Save LAKHS while paying off LOANS! | Ankur Warikoo Hindi
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- čas přidán 9. 02. 2024
- This video comes with notes, check here: bit.ly/3I1gjs1
Download the Excel sheet here: bit.ly/3SHjxqu
When it comes to managing your loans, the question of whether to reduce your EMI or loan tenure can be a tricky one. In this video, I provide a comprehensive approach to understanding the impact of various pre-payment strategies on your overall interest payments and loan duration.
I'll walk you through the intricacies of managing your home loan, emphasizing the significance of early and substantial pre-payments. By the end of this video, you'll have a clearer understanding of how different approaches can help you save on interest and potentially pay off your loan faster.
Don't miss out on this valuable insight into effective loan management. Join me as we explore the options and strategies that can make a significant difference in your financial journey.
#loanmanagement #homeloan #warikoo
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The above links are on Amazon.
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appreciate you a lot
Link of excel ??
Excel link??
excel link is not working
Banks will hate you for this 😂
I remember I pre-closed my “first car” loan which I took from SBI. I prepaid by any amount (whatever was possible). I didn’t do any such calculations, my simple funda was: if I cannot grow my assets by 8.5%, I will not let my liability to grow in that same rate. 😊 Young professionals are lucky as they have these videos to understand finances.
Was it paid early bro ?
u can easily grow asset by 10%
Course cancel kaise kare bhaai 😢
Loss for older one as these kind of vedios were not there earlier.
Same pinch 🤏
To obtain financial freedom, one must either be a business owner, an investor or both, generating passive income particularly weekly or monthly basis. That’s the key to living financially stable.....
I want to compliment you, you have said it all. I am a little business owner and I really want to expand my business to the next level by making myself an investor but I really don't know how to go about it..
imagine investing in Btcoin earlier.... You could have been a multi millionaire precently
@@thylda7877 You are right. Been thinking of going into gold and cyptocurrency
Assets that can make you rich
*FX
*Btcoin
*Stocks
*Gold
*Real estate
You’re right but a lot of people remain poor due to ignorance
When I need to refer any point from your video, I can just browse and in just a second I can get what I need, don't have to wait on an ad when I'm actually in a rush. At times when ads pop-up while browsing important financial stuff, it is so annoying.
Thank you for not monetizing youtube. You are amazing.
That is why you purchase CZcams premium 😂
Nobody explains it better than Mr Warikoo. Thanks for the content. Have been learning a lot !
The key takeaways are:
a.) When "compounding" takes on with "compounding" it is only "break-even" that is left as a result.
b.) The additional EMI or increased EMI amount that we pay to the bank in the initial months is "valuable" money vs. "invaluable" or "devalued" money that we keep paying till the term ends (due to inflation).
So, it's a matter of choice what route you wish to go.
If you think you could have invested that extra (valuable) money that you've saved (by not paying to the bank in the initail months) & could have earned more "compounded" profit out of it (compared to what you would have paid to the bank), then yeah that's your call.
Otherwise, it is always a better idea to pay that money to the bank instead to close your loan early.
Nevertheless, excellent content as always! Thanks for dedicating time to record this and share with the audience!
Great explanation on confusion between pre closure of loan vs Investing that same money. 👍🏻
Can you also explain any preferred tactic on how to deal with Banks when the interest rates increase due to changes in repo rate. While I continue to add an additional monthly amount, my tenure keeps increasing increasing. My monthly EMI remains fixed.
@@anuragnigam Although, Im not very sure about it. This may vary bank to bank. But you can ask your bank to fix your interest rate by paying a fixed amount of money. Your interest then turns from floating to fixed. Additionally, the rates are expected to fall in the 3rd quarter this year, anyway. Due to various economic factors. No financial advice, though.
@@anuragnigamif your bank is private like indiabulls, shri ram finace plzz transfer that to any govt. bank . my father was also scammed by indiabulls bcoz they kept on incresing loan tenure every year.. but after transfering to pnb housing loan tenure is same from 2 years..
My formula is to keep pre paying and reduce tenure(not EMI) until principal part becomes same as the interest part in EMI. So far i have saved 9 lakhs interest payment with 2.5l prepayment.
