Home loan prepayment Vs Income tax saving : Know the truth. होम लोन चुकाएं या इनकम टैक्स बचाएं ?
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- เผยแพร่เมื่อ 6 ก.ย. 2024
- Income tax rebate on home loans under section 80 c and section 24 are two options which everyone considers while taking a home loan. But is it a good idea to avoid prepayment of home loan to get these tax benefits? Swati b wealthy does the calculations here and tells you the truth about this. There are also some myths about the home loan being a cheaper loan and hence some people suggest to continue with this loan. How is the planning affects the EMI of home loan and how does prepayment of home loan affects your financial plan.
link for home loan pre payment video/ Save 30 lakh on a home loan of 50 lakh: repayment tips b wealthy, होम लोन कैसे लें, कितना लोन है सही
• Save 30 lakh on a home...
wow superb analysis... The most thought provocating line was... क्या कोई अपने घर को गिरवी रखकर निवेश करता है... kudos
Thank you so much Siddharth Jee for watching the video. Stay Blessed, B Wealthy
@@BWealthy Dear Madam, I have a query/concern against LTCG tax on long running mutual fund SIPS. If the fund is not performing well now and I want to switch over to better fund, I end up paying 10% tax even if I am not going to consume it but rather remain reinvested in another fund. (How and where can I share my full query so I can better explain myself and the issue I am facing?)
@@pallavibaliga8880 sir, there is no option... you have to pay tax... fund switch karna hai matlab....pehla redeem hota hai n then dusara purchase hota hai...
@@prasadcnavale Thank you sir..
@@pallavibaliga8880 अगर आई टी आर नहीं हे तो होम लोन मिलेगा
मेने भी 500000 का होम लोन लिया हुआ है। परंतु मेने कभी भी इसका इस तरह से विश्लेषण नही किया है । और न ही किसी फाइनेंशल adviser ने इस प्रकार से समझाया है। बहुत बहुत धन्यवाद।
I understand only one thing , try to clear debt and live peaceful life. " Peace" is big wealth and gives good health. There is no numerical calculations .
You stood up to your name Vishwamitra
Ya to peace le lo ya paisa kama lo .
Peace se jindgi nahi chalegi , next generation bhi peace mein hi reh jayegi , thoda risk lena seekho.
@@ashisharora6800
Dear Brother,
I had finished home loan in only 4 yrs against period of 15 yrs. Now investing all savings with full risk as now I have no any burden of EMI , doing my job without any fear.
This is the intention of this video.
@@vishwamitravyas4248 sir pata nahi aapne theek Kiya ki nahi , as per burden to Apne theek Kiya but earning point of view k hisaab se aapne kuch accha kaam nahi Kiya !! I know aap Meri baat se agree nahi Kar rahe , but I also run a loan and know the artefacts of earning !!
Vyas ji aap galat kar liye , woh amount aapko mutual funds mein average kar lena chahiye tha ya phir ek kaam karlete , 30 % HDFC bank lelete , 30% Asian paints , 20% Britainnia aur baaki 20 koi IT company aur bas bhool jaate.
Very clever and beautifully explained.. The conclusion is that try to save interest portion via part payment and close the loan asap... Make a peaceful life without any burden.
Phir baccho ki padhai ke liye bhi chahiye saara part payment hi kar denge to
Ma'am, one point I want to highlight which I was not aware before taking home loan: the interest on loan is the highest at the start of the tenure. And decreases gradually. And principle is vice versa. So prepayment during initial 3-5 years has lot of benefits. Can you please create video on this if not already done? It may help others before taking loan.
This is a process of all kind of loans..not ONLY for home loan
I think the logical approach is we should clear the loan with step wise approach basis on the payment capacity.
1. Avoid loan as much as u can if you have money in hand.
2. Start part payment immediately after taking the loan.
3. Focus on your needs and desire.
4. Ensure you have enough money in hand for your gray days
5. Reduce tenure 1st as the interest will come down drastically.
6. If you have capacity of paying regular EMI than do not reduce the EMI amount.
7. If there is a challange with regular payment than look for reducing the EMI amount also along with tenure.
8. Income tax benifits will always be their but reducing the loan amount through part payment will give you multiple benifits.
