increasing increasing. My monthly EMI remains fixed.
@@anuragnigam Although, Im not very sure about it. This may vary bank to bank. But you can ask your bank to fix your interest rate by paying a fixed amount of money. Your interest then turns from floating to fixed. Additionally, the rates are expected to fall in the 3rd quarter this year, anyway. Due to various economic factors. No financial advice, though.
@@anuragnigamif your bank is private like indiabulls, shri ram finace plzz transfer that to any govt. bank . my father was also scammed by indiabulls bcoz they kept on incresing loan tenure every year.. but after transfering to pnb housing loan tenure is same from 2 years..
I got my home loan in 2010 for 20 years, I paid 1 lakh extra in second year i.e 2011 and 5 lakh in 8th year, I am left with only 6 emis now, My loan will be paid off until July, 2024. Paying it off 5.5 years earlier. This really works miracle. I regret why i did not made prepayment in second to seventh year. People reading this comment, do not do this mistake, please prepay every year...
The concept of 10% increase in EMI is a very smart option but we have to understand bank has made certain EMI beyond which you cant increase EMI. So please consider that in your calculation aheet
I wish I could know such things 5Y ago when I took car loan.. I was able to repay much of it early but at its last leg.. Past is past, I will use this knowledge for quick repayment of my home loan that I'll be starting soon. Thanks Warikoo ji.
Thanks a lot🙏 for the effective explation sirji, found it very simple to understand.... We got a clearity and confidence to repay our loans by saving our heard earned money and time . And the exel file was very much usefull... Thanks again
I am looking for this type of video. And I got what I wanted to see. Thank you Sir. It is really cleared all my doubts. Now I can go for what I want to do. ❤
U r the best sir…the way u speak…the way u explain …the way u show ur decency …each and everything is best about u…i wish i could have acquired only 1% of ur knowledge
Thank you, Ankur Sir for detailed video. Although, this is an incomplete video. There are 2 more scenarios that are in the reduced EMI Option. 1) Additional Reinvestment of the reduced EMI amount in the Loan Principal Amount 2) Investment of reduced EMI Amount in equity market (Stocks / MF) at ~12% return. Also, even if we ignore all of this the amount saved in EMI should also be added in the amount saved in addition to interest. I Agree that this might be less than the Reduce Term option but will provide better clarity to all your viewers. Let me know if I am missing any point in understanding this. Thanks.
I believe, Ankur was focusing more on the EMI reduction so in that point of view - this is a great video. Ultimately, maximum people who are paying EMIs - don't have additional money to invest so better to re-pay once they have some additional amount which saves lakhs of interest :-).
One of the most effective strategies for managing loan repayment is to prioritize prepayment when faced with surplus funds. The rationale behind this strategy is straightforward: if the return on investment (ROI) from alternate uses of the surplus funds is lower than the interest rate associated with the loan's EMIs, it is financially prudent to allocate those funds towards reducing the loan principal. Ex. Let say you have a loan at 8% Interest rate per annum. If you have ₹1,00,000 surplus fund, try to generate more than 8% (₹8,000) income per year from them. If you can't do so, always pre-pay your loan first!
Thank you sir... For explains this content in common and better way .... Now i am going to pay pre-payment for my loan.... It id really valuable information.....
Warikoo ji.. you explained it so nicely, that even a common man can understand and execute. thank you so much for all your help. This helped me plan my finance better. God bless you.. and lots of love.
My formula is to keep pre paying and reduce tenure(not EMI) until principal part becomes same as the interest part in EMI. So far i have saved 9 lakhs interest payment with 2.5l prepayment. Thanks to Warikoo in one of the previous videos, he shared one excel sheet to calcualte and decide whether to do lumpsum investment or to prepay loan
This prepayment is possible only on Home Loan in case of Car or Bike Loan there is a restriction of max 2 times prepayment plus there is a 3-5% interest too
Thank so much sir for providing the excel sheet it really helpful. I actually already made my own sheet but the pre-payment formula was not working properly and that is when landed on this video. I have been consuming your content on Insta regularly. Great work with all the content created by you
Sir i have lot respect for you because you are the only creater who actually sloves problem. My parents just planning to buy a house but as my parents are old and they don't know much about finance things so it always been a my responsibility to know which thing will work best for us through your video i gather really important information about finance and life I'm just 19 years old but because of you i understand one thing very early in life is if i wanna be someone who improve his life first i have to fix finance.( I don't know if you gonna read this but you mean a lot sir😊.)
