Check out the Excel sheets we spoke of, in the video: Pay off vs Invest: tinyurl.com/3ynzkb6d Pay off loan early: tinyurl.com/2s4hpu84Check out the Excel sheets we spoke of, in the video: PS: Thanks to Pranab Pathak for sharing the Tax benefits excel sheet with me, that prompted me to make this video. My first book is out now! The title of the book is also my life motto: "DO EPIC SHIT" Get yours NOW: ankurwarikoo.com/doepicshit Subscribe to my all new Shorts channel, warikoo Shorts, and learn personal finance and career tips in less than 60 seconds! t.co/pMdPNe4Quf
But the problem is most of the banks make it really diifficult for the customers to make a simple extra EMI payment .They will ask you to visit the branch instead of providing a simple online payment facility on their website.
Great video Ankur! Paying an extra EMI per year is a bit overrated, but increasing your EMI by 10% makes such a huge difference. You must also consider that rate of interest decreases once the outstanding principal falls below 30 Lacs.
I took my first loan when I was 33 yrs old. Now I'm 46. I have got 2 flats, 2bhk given on rent and live in 3 bhk. I am fed up of loan. I just want to feel how life is without a loan. No matter what the investment returns are I still want this heavy load out of my mind and life forever.
Hey Ankur, the most crucial aspect is missing here is if I have started loan of 50 lakh and interest rate is changed after 24 months then this calculation goes for toss. Example, if I used this excel sheet now to decide whether to loan repay or invest and outcome comes as invest, then in future when I see that my interest rate has increase to 9% from 7.5% which is current situation then repaying loan would be good option. so maybe you can consider interest changes in next video. I believe such idea would help people to understand the risks and advantages well.
Hi, I think you have made a mistake in the first part of the video where you were discussing whether to pay off loan or invest at 12% when you got a lump sum amount of Rs 3.00 lakh. I feel "Opportunity Cost" is the concept involved here. Opportunity cost is the loss of other alternatives when one alternative is chosen. We can simply understood it by a simple example. Suppose person A lend Rs 3 lakh to person B at 8% interest rate (compounded annually). Now B lend the same money to person C at 12% interest rate (compounded annually). After 10 years C returns the entire amount (principal + interest) to B. Now, on the same day B returns the entire amount (principal + interest) to A. Since B got an interest rate of 12% but he have to pay at just 8% interest rate to A, then, definitely B earned something in the process (around 2.5 lakh). This example and the problem you have discussed are one and same. So we should invest Rs 3.00 lakh at 12%. This is true at all stages of your loan repayment. As I said above, "Opportunity Cost" is the concept behind this.
Was thinking the same if you can get better return than the interest rate you can always invest. Wait till the amount reaches the remaining principal amount and repay the loan. This way you can close your loan earlier and save on interest.
Yes you are correct. Even I started calculating how’s that calculation happened. Mathematically you should always invest when you are able generate more return than the interest you are paying. Otherwise according to Ankur’s mistake banks will not be to make profit😂.
Yes it's very informative. Before paying 1 additional EMI or increasing 10℅ of your EMI every year. Visit the financial institutions to make sure your additional EMI adjusted towards your Principal Amount.
Do a normal NEFT to your hoam loan account, it gets deposited to your principle. Don't really have to check anywhere. I would suggest to do a SI of 10% ammount instead of increasing. You can stop this SI when the interest component becomes low.
Regarding the 1st point, You forgot that we are only paying 3 lac, and still have to pay interest on the remaining amount. Thus the final interest saved will not be 7.64 lac, it will be only approx 2.84 lac.
Good Video. You are guiding us by saying if we increase 1 EMI per yr or some EMI % per year it will help in reducing the tenure and interests, But the important thing is how to approach bank for that process. If you guide us on that process that will be helpful. Please think of it, we need a video on that.