Thanks
🎉🎉
Very logical calculation and evaluation. This has been in my mind and now I am convinced to complete home loan as soon as possible. Thanks for the insights!!
Thanks sharing all the knowledge with perfect presentation. Here is point... If we invest 60k (saved in tax) every year in mf which gives avg return let's say 12%. "After 25 years, your investment of ₹ 15.00 lakhs will grow to ₹ 89.60 lakhs* @ 12% p.a."
watch full video without ads as there were no ads so , mam मैने २०१३ मे home loan लिया था । और उसका term ७ साल था। पर मैने उसे २०१६ मे repay कर दिया । और उसका part repayment करते वक्त यही सब सोचा था जो आपने ईस व्हीडीयो मे बताया । मेरी एक और सोच है । मै डॉक्टर हु और मेरी income cash मे है। मेरे पास जैसे पैसे आते रहते वैसे मै उसे fd करते रहता, tax बचाने के चक्कर मे cash नही रखता । ईसका benefit यह है की tax की amount तो एक साल के fd पर मिलनेवाले interest से निकल जाती और अगले साल से मिलने वाला interest income मे add होते रहेता ।
@@ashisharora6800 शायद आपने पुरा व्हीडीयो ध्यान देकर नही देखा । mam ने भी यही कहा है की early repayment beneficial है।
शुक्रिया आशीष जी अपना अनुभव यहाँ शेयर करने के लिए। Stay Blessed, B Wealthy
Better to use liquid fund over FD...
सर, मै भी यही सोचकर repayment कर रहा हुं.
पण मॅडम आता 8.25% दर कोठेच नाहीये. मी LICHSGF चे लोन घेतले होते. त्यांचे फक्त 1 वर्षच हा रेट होता. नंतर त्यांनी 11.8 असा रेट केला (न कळवता). हा तर एक प्रकारे सावकारी रेट आहे! महिन्याला 1%. आणि जर व्याजदर कमी करायचे असेल तर प्लॅन बदला आणि त्यासाठी वेगळे पैसे मोजा.
@@nileshshirsath954 SBI Maxgain या स्कीम चा लाभ घ्यावा ते LIC SBI ला फिरवून घ्या. ८:३५%
Simple straight and pure truth...far better than "CA" certified videos
Hello madam. Watching your videos on financial planning since few months now. I admire you for your presentation and communication skills. Also got clearity on many things related to loans, part payment, wealth creation etc. Special thanks for making this video on the confusion what to opt part payment or SIP for a home loan. You nailed it with figures and proof. Thanks again.
One request- kindly introduce yourself in every video at the beginning. 🙂
एकदम सही है मॅडम इतना पैसा बचा सकते है इसका हिसाब ही नही किया था .thank you for this idea .
Hi Mam, Your calculation is right, but I have a question here, as Rs value decreasing day by day.If I took a loan of Rs20 lacs, and pay in 20 years. Assume paying 20k monthly for 20 years,Rs value on 20 th year will be decreased. Am I Right . Pls reply , I am regularly watching you on CNBC aawaz.
@@saxenapprashant your point is valid but you will pay most of the interest in first 5-6 years and at this time mo ey will not be depreciated too much.
Therefore it is important too payoff in the first one third tenure.
आप बिल्कुल सही कह रही हैं कि लोन रिपेमेंट करने में ही भलाई है। मै आप की बात से सहमत हूं।
Thanks this is one of the best videos on home loan topic on TH-cam, most of the other channels are giving wrong info, thanks for making such great helpful videos. Appreciate it from heart👍
Fantastic explanation! Ma'am I have one more suggestion to add to your explanation in point B, where people say that the value of your house property is appreciating. But I would say that appreciated value cannot be enjoyed untill and unless you sell the property, which is highly unlikely to happen in general, as many people borrow to buy a house for residential purpose. So, if one wants to upgrade from current property into a spacious property, only in that case he can enjoy that value. Otherwise, the notional appreciated value of property is of no use. Would like to know your view on this point.