Thanks to Warikoo in one of the previous videos, he shared one excel sheet to calcualte and decide whether to do lumpsum investment or to prepay loan
Thank you, Ankur Sir for detailed video. Although, this is an incomplete video. There are 2 more scenarios that are in the reduced EMI Option. 1) Additional Reinvestment of the reduced EMI amount in the Loan Principal Amount 2) Investment of reduced EMI Amount in equity market (Stocks / MF) at ~12% return.
Also, even if we ignore all of this the amount saved in EMI should also be added in the amount saved in addition to interest. I Agree that this might be less than the Reduce Term option but will provide better clarity to all your viewers. Let me know if I am missing any point in understanding this. Thanks.
That’s a great point. Missed this.
I believe, Ankur was focusing more on the EMI reduction so in that point of view - this is a great video. Ultimately, maximum people who are paying EMIs - don't have additional money to invest so better to re-pay once they have some additional amount which saves lakhs of interest :-).
Sir both points are valid but I still think point no 2 is good to go... Plz make video about it....
This was very helpful! I recently made a pre-payment for my car loan and now I got to verify the maths with this Excel Sheet.
One missing parameter was that, my bank imposed an additional charge on pre-payment which was about 3% of principal. Not sure if the scenario is same for Home Loans.
That'll happen if you foreclose the loan, not on prepayments I think.
Please how you open this excel sheet bcoz it's locked by sir ..so give me suggestions on how I open this sheet
Great video by the way. Best advise is don't buy a house on loan. Stay on rent, you'll save more than it is mentioned in this video. Better to spend on your lifestyle, health and personal growth.
Reasons you should not buy a house:
1. There's no guarantee of life and nobody can predict if you'd be alive for next 25 years.
2. If you think you'll buy house for your future generation then first think that are you staying in the same house where your father and grandfather used to live. Your next generation will be capable to pay their own bills.
3. You can use the same money to invest somewhere so that you can have a secured retirement.
4. There are many more reason to not to buy a house. This is a big middle class trap.
Many billionaires still live in a rented house. Nobody will tell you this hack.
billionaires live in rented house becz they loads of money, but not middle class. Owning a house for a middle class family means a lot; rather spending rents for 30 K you can just pay the same amount to own a house
Thank you so much. I had been trying to understand this myself, this video will help me clear my home loan
Ye hui na baat . Awesome calculation sir. Maza aa gaya.
Today i collect some new knowledge....❤❤❤❤
Thank you sir❤❤
Lagta hai sir ne mera comment maan liya thank you sir.....
One thing needs to be considered if the rate is variable then the bank keeps on increasing interest rates in 25 years according to inflation. For eg 8 % rate will increase to 9 %.In this case even if we are reducing emi bank is balancing it with an increased rate.
Yeah variable interest rate works differently
Sir i have lot respect for you because you are the only creater who actually sloves problem. My parents just planning to buy a house but as my parents are old and they don't know much about finance things so it always been a my responsibility to know which thing will work best for us through your video i gather really important information about finance and life I'm just 19 years old but because of you i understand one thing very early in life is if i wanna be someone who improve his life first i have to fix finance.( I don't know if you gonna read this but you mean a lot sir😊.)
So effortlessly and swiftly you have communicated such things deeply.. Truly appreciated and inspired.!!!!!
You don’t need excel sheet for this. Bank gives you Amortisation for this and all the payments contribution is explained in that. Amortisation is updated once a month, so every extra payment you make is updated and tenure is updated on Amortisation accordingly. Don’t need to waste time by creating excel sheet for this.
love you sir for providing free financial knowledge which is necessary to each and everyone especially 20's
Don't prepay, instead invest that extra money in a scheme providing higher interest rate than loan interest rate and see the magic of compounding 😁
I wish I could know such things 5Y ago when I took car loan.. I was able to repay much of it early but at its last leg.. Past is past, I will use this knowledge for quick repayment of my home loan that I'll be starting soon. Thanks Warikoo ji.
The concept of 10% increase in EMI is a very smart option but we have to understand bank has made certain EMI beyond which you cant increase EMI. So please consider that in your calculation aheet
Also there is one catch while doing partial payment.
I did partial payment of Rs.50000 , Rs.24 is interest of the day while I gone to bank on first day of the month. So executive told to make cheque of Rs50024 instead if Rs.50000 .So Total EMI reduced - 6 months.