Hi Ankur, this is awesome way to look towards the calculation. No One would realize the IMPACT of paying just 1 extra EMI Every Year. Thanks a ton for such a lovely Video, I have forwarded to many of my friends who have taken loans. Just had 1 query/doubt about the calculation about the extra EMI Per Month in the Pay Off Loan Early sheet. Found one bug in the calculation. Wont be possible to explain it in the chat here, will be great help if we could connect. I may be wrong, but as lot of people Follow you so just felt we should make double sure what is reaching to them is correct.
Thanks for shareing precious information, in the past i applied same terminology and cleared my 15 year loan in just 7 years by just paying a extra in every 3-4 MONTH, This act really motivates you.
It was one of your best video ankur...really thanks for your time...its a life changing video...I know some smart minds are already doing this practice but for major chunk of population it will blow their mind
Sir online transaction me fraud, money fraud par bhi ek video banaye. Kese fraud krne vale, ek Puri real situation create kr k, paise nikalvalete hai logo se. It will help a lot of people.
सिंपल सा सवाल का जवाब देदो- 13 वे महीने मे 3 लाख लोन चुका दिया 20 लाख के लोन मे तो बाकी 17 लाख पर तो interest दे ना ही पड़ेगा ना और mutual fund से तो 12 परसेंट का return से 6 लाख तो आरहे है ना, फिर pay of the loan कहा की समझदारी हुई, Mr गणितज्ञ
Sir the issue with all this is, banks have their own rules for prepayments of loan. They charge extra for prepayment. Also won't allow prepayments for too many times in a year. Won't let increase the amount of emi. There r 100s of such rules
Great calculations and the use of excel.. but one thing which is not factored in your calculations is the rapid changes in the ROI done by the banks coz of changes in repo rates
A truly amazing video ankur ji, I’ve found the excels of utmost importance and will use it religiously ! Please keep making your financial videos , truly they are like non other
Hi Ankurji, I like your videos very much as they're conceptually very sound and clear. Some below are my observations regarding this video wrt information you provided. 1.Principle portion from regular EMI of home loan seems to be sufficient for tax benifit u/s 80C as this section also covers Employee PF contribution by default. Gradually, principle portion of EMI +PF contribution overcome 1.5 lac (80C limit). So I think additional repayment shall not be having benifit to that extent in view of tax exemption for 80C. 2. Interest portion of upto 2 lac is exempted from tax that also would be reducing in nature so eventually total tax benifit would be decreased accordingly. Other one is opportunity cost of investment that could have been made if it was not diverted to loan and the difference of that of two options may be effective benifit if we pay home loan in early stage.
Hi Ankur, very helpful information to help everyone to payoff their loan earlier and stay debt free. I also believe if a person is paying their EMI and parallel to it they can have a long term sip for 10 to 15 years to create a large fund from where they can pay off the remaining loan amount before the loan tenure date. What do you suggest?
I really appreciate your way of explanation for loan repayment...I am doing it but I have just 6 years left out of 18 years loan in which I have paid about 4-5 lac as advance payment , and in next month likely to get another 2 lacs and my balance due is Rs 11.67 lac should I pay advance or should I invest guide pls. ...
Ankur, thanks for the explanation and for sharing the sheets. I have a question regarding the calculation you have in Pay Off vs Interest. Cell B10 doesn't take into account the lumpsum amount invested (B5) while calculating the interest. There by the decision cell (B14) is incorrectly comparing the gain from investment with the entire interest amount irrespective of the lumpsum amount you have deposited towards the loan principal. Can you check this please ?
Excel1: Did anyone notice that he is comparing only the returns earned over the invested amount with interest? Why? Isn't that a blunder? For people who have a home loan with rates still below 9%: There is always an intangible benefit associated when you have cash in hand with you. It can always serve you in the time of need. But if you pay off the loan, and any emergency comes up, you are not going to get another loan at the same rate. The best you would get is a personal loan somewhere around 10 lakh-ish (considering a good middle class salary) at a much higher rate (say 14%). Having a 20L corpus that you can liquidate within 2-3 days is far better than paying off a 25L debt that doesn't hurt much otherwise. Think long term, build a corpus. Sit on it and relax. When you build enough sum of money, pay off the debt in one go. This video very conveniently ignores a lot of things.