Once again I would say that the points you made are very important and relevant, as I have practically used the same in reducing my home loan burden from 20 years to 10 years. I kept suggesting these points to my friends and acquaintances for reducing loan burden. Thanks for your video.
Hello Beautiful lady, thanks for your analysis... once tenure is 50% done....interest amount goes down and at that time prepayment may not be good option. Suppose outstanding is 30L. Per month principal is 20k and interest is 10K. I have 30 lacs to pre close. In FD i will get 6% =1.80 lacs. But in pre close i will save interest of 10000*12= 12000(or less). Also consider income tax benefit on 120000. So prepayment is useful only if saving on interest is more than FD and Income tax benefit. I agree prepayment is good in initial few years, ASAP.
Please clear by example
@@sureshvadera5097 example already given above.what more details u want?
Thank you Ma’am 2013 se Mera home loan chal raha hai our Mai continues part payment kar raha hm our Aaj ke date me lagbhag khatam hone wala hai.kai fund house be muchhe bola aap shasta loan ko kyo payment kar rahe ho. Kabhi kabhi confident lose hota hai but aap jaise logo ke hone se positivity badh jaati hai thank you 😊.
I Agree with this but every year income will also increase.after few years say 7 to 10 years income may be so high with increase in inflation that the E.M.I would be nominal compared to income.
I bought a house in 2009 for 14 lac and now its market rate is 70 lac in 2019. My home loan interest rate is 8.35 and i have savings in FD which is giving me about 7 percent intetest, means I am paying only 1.35 percent and also getting tax benefits every year. I can invest my savings whenever i have a good opprtunity.
Aap home loan se tax save kr rhe h and FD pe tax pay kr rhe h
FD is taxable
@@chemistrybyheeralalnavoday2945 The FD is on my wife's name and one on on my fathers name (Senior citizen) and we fill a form every year for not deducting TDS (tax on FD) so actully there is no tax on my FD
Correct Pradeep, i dont agree with this video on tax saving part......the interest that we pay on home loan is 7.5% , so instead of part payment we can invest that money into long term tax free plans and also avail 30% tax benefit...at the end of 10 year when tax benefit part goes very down, take all the cumulative money and clear the home loan....by doing this we are clearing the loan in 10 years and getting tax benefit as well
Bhai tumne ghar saste me liya tha...aaj ghar sasta nahi hai
Bas itna he farak hai
तुम्ही ज्या प्रमाणे ही माहिती समजून सांगितली ती खरंच उपयुक्त माहीती आहे.
धन्यवाद🙏🙏
You explain the things very clearly and I feel like I am attending a classroom training from a very experienced trainer.
Been Living Peacefully since I was 35 yrs old, with 2 homes fully paid for. Helped a lot in this Pandemic.
Very methodical break down. I didn't learn anything new, but thumbs up to the approach this was explained and argued! Part-payment absolutely makes logical sense. Unless this is 1993 and you are buying shares of Infosys ;)
This is totally true and sensible. If you do not prepay and make investment, you are not only paying massive interest and you are also blocking your amount which in emergency you won't be able to take out since it would not be significant gain or maybe in loss. most of the bank allow you to take out your prepaid amount in case of emergency. Think of it as you are holding the prepaid amount in your loan account with interest guaranteed more than FD right from day 1 which is hedging the loan interest.
on MF yearly interest of 10 - 15% consistently is if not dream then unrealistic, specially if you diversify and if you don't diversify its too much risk. Better not to fall for these tantrums and do it as the rule book say. You are in extremely lucky few if you have no debt.
And yes she is so pretty.
Superb combination of intellegency and beauty.....
Excellent. Most of the other people don’t disclose this comparison that what you are losing while saving 60k in tax savings.