Great video by the way. Best advise is don't buy a house on loan. Stay on rent, you'll save more than it is mentioned in this video. Better to spend on your lifestyle, health and personal growth. Reasons you should not buy a house: 1. There's no guarantee of life and nobody can predict if you'd be alive for next 25 years. 2. If you think you'll buy house for your future generation then first think that are you staying in the same house where your father and grandfather used to live. Your next generation will be capable to pay their own bills. 3. You can use the same money to invest somewhere so that you can have a secured retirement. 4. There are many more reason to not to buy a house. This is a big middle class trap. Many billionaires still live in a rented house. Nobody will tell you this hack.
billionaires live in rented house becz they loads of money, but not middle class. Owning a house for a middle class family means a lot; rather spending rents for 30 K you can just pay the same amount to own a house
It does not matter much.. I have played with these calculators multiple times over grow calculator.. Itni EMI bdhane ke liye paise hone b chaiye every month to pay the bank.. The strategy which I used is for first two years I did regressive pre payment but did not reduce tenure but reduced my EMI so that I can use my rest amount and reduce my emi monthly burden.. And after 2 years I did not reduce the emi but reduced tenure so that I pay less interest.. If you will try this on grow calculator then you will realize that no matter what you do total yearly interest varies by very small amount
Ankurji thank you for your simple way to explain intelligent and complex things especially about finance without losing focus and key things ....very grateful for your selfless service...😊
Buy my new book 'MAKE EPIC MONEY' here: amzn.to/3HEShCR
My Money Apps: bit.ly/3Zg56eR
My bestselling books:
‘GET EPIC SHIT DONE’: ankurwarikoo.com/getepicshitdone
‘Do Epic Shit’: ankurwarikoo.com/doepicshit
My gear for shooting this video:
🎥 Sony a7III camera: bit.ly/3M42wAV
🎬 Sony FE 24-70 f2.8 Lens: bit.ly/3KCCiF0
🎙 Shure SM7B Microphone: bit.ly/3O1NAVA
🔆 Fill Light 60W: bit.ly/37aJolP
💡 Key Light 150W: bit.ly/3O9nyjs
📽 Benro IT15 Tripod for Sony a7III camera: bit.ly/3O4PvJ1
Useful links:
20 books for your 20s: bit.ly/WarikooBooks
20 online courses for your 20s: bit.ly/WarikooOnlineCourses
Gadgets that I use: bit.ly/WarikooGadgets
The above links are on Amazon.
If you buy any of these using the above links, I stand to make affiliate income from it. 100% of this income is contributed towards the education of kids who cannot afford it. In 2021 we contributed 38L and in 2022 we contributed 53L.
appreciate you a lot
Link of excel ??
Excel link??
excel link is not working
Banks will hate you for this 😂
I remember I pre-closed my “first car” loan which I took from SBI. I prepaid by any amount (whatever was possible). I didn’t do any such calculations, my simple funda was: if I cannot grow my assets by 8.5%, I will not let my liability to grow in that same rate. 😊 Young professionals are lucky as they have these videos to understand finances.
Was it paid early bro ?
u can easily grow asset by 10%
Course cancel kaise kare bhaai 😢
Loss for older one as these kind of vedios were not there earlier.
Same pinch 🤏
When I need to refer any point from your video, I can just browse and in just a second I can get what I need, don't have to wait on an ad when I'm actually in a rush. At times when ads pop-up while browsing important financial stuff, it is so annoying.
Thank you for not monetizing youtube. You are amazing.
That is why you purchase TH-cam premium 😂
Nobody explains it better than Mr Warikoo. Thanks for the content. Have been learning a lot !