I usually love your 15 - 20 minutes Because you cover everything which his highly needed.... Thankyou so much ankur sir for giving more efforts for making such informative and influential videos ❤️
That’s great sir.. very well explained. Appreciate your efforts to create this excel and explaining each point clearly.. God bless you and looking for more such videos
Dear sir, Regarding, Investing vs Loan repayment... I think your analysis may not be entirely correct. Simple Understanding is, If someone is giving you money at 5% and you are lending it a further 5+%, you will be in profit. I would love to take feedback but I think the problem with your method is, when you give your 3 lakhs to the bank it will reduce the interest component and your 3 lacs also is paid towards the principal. However, in your excel, for the investment, you are considering only the gain part and not the principal of 3 lacs. Also, in field "You will pay interest of:", why are you considering the whole interest... should it not be just 3 Lacs bonas's effective interest?
This is so awesome, Thank you so much for making such videos for ppl like us who find it difficult to understand the nitty-gritty of a financial world. I really appreciate your efforts and knowledge. One thing I would like to bring to your notice is that the link for Payoff Loan early is not working.
Just a suggestion to this thread. There is a way of doing a 0.1% of your home loan as a monthly SIP in Equities which would pay off the interest component of the home loan.
Thank you so much.Its a great eye opener , i have decided to prepay the loan. In the income tax excel sheet another option with lumpsum/ bullet payment at one point could also be tried.
Thank you very much sir, after watching your this video , I made it a mission to finish my 72 months/ 6 years of personal loan as soon as possible . I got success in completing the loan in 32 EMIs only . I am feeling relieved now .Thank u so much sir
Comparison should be done based on the amount I save if I put in 300000 at the end of 12th month with the profit I made in Mutual Fund. But in this excel the entire interest amount is compared with the mutual fund profits. Not a fair comparison. But yes mentally and emotionally it's always good to close loans quickly.
Incorrect comparison. As per u, 3lcs bank ko de ke 8 lakh approx aap interest bachate hai, but aap invest karte hai to wo 6lacs profit hota hai so aap aapke pass 9 lacs total hai(as per ur calculation) Still I will be in profit of 1 lacs (9L - 8L). R upar se tax saving.
Dear sir, I think you missed the point in the very first part that … 8 lakhs( approx) is the total interest that you will be giving over next remaining 9 years and 6 lakh (approx) is the return that you will be getting in next 9 year over 3 lakhs investment. So a crude calculation will say that effectively you will pay 2 (8-6) lakhs of interest net where as if we would have paid off the 3 lakhs instead of investing then .. still we have to pay the interest on remaining loan which will be 6 lakhs (approx) which is much higher than 2 lakhs we were paying in net when investing. That is the gain we will have form higher return and power of compounding. I hope I’m making sense.. though not explained in a mathematical way.
I feel the sheet has calculation errors please do check the formula in column E. Please make the necessary changes. The sheet and video gives an incorrect payback schedule.
Great video! You first calculator is wrong. When deciding between making a lump sum payment and invest it- the calculation should be between the interest component reduced for that amount only and not the interest due for entire principal (as in your sheet)
Warikoo sir, big fan! There is a mistake on your calculation. Example :- if I have a 10 lac loan and in the first year I have to pay an interest of 80000 at 8% PA. If I have a lump sum amount of 10 lac so instead of paying off the loan I will earn 15% return on investment generating 150000 every year. Paying off loan is not beneficial if I can generate more return on my investment in some other asset class.
wrong calculation, we are not paying 8 lakh interest on 3 lakh loan. we are paying on all remaining amount from 20 lakh. so if we pay 3 lakh now we will not save 8 lakh we will save something between 2-3 lakh max
I have asked the same thing to bank. They clearly mentioned that if you want to pay your amount before the loan duration. In this case, You need to pay prepayment charges also.
You don't have to pay prepayment charges a) if the amount is less than Rs.5 lacs or b) if you're able to show that you're prepayng out of your own funds, showing your bank statements for 3 months.