Consider person in stead making a part payment of 5 lakh amount, he make an FD with 7% interest rate. Interest on loan is 8.25%. 30% (tax exemption) of 8.25 comes out to be 2.57. So 8.25 - 2.57 = 5.73 is effective interest that person will be paying on 5 lakh which he did not pay to bank. He will be getting 7% (Make FD on name of person who don't have income) from FD. Now compare which is good. Also any financial planner will suggest you to keep cash in hand i.e. invest in instrument which we can liquidate easily. Here you can choose FD as investment instrument. In future if you need money (let's say you want to buy car) you may end up paying more interest than home loan and you won't even get tax benefit on that interest. Think about it ...
FD ka interest taxable income so deduct this for actual income after tax for comparison
A MORE BETTER OPTION . PAY EMI AND INVEST SAME AMOUNT IN RD ACCOUNT WITH ANY BANK OR POST OFFICE FOR HALF TENURE OF HOME LOAN AT MID TENURE YOU END UP WITH A HEFTY SAVINGS AND AUTO EMI PAYMENT FUND . THAT YOU CAN PAY ALL FUTURE EMI'S FROM INTEREST OF SAVINGS ALONE AND ENJOY ALL TAX BENEFITS AS WELL.
@@FEN423 it is a complex calculation but i have come very close to it. First of all one should invest only in FD & that too in big nationalised bank like SBI. Not other investment involving uncertainty are to be considered.
By & large conclusion is if you have home loan of less than 25 lakhs @ 8.25% or more, & you are in 20% tax bracket then you save Rs 100-500 per month by keeping the money in FD instead of part paying to bank even after paying tax on interest of FD. Yes just Rs 100-500 per month but you build a corpus as an emergency fund which helps you sustain for long if you loose your job or had an accident which restricts you to go to job while your EMI continues.
If you are in 30% tax bracket then saving is more. Of course this is after you make the part payment to enjoy full benefit of 1.5 lakhs. Calculation is bit complex & no one has given clear solution yet as far as I know.
After understanding this calculation, i realised that since money has a time value, what really matters is how much loan you have & not really the tenure. Due to this when I changed my loan from one bank to another i increased my tenure from 11 years to 20 years & reduced the EMI to enjoy more tax benefit & to build a corpus in SBI FD.
It is truly very interesting.
What you mentioned is true by & large, & one can save more money by making FDs in parent's name, but calculation is bit complex & one has to estimate exact amount of part payment to enjoy full benefit of 1.5 lakhs. Also Pls read my other reply.
After understanding this calculation, i realised that since money has a time value, what really matters is how much loan you have & not really the tenure. Due to this when I changed my loan from one bank to another i increased my tenure from 11 years to 20 years & reduced the EMI to enjoy more tax benefit & to build a corpus in SBI FD.
It is truly very interesting.
@@FEN423 Read comment carefully.. solution for income tax on FD is mentioned
बहुत सटीक जानकारी और एकदम सरल गणित द्वारा आपने समझाया है मैडम।हम जैसे लोग इस गहराई तक नही सोच पाते।आपका धन्यवाद
Right 👍👍👍
Nice presentation man....Earlier I also used to believe it is better to take exemption on tax u/s 24 and invest that amount in some instruments.....now things are clear....
Didi, main aapki baat se 100% sahmat hu ki koi bhi loan sasta nahi hota, uske interest ko chukane me hamari mehnat ki kamai ka rupya jata hai. Jab tak bahut badi jarurat naa pad jaye karz (Loan) kabhi bhi naa le.
Madam kindly make video for income tax return for govt employees
बहुत बढ़िया वीडियो। में हमेशा से ऐसा ही करता आ रहा था , लेकिन खुद के कदम पर इतना विश्वास नहीं था। ये वीडियो देख कर खुद प्र भरोसा बढ़ा है । धन्यवाद ।
You look like model not a CA😊
Anyway the way you explain it is perfect...
Salute to you Madam ji for clarification of doubts most of the people have
Explained really well..I was doing the same mistake,focusing on investment and tax saving rather than part payment of the loan. Thanks a lot.