The key takeaways are:
a.) When "compounding" takes on with "compounding" it is only "break-even" that is left as a result.
b.) The additional EMI or increased EMI amount that we pay to the bank in the initial months is "valuable" money vs. "invaluable" or "devalued" money that we keep paying till the term ends (due to inflation).
So, it's a matter of choice what route you wish to go.
If you think you could have invested that extra (valuable) money that you've saved (by not paying to the bank in the initail months) & could have earned more "compounded" profit out of it (compared to what you would have paid to the bank), then yeah that's your call.
Otherwise, it is always a better idea to pay that money to the bank instead to close your loan early.
Nevertheless, excellent content as always! Thanks for dedicating time to record this and share with the audience!
Great explanation on confusion between pre closure of loan vs Investing that same money. 👍🏻
Can you also explain any preferred tactic on how to deal with Banks when the interest rates increase due to changes in repo rate. While I continue to add an additional monthly amount, my tenure keeps increasing increasing. My monthly EMI remains fixed.
@@anuragnigam Although, Im not very sure about it. This may vary bank to bank. But you can ask your bank to fix your interest rate by paying a fixed amount of money. Your interest then turns from floating to fixed. Additionally, the rates are expected to fall in the 3rd quarter this year, anyway. Due to various economic factors. No financial advice, though.
@@anuragnigamif your bank is private like indiabulls, shri ram finace plzz transfer that to any govt. bank . my father was also scammed by indiabulls bcoz they kept on incresing loan tenure every year.. but after transfering to pnb housing loan tenure is same from 2 years..
I got my home loan in 2010 for 20 years, I paid 1 lakh extra in second year i.e 2011 and 5 lakh in 8th year, I am left with only 6 emis now, My loan will be paid off until July, 2024.
Paying it off 5.5 years earlier.
This really works miracle.
I regret why i did not made prepayment in second to seventh year.
People reading this comment, do not do this mistake, please prepay every year...
So how much amount of Intrest you paid total
Thank you so much. I had been trying to understand this myself, this video will help me clear my home loan
Same here....thank you Mr. Warikoo❤
Today i collect some new knowledge....❤❤❤❤
Thank you sir❤❤
I adopted this for my Second Home loan and it worked fabulous. Thanks Warikoo 👍🏻
The concept of 10% increase in EMI is a very smart option but we have to understand bank has made certain EMI beyond which you cant increase EMI. So please consider that in your calculation aheet
Its an eye opener.... thanks a lot for the enlightening one.....tnx again....
Great excel sheet . Helps me plan my loan better . Thanks
Thanks. It helped a lot in managing my finances and plan it better
Great Video 👌👌👌
Best excel sheet
Wonderful Sir😊😊😊😊. Absolute help for me 🙏🙏🙏🙏🙏🙏🙏
So effortlessly and swiftly you have communicated such things deeply.. Truly appreciated and inspired.!!!!!
I wish I could know such things 5Y ago when I took car loan.. I was able to repay much of it early but at its last leg.. Past is past, I will use this knowledge for quick repayment of my home loan that I'll be starting soon. Thanks Warikoo ji.
Thank you for this knowledge content 🙂
Thanks a lot🙏 for the effective explation sirji, found it very simple to understand.... We got a clearity and confidence to repay our loans by saving our heard earned money and time . And the exel file was very much usefull... Thanks again
Thank you so much for such valuable information 🙏
Thank you sir for this information ❤
I am looking for this type of video. And I got what I wanted to see. Thank you Sir. It is really cleared all my doubts. Now I can go for what I want to do. ❤
Thank you so much for making this vid with such ease of explanation. Excel sheet helped too 😃😃
I have started my home loan recently and got a helpful video to save money in future🙌
Thanks Man😊, It Helped Me A Lot
Really great helpful video. It's mind-blowing
Loved the information yiu shared.. will definitely go for last option. Thanks again. Very informative .
Jaldi se comment kar deta hun likes mil jayenge😂😂😂
Thank you sir for giving valuable information. I will try to do same practice.
Thanks a ton for the video sir🎉🎉....