Ankur Sir.. I took 20lakhs ka homeloan for 20 yrs. My EMI was Rs.16500/- pm. I close it in 5 years... My salary was Rs.50k. Every month I made FD of 20k. so in one year its around 2.40 lakhs. and also invested 50k per year in ICICI prulife... so for 5 years i invested 250000 and when i withdraw it I got 285000.. and before four closer loan i took personal loan of 2.50 lakhs for 3 years with 11% pa interest rate... so instead of giving 45 to 50 lakhs in 20years to bank I only pay for 5 years.. that will be max 4 to 5 lakhs interest to bank..
Hi, unable to understand the math here. 5 FDs of 2.4lac is just 12lacs and investment of 2.85lacs, so just 15 lacs in total. How you paid the remaining amount in just 5 years!!
Hi Ankur! It was really an eye-opener for me. Currently, I have my 5lakhs of Education loan. So my question is: Kya me 3 extra EMIs ka divided by 12 karke every month little extra de sakta hun?
Check out the Excel sheets we spoke of, in the video:
Pay off vs Invest: tinyurl.com/3ynzkb6d
Pay off loan early: tinyurl.com/2s4hpu84Check out the Excel sheets we spoke of, in the video:
PS: Thanks to Pranab Pathak for sharing the Tax benefits excel sheet with me, that prompted me to make this video.
My first book is out now! The title of the book is also my life motto: "DO EPIC SHIT"
Get yours NOW: ankurwarikoo.com/doepicshit
Subscribe to my all new Shorts channel, warikoo Shorts, and learn personal finance and career tips in less than 60 seconds! t.co/pMdPNe4Quf
2nd link not working. 1-19 rows and column are missing
Do the banks allow to increase the emi?
Pay off loan early link is not working
2nd link is not workinr
Sir do home loans with zero interest through sip with your Excel sheet
Thank is a small word for the financial knowledge you providing us for free. Huge respect Ankur! ❣️
Apart from making these decisions and calculations easier, I also love how he keeps his bloopers in the videos. Feels more real 😃
Thank you for your comment.👆Contact the Whatsapp Line above for more info and advice, I've something new to introduce you to.
But the problem is most of the banks make it really diifficult for the customers to make a simple extra EMI payment .They will ask you to visit the branch instead of providing a simple online payment facility on their website.
Great video Ankur! Paying an extra EMI per year is a bit overrated, but increasing your EMI by 10% makes such a huge difference. You must also consider that rate of interest decreases once the outstanding principal falls below 30 Lacs.
I took my first loan when I was 33 yrs old. Now I'm 46. I have got 2 flats, 2bhk given on rent and live in 3 bhk. I am fed up of loan.
I just want to feel how life is without a loan.
No matter what the investment returns are I still want this heavy load out of my mind and life forever.
Reach me with the What'sap Line above for more information , guidance and available investment. Thanks for the feedback ..
Hey Ankur, the most crucial aspect is missing here is if I have started loan of 50 lakh and interest rate is changed after 24 months then this calculation goes for toss. Example, if I used this excel sheet now to decide whether to loan repay or invest and outcome comes as invest, then in future when I see that my interest rate has increase to 9% from 7.5% which is current situation then repaying loan would be good option. so maybe you can consider interest changes in next video. I believe such idea would help people to understand the risks and advantages well.
Hi, I think you have made a mistake in the first part of the video where you were discussing whether to pay off loan or invest at 12% when you got a lump sum amount of Rs 3.00 lakh. I feel "Opportunity Cost" is the concept involved here. Opportunity cost is the loss of other alternatives when one alternative is chosen. We can simply understood it by a simple example.
Suppose person A lend Rs 3 lakh to person B at 8% interest rate (compounded annually). Now B lend the same money to person C at 12% interest rate (compounded annually). After 10 years C returns the entire amount (principal + interest) to B. Now, on the same day B returns the entire amount (principal + interest) to A. Since B got an interest rate of 12% but he have to pay at just 8% interest rate to A, then, definitely B earned something in the process (around 2.5 lakh). This example and the problem you have discussed are one and same. So we should invest Rs 3.00 lakh at 12%. This is true at all stages of your loan repayment. As I said above, "Opportunity Cost" is the concept behind this.