Boss she's not Expert, read about Time Value of Money and Appreciation in Real Estate sector.
One more argument in support... Opt for new regime and you will anyways save 60000/- if you are in top bracket without any investments ...compared with old regime without loan
mam thanks for your explanation, but i have a doubt regarding money valuation, considering 4% inflation rate the amount paid after 20 yrs is surely much less than what it is now, so considering that factor what is your advice
Madam, Home loan interest is actually a very less interest if you consider the price escalation of various building materials, a person returns a devalued money to the bank, the simple logic is that if a person doesn't have required amount of money to purchase a flat or to build a house than he has to buy money from the bank which we called interest, next, it is very noticeable that banks or licfl donot like if you go for pre payment time to time, they somehow covinced you not to do this or impose various problems, but one time loan closing they rectantly allow, no doubt if some one is desperate than he can do this but after all people donot like to approach same person , same people in the bank. Your presentations are always very beneficial for us, I watch your video from begining to the end.
स्वाति जी आपने तो आंखे खोल दी होम लोन के बारे में धन्यवाद👌👌👌👌👍👍👍👍
मेरी भी
शुक्रिया नीलेश जी। Stay Blessed, B Wealthy
Seedhi baat like arrow...thank you madam ji, mera confusion clear ho gaya...bhale 2 saal purana hai but still very relevant
Just a Genuine Compliment..!!!!!!
She is the perfect example of beauty with brains
Thanks, Miss
Mai to sirf maidam jii ko hi dekh rha hon...... Bahut achchi personality hai.... wow
Thank you. I listen to you like a child.
Thank you to you too for watching the video Amit Jee. Stay Blessed, B Wealthy
Increase in value of house is minor, a house is for live in not for sale. Objection of viewers overruled. She is 100% right.
Madam, please accept my sincere appreciation on the way you explained the huge benefits of part payments....We as parents keep saying our kids to do, they would not. I'm sure your simplistic style will convince them now...Thanks
Thank you so much for your kind words Sir. Means a lot to me. Regards
Madam itna ache se Kabhi Nahin samjhaya..main aaj se hi loan chukane ki Puri koshish karunga with in 5-7years .. Very Very thanks for videos
Dear Mam you lokk like Jeniffer Lawrence in this new look
Chehra umrah batadeta hai..
Ageless beauty.
Presenter style is like international speakers, nice!
Good information, thanks 😊
Jonathan madam ki yad aagyi mujhe home loan lena he bahut din se confuse ho rha tha prepay ya investment ab sab clear h. Thankyou vary much mam
Sorry mam... आपका गणित ठीक नहीं है... 50 लाख के घर कि कीमत 20 साल बाद... सिर्फ 80 लाख नहीं होंगी... 3 गुना होंगी... नहीं तो किसी भी घर कि कीमत कि तुलना करलो... जो अब से 20 साल पहले के है... और अगर अपने प्लाट पे घर बना है तो उसकी क़ीमत 20 साल मे 10 गुना होती है....
Well-done mam
thx mam
Right
Ek example Diya hai. Ek saman waqt ke baad price same hi hoga. Chahe aap loan 10 saal me paid kre ya 20 saal me. Chahe uska price 20 saal baad 3 cr ho jaye
घर की कीमत तब है जब aap उसे बेचना चाहते है, और ghar कोई नही बेचना चाहेगा 20 साल bad...esliye घर की कीमत लगाना सही नही है....ager aapko बकाई ghar ki जरूरत hai तभी home loan lo..barna utne hi ईएमआई ka म्यूचुअल fund mai lga do 15 percent bhi return milta hai to 20 साल bad 10 गुना hona clear hai
Plz mention at what stage prepayment to be made ie. At earlier stage, Middle Stage or at end
Also include Inflation, Liquidity in your analysis
Overall it's very good analysis for middle class ppl
there are two option in part payment. 1 reduce emi. 2 reduce tenure. both r benificial and saves intrest. But if want instant feeling of saving, go for reduce emi option. And then u can think of buying another home of the amount of emi u have saved.
