I think best option is to increase the tenure but prepay as much and as soon as possible. If you already have some amount for bulk payment or paying increased EMI, instead of choosing it, keep EMI same but prepay by paying using these funds. With this approach, in future your EMI amount is fixed which was lower and also, you have prepaid a big chunk so that net interest will not be impacted much.
I have taken Housing loan in 2020 at the time 7.45% interest rate for NRI Now at the year 2023 jan it is 9.7% Repo rate is increasing continuously very sad🤔😔
I disagree with you regarding making pre-payment at the later stage of the loan tenure. Since your principle amount would be comparatively less, the incremental interest generated would be less. thus it would be beneficial for you to probably invest that amount somewhere else at a slightly higher yields
@@brucewayne5916The point is that interest payable is less during later stages of your loan. The interest share of your EMI would be max. during initial stage of your EMI.
This should happen but if these were the terms while the loan was sanctioned then you can do prepayment every 3-6 months instead of increasing your EMI.
I don't get it. What's the harm in increasing the loan tenure?? You know the difference between rich business men and common people?? Rich people take loans. Lots of loans and run businesses that generate higher returns then loan interest. Home loan is still the cheapest loan available to common people. Every other loan is way too expensive. Whatever additional emi amount comes out to maintain the same tenure should be just moved to an equity MF SIP. Even if it gives same returns as benchmark, it will always be higher than loan interest rate. Except the psychological relief of getting done with emi payments, I don't see any other benefit of finishing up the home loan payments.
@@nkav868 because home loan interest is cheaper. It's simple maths yar. Home loan is charging me 8% interest. Mutual funds are giving me minimum 13 to 14% return over a long term. I would gladly keep paying 8% interest on loan and earn extra 4 to 5% from market.
just increase tenure. don't prepay. value of money will erode year by year. even if tenure increases by 8 years, the value of money in the last 8 years will be nothing by that time.
I think best option is to increase the tenure but prepay as much and as soon as possible. If you already have some amount for bulk payment or paying increased EMI, instead of choosing it, keep EMI same but prepay by paying using these funds. With this approach, in future your EMI amount is fixed which was lower and also, you have prepaid a big chunk so that net interest will not be impacted much.
I was also thinking the same .. prepay is better but the upfront mountain of early interest charged just makes it too tough to accept 😞
I have taken Housing loan in 2020 at the time 7.45% interest rate for NRI Now at the year 2023 jan it is 9.7%
Repo rate is increasing continuously very sad🤔😔
It won't increase now . Expect it to lower in 2024 quarter 1 onwards
@@divyanayanawasthi478really?
Thanks for giving valuable information, I have one query. If RBI decrease the repo rate then the bank is reducing the interest rate or not??
Products like overdraft loans eg, SBI Maxgain is also a viable option to reduce interest outgo.
Hi Samarth, what's the name of the society you showed in the video
?
i took loan from sbi on jun 2020 intreset rate was 7.2% . Today i.e dec 2022 intreset rate is showing as 9.45% .
..same here
Same here
Maybe you have chosen flexible interest rate
It's floating interest not fixed..
@@harshbardhanshah rbi stopped fixed home loan intrest rates
I disagree with you regarding making pre-payment at the later stage of the loan tenure. Since your principle amount would be comparatively less, the incremental interest generated would be less. thus it would be beneficial for you to probably invest that amount somewhere else at a slightly higher yields
😂 no one gives you guaranteed interest more than 9% , loans are at 9%
@@brucewayne5916The point is that interest payable is less during later stages of your loan. The interest share of your EMI would be max. during initial stage of your EMI.
Best advice never opt for loan
The ICICI Bank just told me they do not have option to increase EMI. Is this true? Then prepayment is the only option?
This should happen but if these were the terms while the loan was sanctioned then you can do prepayment every 3-6 months instead of increasing your EMI.
Finished watching
@WintWealthYT, What if Bank suggests to reduce homeloan rate from 8.65% to 8.45% at cost of 3000/-?
Thanks for your information!
Glad it was helpful!
Hi .. plz Suggest few A-Class builders, who charge comparatively low premium charges.
Hey,
We wouldn't have that information, you have to reach out to these A class builders to get this information.
I don't get it. What's the harm in increasing the loan tenure?? You know the difference between rich business men and common people?? Rich people take loans. Lots of loans and run businesses that generate higher returns then loan interest. Home loan is still the cheapest loan available to common people. Every other loan is way too expensive. Whatever additional emi amount comes out to maintain the same tenure should be just moved to an equity MF SIP. Even if it gives same returns as benchmark, it will always be higher than loan interest rate.
Except the psychological relief of getting done with emi payments, I don't see any other benefit of finishing up the home loan payments.
C'mon man....why would anyone payback the bank an interest amount which is whopping 3x or 4x times the principle amount taken
@@nkav868 because home loan interest is cheaper. It's simple maths yar. Home loan is charging me 8% interest. Mutual funds are giving me minimum 13 to 14% return over a long term. I would gladly keep paying 8% interest on loan and earn extra 4 to 5% from market.
just increase tenure. don't prepay. value of money will erode year by year. even if tenure increases by 8 years, the value of money in the last 8 years will be nothing by that time.
Nice
Sir @03:20 new interest rate is 8.95
yes Vikrant, you are right, it should be opposite i.e 8.4% for new bank.
My home loan interest rate is 9.05%
Sbi
Rent mein aram se rahunga😂
🙄
Real estate is the biggest scam in the world