Was thinking the same if you can get better return than the interest rate you can always invest. Wait till the amount reaches the remaining principal amount and repay the loan. This way you can close your loan earlier and save on interest.
Where's the inflation??
Yes you are correct. Even I started calculating how’s that calculation happened. Mathematically you should always invest when you are able generate more return than the interest you are paying. Otherwise according to Ankur’s mistake banks will not be to make profit😂.
Ram what you wrote here is pretty clear and correct
Ram you're 100% correct. Entire calculation of Warikoo is false
Yes it's very informative.
Before paying 1 additional EMI or increasing 10℅ of your EMI every year. Visit the financial institutions to make sure your additional EMI adjusted towards your Principal Amount.
Do a normal NEFT to your hoam loan account, it gets deposited to your principle. Don't really have to check anywhere. I would suggest to do a SI of 10% ammount instead of increasing. You can stop this SI when the interest component becomes low.
@@swapnilsas614 SI means ?
@@JarnailSingh-ut5bw Simple Interest or may be Systematic Investment.
@@JarnailSingh-ut5bw standing instructions . An automated way to transfer money periodically
Regarding the 1st point,
You forgot that we are only paying 3 lac, and still have to pay interest on the remaining amount.
Thus the final interest saved will not be 7.64 lac, it will be only approx 2.84 lac.
Let's talk on WhatsApp ❤️
Good Video. You are guiding us by saying if we increase 1 EMI per yr or some EMI % per year it will help in reducing the tenure and interests, But the important thing is how to approach bank for that process. If you guide us on that process that will be helpful. Please think of it, we need a video on that.
This is one of the best video regarding this. I have very clear idea about both the aspects. Thank you Ankur Sir!
Hi Ankur, this is awesome way to look towards the calculation. No One would realize the IMPACT of paying just 1 extra EMI Every Year. Thanks a ton for such a lovely Video, I have forwarded to many of my friends who have taken loans. Just had 1 query/doubt about the calculation about the extra EMI Per Month in the Pay Off Loan Early sheet. Found one bug in the calculation. Wont be possible to explain it in the chat here, will be great help if we could connect. I may be wrong, but as lot of people Follow you so just felt we should make double sure what is reaching to them is correct.
Thanks for shareing precious information, in the past i applied same terminology and cleared my 15 year loan in just 7 years by just paying a extra in every 3-4 MONTH, This act really motivates you.
Very informative video on Financial Management. Most of us take loan and forget about it due to life priorities.
It was one of your best video ankur...really thanks for your time...its a life changing video...I know some smart minds are already doing this practice but for major chunk of population it will blow their mind
Thank you Sir, this is one of the best videos I have ever seen about financial planning
I can see a lot of repetition. Bring new ideas
Kya chahiye aapko
@@adivlogs141 Had I known, I would have just googled it. Good financial influencers teach us what we don't know
Yes
It may be old for some but is new for many. Feel free to skip if it’s repetitive for anyone.
@@jaskirank4137 i think he was just giving his honest review as his duty of being a subscriber
Very much Informative and Useful....!!! Thank you so much Ankur...
Sir online transaction me fraud, money fraud par bhi ek video banaye. Kese fraud krne vale, ek Puri real situation create kr k, paise nikalvalete hai logo se.
It will help a lot of people.
It looks like repeating video. Can you share your thoughts on floating interest rate when repo rate increases
सिंपल सा सवाल का जवाब देदो- 13 वे महीने मे 3 लाख लोन चुका दिया 20 लाख के लोन मे तो बाकी 17 लाख पर तो interest दे ना ही पड़ेगा ना और mutual fund से तो 12 परसेंट का return से 6 लाख तो आरहे है ना, फिर pay of the loan कहा की समझदारी हुई, Mr गणितज्ञ
DHANYAWAAD SIR !!!
Repost?