Aap bahut sundar or intelligent or honesty ho.... jab aap bolti hain to yese lagta hai moti gir rahe hon.... thanku
My father is a bank employee and he is getting home loan at 6.75 percent simple interest. So in this case, shall we take maximum loan or the same applies what you said?
Take loan as much as ucan afford
Debt point is very true! Any sort of loan is really bad!
But there is a depreciation value of money! Means, the purchasing power of 10lakhs today, will be lower after 25years! So, taking a loan and putting into earning assets is important!
Remember, Property is not a means of investment! It needs value addition (like builder makes on a small plot)..
Stock Market doesn't have guaranteed returns, it has over 15% return if put for 10years+ (Select only top two companies of each sector, follow diversification policy)
Further Loan & interest rates are going to go down with time as per economics, so EMI is always going to go down!
Finally, save 70% or more and spend max 30%
Thanks for the analysis, its better to repay in parts
आपकी जानकारी बहुत अच्छी मेम।
जानकारी देने के लिए आपका बहुत बहुत धन्यवाद।
भगवान् आपको हमेशा स्वस्थ और खुश रखे 🙏
Thanks mam for Clarifying all the aspects of home loan... Really Appreciate your efforts.
👍👍
बेसिक मोटिवेशन की ये खासियत होती है कि वो असरदार ही नही बल्कि सीखने में आसान भी होता है। यही नियम है। और नियम कभी भी बदलते नही।
Well, you still forgot to consider inflation post that the effective tax rate will be 2-2.5% only.
Still you are paying at least 2%. Her point is why to pay even .01%. remove burden of loan at the earliest. Simple!!
Everything appears to be correct, except that the value enhancement of the property in next 10-15 years. I think it takes a jump of at least 300-400%... It can be checked practically.
Maine kaha bhai thaamba.....Cute .. 😊☺️
Thanks a lot, I had done exactly the same for paying back my house loan as you have recommended..had done minimal calculations then but realised early payment was the key.. Now with detailed calculations, you have substantiated the same..More so prepayment provided much relief and peace of mind.. I think your video will provide valuable guidance to others.. great show 👍
Ek kaam kijiye. Calculate FD maturity for 50 lacs after 20 years with 7% interest rate. And calculate interest+ principal paid for 50 lacs loan after 20 years with 9% interest. U will see the FD amount will be more...
In FD you have to pay 50 lakh and you will get interest after 20 years .... here you are paying interest from 1st month...so can't compare
Compare with recurring deposit
@@rdkandgaonkar I am just saying If I have 50 lacs in my pocket and if I want to purchase home I will go with loan instead of spending those 50 lacs. I will fix that money.
@@Self-Seeker I've had loan of 25 lakh for 20 years I've reduced my loan tenure by part payment and about to pay my whole loan in 7 years. This is how I played smartly. Why to pay EMI till 25 years and pay double. After completing my loan I'll have the property then again I can think of some investment or whatever it's. I agree with her. She's right and I've done this practically. Be wise and always think twice.
Brother 20 years k bad due to inflation apke paise ki value bhut Kam rah jayegi.
@@Self-Seeker galati krenge aap
50L par 25 Y ka intrest 68L
50L par 10 Y ka intrest 23 L
saving 48 L
thoda upar neeche hoya hai to mana 45 L
yani ki 10Y tak agr pr month 4000.. (40000ka 10% )agr extra jama krte hai to
loan 10Y me khtam.
yani ke saving on intrest 45L lumsum.
yani ke 10 y ke baad ke 15 y me saving 45L. yani 3 lac pr year. it means 25000/ month....
to agar abhi 4000/month dete hai to aane wale 15yme hum 25000/month bacha sakte hai....great Idea
We needed this knowledge
I am glad you liked the content of this video. Stay Blessed, B Wealthy
Namaste mam,apke video se bahut fayde ki jankari milti rahti h.Mai apse Janna chahta hu ki..
1.Kya home loan lene ke liye land lord hona jaruri h..
