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
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.
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.
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.
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.
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.
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.
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😂.
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
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.
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
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.
@warikoo The excel sheets you shared in description are different from the one you are showing in the video. Could you please share the link to the excel you have shared in video in 11 minutes.
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?
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
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
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
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.
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.
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.
As per I think ,EMI amount is not reduced ,only loan tenure is reduced 8f repay early ,and also value of money reduces with inflation,so what is the use and we want liquidity in life in many instances,so for very long term loan ,it's better to repay lumpsum when you get a large sum.extraaa
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.
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.
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.
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
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)
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 ?
Adding to your calculation.. Every time interest rate are increasing .. You must cover that part.. because 0.5% also increase loan tenure to 3 years .. Please add this section to your excelsheet
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.
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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.
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.
sold my car since I already had one, paid off the home loan and will be paying extra emi every year to try to close the home loan in next 4-5 years (Home loan of 20 years)
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
Another example, instead of paying 1 extra emi and saving 13 lacks, if you put in that amount in MF expecting just 10%return you will end up with the savings of 35 lacks in 25 years.
Save entire 60 lacs by not taking any loan, instead convert that EMI to SIP and invest that money in your 20s so that in your 30s you can buy any house that too without any type of loan.
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.
Principal Exemption is a part of 80C, which is already filled with PF and other investments. so from HL we will get only 2 lac Interest Exemption as Principal exemption is already taken care by PF and other investments. Please suggest on this.
First part is absolutely misleading. 😔 if we give 300000 to the bank ,it would be reducing upto max 70k in interest, still there is 6.7 lakhs pending. Better to put in mutual fund and make a Lumpsum of 8.78 lakhs
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
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.
Excellent video sir...saari confusion heee dur kardi hai...problem solver...
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
Thank is a small word for the financial knowledge you providing us for free. Huge respect Ankur! ❣️
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
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.
Thank you Sir, this is one of the best videos I have ever seen about financial planning
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.
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.
Very much Informative and Useful....!!! Thank you so much Ankur...
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.
DHANYAWAAD SIR !!!
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 ❤️
Thanks a lot to Pranab and you, to provide an eye opener information
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
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..
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
This is one of the best video regarding this. I have very clear idea about both the aspects. Thank you Ankur Sir!
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.
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
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 !!
@warikoo
The excel sheets you shared in description are different from the one you are showing in the video. Could you please share the link to the excel you have shared in video in 11 minutes.
@warikoo please share
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.
Wonderful Ankur. Appreciate your efforts❤
As always, a wonderful financial life hack.. thanks yet again
Perfect video which I was looking for. Thanks
Excellent job Ankur ji,, thank you so much for this video
I used the excel sheet... My tenure is very long. Almost 250 months. The investment amount is becoming more
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?
Thanks Ankur for such a informative video; I have never seen any video talking about loan repayment in such a detailed manner...
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
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
paying personal loans early is sensible but closing home loans is not...use it as leverage and beat the inflation to earn more
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!!
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
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.
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.
Thanks a lot Sir.. this was exactly the video I was waiting for
37×2 =74k hota hai ankur bhai dhayan diya karo sb kuchh excel pe nahi karte guna bhaga v aana chahiye muhjabani.8:25
Awesome Content. in every video you give us Something New To Learn
Really appreciating 👏👏👏👏👏
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.
Thank you sir…. These cases similar with me…. amazing video sir 🎉🎉🎉🎉🎉
As per I think ,EMI amount is not reduced ,only loan tenure is reduced 8f repay early ,and also value of money reduces with inflation,so what is the use and we want liquidity in life in many instances,so for very long term loan ,it's better to repay lumpsum when you get a large sum.extraaa
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.
Is this the same video? The first one helped me alot
I recently started following you sir you're really boon for working class people.
Thank you for sharing this simple but not doable sheet for us.
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.
Thanks a lot for this vision now i will try to finish my loan in 5 years
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.
this is amazing and just in time, I am about to reach the 12th month of my home loan. Thank you so much!
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 Warikoo. My doubt is cleared.
THANKS FOR THIS VIDEOS 😊
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 want to reduce amount of loan EMI by paying lumpsum amount, rathan than reducing time period
Please make a video on this
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 ?
Adding to your calculation.. Every time interest rate are increasing .. You must cover that part.. because 0.5% also increase loan tenure to 3 years .. Please add this section to your excelsheet
Best video for middle class couples... Thanks Warikoo!
Repititions are helpful 🙂
2nd link of "Pay off loan early" not working. please updated with correct link.
Reach me with the What'sap Line above for more information , guidance and available investment. Thanks for the feedback!!
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.
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.
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If we keep increasing the EMI by 10% then the 25th year EMI will be around 3,94,000/-
I am out!
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.
Warikoo ji ..u r videos build confidence & courage to deal with financial matters
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.
I am unable to download the "Pay off loan early" excel sheet .. please advice
Really very gud suggestions
Sir you are great
Appka vedio dekh ke lagta he ki app logono ke liye video banata he , view app ke faide ke liye nehi
sold my car since I already had one, paid off the home loan and will be paying extra emi every year to try to close the home loan in next 4-5 years (Home loan of 20 years)
Thanks for the comments Drop your message on the WhatsApp number above for Guidelines and information on trading..
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
Sir in many cases the banks dont allow "Part Payment"..only Foreclosure is allowed..
this changes all equations.
I started investing after watching your videos sir
U r a very humble person
Another example, instead of paying 1 extra emi and saving 13 lacks, if you put in that amount in MF expecting just 10%return you will end up with the savings of 35 lacks in 25 years.
Repost?
What a wonderful knowledge to have....thank you so much!
This is very helpful for a newbie man thanks!
Paying off your loan too early is plain stupidity, get loan at 8-9%, which is someone else money. Use your money to generate 12-15% roi.
That was amazing explanation 👏.
Awesome Exel! Sir ji Thanks a lot!
Save entire 60 lacs by not taking any loan, instead convert that EMI to SIP and invest that money in your 20s so that in your 30s you can buy any house that too without any type of loan.
Thank you for your comment.👆Contact the Whatsapp Line above for more info and advice, I've something new to introduce you to.
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.
Usefull information👍 thank you for posting this
It looks like repeating video. Can you share your thoughts on floating interest rate when repo rate increases
Take a chance! All life is a chance. The man who goes farthest is generally the one, who is willing to do and dare.
Didn’t understand why the interest paid didn’t change when you changed the prepayment value from 3 lakh to 5 lakhs.
Sir main, 10 percent increase to nhi Kat sakta.. but I will definitely try to give some extra EMIs every year..
Thanks for the great advice 👍
Very informative & useful.. Thanks A lot
First excel is not relevant...but I like your speech delivery
Bhai Log jo jo loan liye ho dekhn lo , mai to parents k ghar rahta hu, mereko kya. Bus video dekhne me accha lagta hai.
Principal Exemption is a part of 80C, which is already filled with PF and other investments. so from HL we will get only 2 lac Interest Exemption as Principal exemption is already taken care by PF and other investments. Please suggest on this.
First part is absolutely misleading. 😔 if we give 300000 to the bank ,it would be reducing upto max 70k in interest, still there is 6.7 lakhs pending.
Better to put in mutual fund and make a Lumpsum of 8.78 lakhs
we never get bored watching your videos, you always bring something new and exciting. Now I predict what would be explained in next video.
Wow, it's a great video. Thank you Sir.