Sir the issue with all this is, banks have their own rules for prepayments of loan. They charge extra for prepayment. Also won't allow prepayments for too many times in a year. Won't let increase the amount of emi. There r 100s of such rules
Awesome Content. in every video you give us Something New To Learn
Really appreciating 👏👏👏👏👏
Some issue is there in the excel sheet of "Pay off loan early". I think it's been erased. no formula or content is there. please rectify.
Great calculations and the use of excel.. but one thing which is not factored in your calculations is the rapid changes in the ROI done by the banks coz of changes in repo rates
Excellent video sir...saari confusion heee dur kardi hai...problem solver...
we are in exactly same situation. 50L for 25 years. i was in very similar idea but this excel helped me a lot to understand better.
homeloan pricipal and interest comes under 80c or other section??
Thank you sir…. These cases similar with me…. amazing video sir 🎉🎉🎉🎉🎉
A truly amazing video ankur ji, I’ve found the excels of utmost importance and will use it religiously ! Please keep making your financial videos , truly they are like non other
I want to reduce amount of loan EMI by paying lumpsum amount, rathan than reducing time period
Please make a video on this
Hi Ankurji,
I like your videos very much as they're
conceptually very sound and clear.
Some below are my observations regarding this video wrt information you provided.
1.Principle portion from regular EMI of home loan seems to be sufficient for tax benifit u/s 80C as this section also covers Employee PF contribution by default.
Gradually, principle portion of EMI +PF contribution overcome 1.5 lac (80C limit).
So I think additional repayment shall not be having benifit to that extent in view of tax exemption for 80C.
2. Interest portion of upto 2 lac is exempted from tax that also would be reducing in nature so eventually total tax benifit would be decreased accordingly.
Other one is opportunity cost of investment that could have been made if it was not diverted to loan and the difference of that of two options may be effective benifit if we pay home loan in early stage.
What a genuine and Brilliant Man You Are.. Really Love You Ankur Sir 😍❣️💐🤗
Reach me with the What'sap Line above for more information , guidance and available investment. Thanks for the feedback!!
Hi Ankur, very helpful information to help everyone to payoff their loan earlier and stay debt free.
I also believe if a person is paying their EMI and parallel to it they can have a long term sip for 10 to 15 years to create a large fund from where they can pay off the remaining loan amount before the loan tenure date.
What do you suggest?
I really appreciate your way of explanation for loan repayment...I am doing it but I have just 6 years left out of 18 years loan in which I have paid about 4-5 lac as advance payment , and in next month likely to get another 2 lacs and my balance due is Rs 11.67 lac should I pay advance or should I invest guide pls. ...
जिस तरह आपकी जुबान फिसलती है उसी तरह से मेरी भी जुबान फिसलती है, पर जिस तरह से आप उसे सही करते हो, वाकई बढ़िया है, very informative video
Wonderful Ankur. Appreciate your efforts❤
Ankur, thanks for the explanation and for sharing the sheets. I have a question regarding the calculation you have in Pay Off vs Interest. Cell B10 doesn't take into account the lumpsum amount invested (B5) while calculating the interest. There by the decision cell (B14) is incorrectly comparing the gain from investment with the entire interest amount irrespective of the lumpsum amount you have deposited towards the loan principal. Can you check this please ?
Excellent job Ankur ji,, thank you so much for this video
Thanks a lot to Pranab and you, to provide an eye opener information
Can we do the same with education loan? Will we save tax in that as well?
Excel1: Did anyone notice that he is comparing only the returns earned over the invested amount with interest? Why? Isn't that a blunder?
For people who have a home loan with rates still below 9%: There is always an intangible benefit associated when you have cash in hand with you. It can always serve you in the time of need. But if you pay off the loan, and any emergency comes up, you are not going to get another loan at the same rate. The best you would get is a personal loan somewhere around 10 lakh-ish (considering a good middle class salary) at a much higher rate (say 14%). Having a 20L corpus that you can liquidate within 2-3 days is far better than paying off a 25L debt that doesn't hurt much otherwise.
Think long term, build a corpus. Sit on it and relax. When you build enough sum of money, pay off the debt in one go. This video very conveniently ignores a lot of things.