2.kya bank ka a/c usi state/district/village me hona jaruri h ya other state me bhi chalega
Sorry but Not agreed ... Becoz tax benifit and return in amount investment and increase in value of house simultaneously hoga. And aapka comparison sirf ek time me ek option ke saath he..... I hope u understand . But aapka part payment ka idea badiya tha
Thank you for sharing your point of view Ashish Jee. Stay Blessed, B Wealthy
She is not considering various factors....she just showed 16L saving on interst vs 3L tax saving....the part payment that i did not do and invested somewhere else will grow and after 10yrs, i do the part payment with increased surplus...so i get tax benefit as ell for 10 years and at the end of 10 yrs i clear my loan also
almost 90% doubts is now clear maam. Thanks alot for your video. Now, in 2021 we can see offer of LIC regarding waiving of 6 EMI on home loan. Will you please make video on that , it would be great help to me and others to understand the things before taking home loan.
25 saal main zameen ( house) ka rate 50 se 80 nhi, 8 se 80 ho jaata h
Hmm. 80-90% case m zameen nhi flat hi loan p hota h. And flat 20-25 saal m kabad ho jta h
I LOVE YOUR STYLE AND VIDEOS... KEEP GOING .. I am also planning to BUY a new home in MARCH 2021 and your videos are really helpful 😍
Madam,
Correct information.
खुद का घर होना त्या हे वो कर्ज परही क्यूना हो ' यह भी एक बात होती है | इस लिए भी कर्ज लेनापडता है |
Superb , clear cut . Lots of patience while explaining to all those who has raised fingers. ... unki Ungliyon ko sahi se kat diya he mam aap ne 😂😂😂
Gosh, she's so beautiful
Indeed. Beauty with brain.
I want to know, getting Loan on LIC policy to make a part payment is good option or not
What about Max gain . Scheme of SBI . is it useful
@@ragibehsan2099 not at all. Now you need to factor in loan interest amount that you will be paying on policy loan. And remember, though the interest is simple rate, if you don't pay for a year, then it will be added to your loan amount, thus you will be paying compound interest only.
🤣😀🤣😀🤣
Men will men
Dange Saheb 😛🙏👌😀👍
I think, ur 1st logical finance guru on TH-cam ...also 1st person to deliberate that loans are not good at all ......👍👍 thanks for sharing such video
Simply make 1% of emi SIP investment of the same tenure, we will get full return what we paid as intrest and whatever emi we paid is the rent
Calculated on the basis of cagr 13%
Genius
I think when you show tax saving of 3,00,000 in 5 years. You should also add in that interest we will earn from investment we can do instead of part payment. Although we should do part payment to reduce the debt and most imp. Headache of loan to make mind peaceful.
Wah bahut khoob ..... I also believe so ...once you have arrangements...clear loan immediately
Thamba👍👍👍
Very practical video with lots of common sense.
आपके लंबे बाल ही अच्छे लगते थे।
Looking pretty in short hair too👌👍🙏💇
Truly said madam, it doesn't matter if it's having lesser ROI , debt is debt ..one should always thrive to be debt free in life ASAP.
Such a dumb calculation. Whenever you are paying the EMI, there are always two parts: Principle and Interest. At the beginning of the repayment period, you are paying the highest amount of interest, and the interest component keeps on decreasing as the year goes on.
At any point, whenever you are in the 30% tax bracket and you are paying 2 lakhs or less as the interest component, you are actually getting 30% "rebate" on the interest rate (as you do not need to pay tax for this amount). Let's say your home loan interest rate is 8.4%, so actually, you are paying as per interest rate of (8.4 * 0.7) = 5.88%, which is less than most of the FDs.
Hence, whenever you are in the HIGHEST TAX BRACKET and you are paying LESS THAN TWO LAKHS as the Interest Component of your EMI, you SHOULD NOT PREPAY OR FORECLOSE THE LOAN.
In fact, if you have a good reputation with the bank, you should just keep on paying the interest amount, not the principle, so that you keep on getting this tax benefit. You need to be smart to save tax legally when you are a salaried person and are in the highest tax bracket.