It’s very very useful and super easy to handle. I was searching this kind of excel in internet and I was only getting calculator. Thank you @warikoo
Much needed and excellent content
❤❤❤Love you, this video was really amazing. Thanks for sharing such an amazing trick
Amazing informative video Ankur, thanks a lot for this video.
love you sir for providing free financial knowledge which is necessary to each and everyone especially 20's
U r the best sir…the way u speak…the way u explain …the way u show ur decency …each and everything is best about u…i wish i could have acquired only 1% of ur knowledge
Thank you, Ankur Sir for detailed video. Although, this is an incomplete video. There are 2 more scenarios that are in the reduced EMI Option. 1) Additional Reinvestment of the reduced EMI amount in the Loan Principal Amount 2) Investment of reduced EMI Amount in equity market (Stocks / MF) at ~12% return.
Also, even if we ignore all of this the amount saved in EMI should also be added in the amount saved in addition to interest. I Agree that this might be less than the Reduce Term option but will provide better clarity to all your viewers. Let me know if I am missing any point in understanding this. Thanks.
That’s a great point. Missed this.
I believe, Ankur was focusing more on the EMI reduction so in that point of view - this is a great video. Ultimately, maximum people who are paying EMIs - don't have additional money to invest so better to re-pay once they have some additional amount which saves lakhs of interest :-).
Sir both points are valid but I still think point no 2 is good to go... Plz make video about it....
I was 100% sure that after finish watching this video , there won't be any such excel link in the description .And see that's exactly it is 😄
Thanks for uploading this video. It was very easy to understand with examples in excel.👍
I literally got something new to learn...and it's valuable...thank you sir
One of the most effective strategies for managing loan repayment is to prioritize prepayment when faced with surplus funds. The rationale behind this strategy is straightforward: if the return on investment (ROI) from alternate uses of the surplus funds is lower than the interest rate associated with the loan's EMIs, it is financially prudent to allocate those funds towards reducing the loan principal.
Ex.
Let say you have a loan at 8% Interest rate per annum.
If you have ₹1,00,000 surplus fund, try to generate more than 8% (₹8,000) income per year from them. If you can't do so, always pre-pay your loan first!
Again thanks for English captions. .. it will be helpful if all Hindi content creators add this English captions 🙏
Sir you are best. I am so happy. I go your way. Mostly i m so happy. 😮😮😮
you know what, at first i was thinking u are here only for selling things, but today i thought no i was wrong. Thank you for all this information.
Thankyou so much sir great video💗
Thank you so much Sir, very useful 🙏👍
Thanku so much ❤..it really helped
Thank you sir... For explains this content in common and better way .... Now i am going to pay pre-payment for my loan.... It id really valuable information.....
Warikoo ji.. you explained it so nicely, that even a common man can understand and execute. thank you so much for all your help. This helped me plan my finance better. God bless you.. and lots of love.
😊i have paid 5lacs for the loan of 25lacs and saved 5.5 lacs by teducing the tenure
Much needed financial solutions ❤
Ye hui na baat . Awesome calculation sir. Maza aa gaya.
Amazing guidance sir❤
What a video ❤ ! Just loved thnks a lot sir
Bank aise hi aam janta ko fanshate h 😢
Excellent sir. Really surprising. U r saving our hard earned money. Thnx v much
Very Helpful!
You are simply awesome…thank you for all the great work you are doing… 🙏🏻
Great inputs
You guys are amezing. You saved my lakhs of money. My soulmate who shared the video to me & Amezing you. My heart is thankful for both of you. ❤
My formula is to keep pre paying and reduce tenure(not EMI) until principal part becomes same as the interest part in EMI. So far i have saved 9 lakhs interest payment with 2.5l prepayment.
Thanks to Warikoo in one of the previous videos, he shared one excel sheet to calcualte and decide whether to do lumpsum investment or to prepay loan
This prepayment is possible only on Home Loan in case of Car or Bike Loan there is a restriction of max 2 times prepayment plus there is a 3-5% interest too
There should be some reason for other options, re calculate like this. Reduce EMI amount and extra amount u can invest and MF or stocks
Very informative kudos to u
Excellent sir my mind was block good information
U r super talented I like all your vedios 👌❤️
I would thank you for helping me in understanding and saving some money... I saw your same video earlier... Thanks again and my best wishes with you.