As always, a wonderful financial life hack.. thanks yet again
Perfect video which I was looking for. Thanks
I usually love your 15 - 20 minutes
Because you cover everything which his highly needed....
Thankyou so much ankur sir for giving more efforts for making such informative and influential videos ❤️
Sir for gold loan, would you suggest the same method
Thanks a lot Sir.. this was exactly the video I was waiting for
THANKS FOR THIS VIDEOS 😊
That’s great sir.. very well explained. Appreciate your efforts to create this excel and explaining each point clearly..
God bless you and looking for more such videos
Dear sir,
Regarding, Investing vs Loan repayment... I think your analysis may not be entirely correct.
Simple Understanding is,
If someone is giving you money at 5% and you are lending it a further 5+%, you will be in profit.
I would love to take feedback but I think the problem with your method is, when you give your 3 lakhs to the bank it will reduce the interest component and your 3 lacs also is paid towards the principal.
However, in your excel, for the investment, you are considering only the gain part and not the principal of 3 lacs.
Also, in field "You will pay interest of:", why are you considering the whole interest... should it not be just 3 Lacs bonas's effective interest?
This is so awesome, Thank you so much for making such videos for ppl like us who find it difficult to understand the nitty-gritty of a financial world. I really appreciate your efforts and knowledge. One thing I would like to bring to your notice is that the link for Payoff Loan early is not working.
Just a suggestion to this thread. There is a way of doing a 0.1% of your home loan as a monthly SIP in Equities which would pay off the interest component of the home loan.
Thanks Ankur for such a informative video; I have never seen any video talking about loan repayment in such a detailed manner...
Thank you so much.Its a great eye opener , i have decided to prepay the loan.
In the income tax excel sheet another option with lumpsum/ bullet payment at one point could also be tried.
paying personal loans early is sensible but closing home loans is not...use it as leverage and beat the inflation to earn more
Thank you for sharing this simple but not doable sheet for us.
Repititions are helpful 🙂
Thank you very much sir, after watching your this video , I made it a mission to finish my 72 months/ 6 years of personal loan as soon as possible . I got success in completing the loan in 32 EMIs only . I am feeling relieved now .Thank u so much sir
Comparison should be done based on the amount I save if I put in 300000 at the end of 12th month with the profit I made in Mutual Fund. But in this excel the entire interest amount is compared with the mutual fund profits. Not a fair comparison. But yes mentally and emotionally it's always good to close loans quickly.
zabardast Sir jii.
i m in Pakistan and glad too u.
Incorrect comparison.
As per u, 3lcs bank ko de ke 8 lakh approx aap interest bachate hai, but aap invest karte hai to wo 6lacs profit hota hai so aap aapke pass 9 lacs total hai(as per ur calculation)
Still I will be in profit of 1 lacs (9L - 8L).
R upar se tax saving.
Thanks for the comments Drop your message on the WhatsApp number above for Guidelines and information on trading !!
EMI never remain same interest rates can be changed anytime. Idea is quite good but based on assumption which is not practically possible.
Thanks for the comments Drop your message on the WhatsApp number above for Guidelines and information on trading..
Great Information, Thank you. To Implement this with our bank, do we need to Inform bank regarding Increase the annual 5% on Interest every year??
Dear sir,
I think you missed the point in the very first part that … 8 lakhs( approx) is the total interest that you will be giving over next remaining 9 years and 6 lakh (approx) is the return that you will be getting in next 9 year over 3 lakhs investment. So a crude calculation will say that effectively you will pay 2 (8-6) lakhs of interest net where as if we would have paid off the 3 lakhs instead of investing then .. still we have to pay the interest on remaining loan which will be 6 lakhs (approx) which is much higher than 2 lakhs we were paying in net when investing. That is the gain we will have form higher return and power of compounding. I hope I’m making sense.. though not explained in a mathematical way.
Thank you so much for the information. Although i am not able to import those excel files into google sheets.. any idea?
Thanks for the sheets. Very informative and creative way to pay off. One query - What is Tax slab? Didn't understood that one.