FD k interest bhi taxable h bro.
And if same 30 percent tax bracket no FD available with 8.4 percent return
Souvik kulay please reply my query
@@jaihindjaibharat4956 You are right. Though there are sections like 80 TTB, introduced in 2018, which is only for the senior citizens. But for non-senior people, there is no such option.
So the only solution is, invest on behalf of your non earning family members. You can have a joint bank with them, where the primary member is not you.
There are also another option to inverst, which is tax free but risky, like long term mutual fund, which is tax free upto 1lakh profit per year.
that sarcasm in your tone is absolutely splendid !!
Ma'am what if ,the bank deducts the interest First? Will there be any benefit in pre paying the principal on which the entire interest is already paid. Kindly reply
Can confirm, monthly extra payment of over and above your defined EMI amount, will be deducted from the principal only. Checked with bank.
The last advise regarding the bifurcation and handling of lumpsum funds was truly required. Keep educating us with your knowledge and industry experience,
So beautifully explained. I don't know how I missed your channel earlier but I'm now not only a subscriber but also a big time fan!!!
An excellent explanation and justification for prepayment of Housing Loan. Thanks a lot Madam👏👏👍👍🙏🙏😊😊
Bahot hi ache se explain kia!! I got confused with other videos. This clarified everything ❤❤
Brilliant mam
Myself is ca.
And i can say u say absoluty correct.
8th wonderful of world.
Great. If investment would be more beneficial then instead of giving loan bank will invest the money. Good analysis.
That's why selected new regime, not taken house, invested in business. Constructed house but not taken any loan for house. For business took personal loan but it's giving me profit. Now I am going to apply cc loan for business.
Excellent explanation no one has such clarity of explanation
One of factor is time value.
Consider emi is Rs. 20000 and loan repayment period is 20 years. Value of 20000 will be less year by year. consider this point
Mem aapke is video se prabhavit hokar maine 15 saal ka loan 5 saal me chukakar 1 car ke paise bacha liye.
Mam aap kafi accha video banate he and explain bhi karte he, mera question he ki ghar lena chaiye and loan pay karna chaiye ya rent par hi rahena chaiye ??
मे १०० प्रतिशत सहमत हूं आपकी calculation और advise से। आप बहुत ही आसान तरीके से समझाए है।
ekdam barobar....... shuru se yahi mera point of view hai ,.....
मैडम आप का वीडियो देखा जिस तरह से आपने समझाया उसी तरह से से हम भी अपना अरेंजमेंट कर रहे हैं बिल्कुल सही है, thanks madam
I got your point.
1. Prepayment is essential to pay the least interest amount and your one extra EMI & 5% extra EMI is really a good remedy.
2. It must be in our mind that total principal and interest amount must not exceed total house valuation at the time of complete loan payment.
3. Tax benefit in home loan is an added advantage, but it is not comparable with prepayment, as the monetary benefit in prepayment is much higher.
Now Madam my few queries:
1. If any both spouse is maintaining 80C tax benefit of 1.5 Lakhs and 50K NPS for a long time.Now they are planning to buy a house with 64 Lakh loan, where EMI amount for 25 years tenure is 35% (as per your thumb rule) of total net salary. Now considering the EMI and as usual investment, total 55% of total salary will be used.
Now kindly guide us whether such loan amount should be taken? If taken then whether our pre running investment should continue? If it can be continued, then How? Lastly how such extra repayment of EMI along with such recurring yearly investment can be possible?
If not possible, then guide us where should we change our planning? Whether it the loan amount or tenure or cutting regular investment or anything else?
Please suggest.
How we can choose Ppf vs SIP. If have a planning of 1.5 lakh investment in every year..
Thanks for informative videos.
She is right, loan is loan.. you owe something. I have a home loan, stocks, mutual funds, PPF and Fds. After doing math and all my experiences with stocks and mfs. I can strongly recommend early payments towards over all other options except PPF.