Sir really u changed my life my loan interest reduced thanks
Thank you i have already started my journey to save lacks
Thank so much sir for providing the excel sheet it really helpful. I actually already made my own sheet but the pre-payment formula was not working properly and that is when landed on this video. I have been consuming your content on Insta regularly. Great work with all the content created by you
Helpful calculator. Thanks.
Thanks my home loan emi is starting frm next month and this will help me alot... Thank you
Sir i have lot respect for you because you are the only creater who actually sloves problem. My parents just planning to buy a house but as my parents are old and they don't know much about finance things so it always been a my responsibility to know which thing will work best for us through your video i gather really important information about finance and life I'm just 19 years old but because of you i understand one thing very early in life is if i wanna be someone who improve his life first i have to fix finance.( I don't know if you gonna read this but you mean a lot sir😊.)
That's for sharing your thoughts and wonderful finance manging skills and experience.
Thanku so much sir ❤
Good advice sir......
Thank you so much for informative video
Great video to understand how to save money on loan repayments. 🙏🏼🙏🏼👏🏼👏🏼
Iske maze hi maze …
Wow brother
You rock
sir mene bhi bahot loan liya 30 ki age 80 lc ka le liya sabhi bank se 😂😂
ab aaram se aise hi payment kar deta hu 😅
I was under this dark cloud and can see some light now. Thank you sir
Great video by the way. Best advise is don't buy a house on loan. Stay on rent, you'll save more than it is mentioned in this video. Better to spend on your lifestyle, health and personal growth.
Reasons you should not buy a house:
1. There's no guarantee of life and nobody can predict if you'd be alive for next 25 years.
2. If you think you'll buy house for your future generation then first think that are you staying in the same house where your father and grandfather used to live. Your next generation will be capable to pay their own bills.
3. You can use the same money to invest somewhere so that you can have a secured retirement.
4. There are many more reason to not to buy a house. This is a big middle class trap.
Many billionaires still live in a rented house. Nobody will tell you this hack.
billionaires live in rented house becz they loads of money, but not middle class. Owning a house for a middle class family means a lot; rather spending rents for 30 K you can just pay the same amount to own a house
Thank you sir aise hi video banao
Brilliant effort
Lagta hai sir ne mera comment maan liya thank you sir.....
Fab sir....Thanks for this
Easiest way to explain 👌👍
It does not matter much.. I have played with these calculators multiple times over grow calculator.. Itni EMI bdhane ke liye paise hone b chaiye every month to pay the bank..
The strategy which I used is for first two years I did regressive pre payment but did not reduce tenure but reduced my EMI so that I can use my rest amount and reduce my emi monthly burden.. And after 2 years I did not reduce the emi but reduced tenure so that I pay less interest..
If you will try this on grow calculator then you will realize that no matter what you do total yearly interest varies by very small amount
Thanks a million sir. This is definitely gonna help me to achieve my goal.
Best video for understanding, how to make loan payments efficiently ❤❤😊
Very informative
Looking forward to to take a home loan from bank and i am gonna use this formula
Thank you sir, best trick
Great work Ankur sir.
I am scratching my head on creating 10% increase EMI part excel sheet. Really want to put my numbers into it 😅
if you increase emissions by 10% each year, then your 10th year emi will 90,000. Can you afford that?
@@deepakaralumalligesubbaray3318 I assume loan will be completed before that ?
Good job sir ,I follow u r rules.
Thank you so much. Jai Shri Ram 🙏
Best video for home loan repayment.❤
Thank you @warikoo. This excel sheet I have been looking for quite some time now. This is really very helpful.
Thanks again!! 👍
Mera download nhi ho rha plz help
I'm not able to alter any information it says Read Only option is active??
Nice video sir ❤
Thank you Sir for guidance
Ankurji thank you for your simple way to explain intelligent and complex things especially about finance without losing focus and key things ....very grateful for your selfless service...😊
Very useful thanks @
Bhut acha smjh aaya
Mind blowing calculation