@warikoo did not discuss the point "Amount you can invest every month?" in first excel. when should we use it?
Warikoo ji ..u r videos build confidence & courage to deal with financial matters
Excellent Warikoo. My doubt is cleared.
If we keep increasing the EMI by 10% then the 25th year EMI will be around 3,94,000/-
I am out!
I feel the sheet has calculation errors please do check the formula in column E. Please make the necessary changes. The sheet and video gives an incorrect payback schedule.
Thanks a lot for this vision now i will try to finish my loan in 5 years
Great video! You first calculator is wrong. When deciding between making a lump sum payment and invest it- the calculation should be between the interest component reduced for that amount only and not the interest due for entire principal (as in your sheet)
I recently started following you sir you're really boon for working class people.
Sir you are great ❤️
Warikoo sir, big fan! There is a mistake on your calculation. Example :- if I have a 10 lac loan and in the first year I have to pay an interest of 80000 at 8% PA. If I have a lump sum amount of 10 lac so instead of paying off the loan I will earn 15% return on investment generating 150000 every year.
Paying off loan is not beneficial if I can generate more return on my investment in some other asset class.
Very informative & useful.. Thanks A lot
What a wonderful knowledge to have....thank you so much!
wrong calculation, we are not paying 8 lakh interest on 3 lakh loan. we are paying on all remaining amount from 20 lakh. so if we pay 3 lakh now we will not save 8 lakh we will save something between 2-3 lakh max
Hey Ankur ! Thank you for all the knowledge. I wanted to know if this is applicable on personal loans as well ?
I have asked the same thing to bank. They clearly mentioned that if you want to pay your amount before the loan duration. In this case, You need to pay prepayment charges also.
Thanks for the comments Drop your message on the WhatsApp number above for Guidelines and information on trading..
You don't have to pay prepayment charges a) if the amount is less than Rs.5 lacs or b) if you're able to show that you're prepayng out of your own funds, showing your bank statements for 3 months.
It was very useful.Thankyou ☺️
Ca Rachana ranade also did the same thing you only copy or "repurpose"
just because fornula is same that dosnt mean its a copy
paying extra emi is the only way to save intrst in laon
thanks for video ... very good and helpful
This is very helpful for a newbie man thanks!
Which one is better: increasing just EMI or increase EMI amount every year?
Take a chance! All life is a chance. The man who goes farthest is generally the one, who is willing to do and dare.
I used the excel sheet... My tenure is very long. Almost 250 months. The investment amount is becoming more
Thank you Sir for this!!
I recently took a home loan and I am going to implement the suggestion you have provided in this video.
CA Rachna mam also uploaded a video on the same topic few days before
Usefull information👍 thank you for posting this
Warikoo please make a video on bank hacks , about tax please it will help .♥️♥️
Ankur Sir.. I took 20lakhs ka homeloan for 20 yrs. My EMI was Rs.16500/- pm. I close it in 5 years... My salary was Rs.50k. Every month I made FD of 20k. so in one year its around 2.40 lakhs. and also invested 50k per year in ICICI prulife... so for 5 years i invested 250000 and when i withdraw it I got 285000.. and before four closer loan i took personal loan of 2.50 lakhs for 3 years with 11% pa interest rate... so instead of giving 45 to 50 lakhs in 20years to bank I only pay for 5 years.. that will be max 4 to 5 lakhs interest to bank..
Hi, unable to understand the math here. 5 FDs of 2.4lac is just 12lacs and investment of 2.85lacs, so just 15 lacs in total. How you paid the remaining amount in just 5 years!!
Hi Ankur! It was really an eye-opener for me. Currently, I have my 5lakhs of Education loan. So my question is: Kya me 3 extra EMIs ka divided by 12 karke every month little extra de sakta hun?
Sir mera ek question hai agar hum 50lakhs ka loan lete hai and 10lakhs ko dipostie karte hai 12% ke return se toh kya hoga
First excel is not relevant...but I like your speech delivery
Wow, it's a great video. Thank you Sir.