Next month I again went to bank 1st day of the month and did partial payment of Rs.50000 so bank took the interest from Rs.50000 and added Rs.49976 to principal and so bcz of Rs.24 difference only 5 EMI reduced.
I was 100% sure that after finish watching this video , there won't be any such excel link in the description .And see that's exactly it is 😄
Warikoo ji.. you explained it so nicely, that even a common man can understand and execute. thank you so much for all your help. This helped me plan my finance better. God bless you.. and lots of love.
Sir 10% hike in emi every year just looks hypothetical. Yearly increment is somewhat in the range of 8-10%😂
Banks are also smart, after loan is disbursed if you try to make a prepayment before 1st emi the tenure does not get reduced only principal is reduced.
To do part payment, amount should be greater or equal to emi amount.
One of the most effective strategies for managing loan repayment is to prioritize prepayment when faced with surplus funds. The rationale behind this strategy is straightforward: if the return on investment (ROI) from alternate uses of the surplus funds is lower than the interest rate associated with the loan's EMIs, it is financially prudent to allocate those funds towards reducing the loan principal.
Ex.
Let say you have a loan at 8% Interest rate per annum.
If you have ₹1,00,000 surplus fund, try to generate more than 8% (₹8,000) income per year from them. If you can't do so, always pre-pay your loan first!
Not able to see the last sheet with 10% increase in EMI. Can you please attach it as well. This is really helpful.
Check out his old vedios of emi calculator … there you can find it
You have missed a very big part! If you invested the reduced EMI portion into 10%(assuming post tax) annual yielding instrument also, you would still make more money by reducing EMI than reducing tenure.
The cell of interest rate is not taking any float value. It is automatically rounding off to nearest integer!
It does not matter much.. I have played with these calculators multiple times over grow calculator.. Itni EMI bdhane ke liye paise hone b chaiye every month to pay the bank..
The strategy which I used is for first two years I did regressive pre payment but did not reduce tenure but reduced my EMI so that I can use my rest amount and reduce my emi monthly burden.. And after 2 years I did not reduce the emi but reduced tenure so that I pay less interest..
If you will try this on grow calculator then you will realize that no matter what you do total yearly interest varies by very small amount
I adopted this for my Second Home loan and it worked fabulous. Thanks Warikoo 👍🏻
Sir, in your calculations interest rate is fixed but now a days interest rate is flexible. In that scenario I think this will not act like you said.. what would be the possible way to repay the loan faster if loan is availed in flexi rate?? Please let me know.. Thank you.
It's very true. Loan prepayment definitely reduces the interest component. But is it smartest thing? Because if you are investimg in mutual funds and even if it gives you 12%YoY returns, your money is only growing. Yet it's not a bad idea to pay back some amount towards the principal every year. But what's the optimum approach for prepayment so that your overall money grows?
Quick Question: Where do I get to download the best scenario excel sheet? The one that described 25 yr loan to be paid in 10 yrs only.
So let me tell you dark side of these so called finfluencers, and why you should hire experts only
1) ideally no one is so stupid to take 25 years loan if he can pay in 10 years, so say he takes in 10 years laon emi would be 60k, 20k more than 38-39k of 25yr but interest will be just 22.7L
2) if he goes by Ankur route then increasing 10% emi every year and 1lkh around yearly 4-5 yr ur emi will be same as 10yr loan emi around 60k and after that every year its going to more then the 10yr intial loan emi only in 7-8yr ur actually paying more then double the emi, where as u could have just taken 60k for whole tenure
Understand simple compounding take laon 1-2yr plus only of ur intended duration as company are not fool and they take intrest first in intial years so that these gyani guru smartness is defeated 😂hence doing full duration is best in every context any queries happy to answer
So what should we do?
@@sunnysahu13 as mentioned in point one take loan for the duration you tend to complete and dont touch it after 2-3 yr has passed as u now paid almost max intrest already, invest the bonus if any in equity
@warikoo Sir, Looks like you missed you to add the EMI calculator sheet. I am not able to find that. Please add it. Thanks!
I'm also looking for the same.
I was under this dark cloud and can see some light now. Thank you sir
I got my home loan in 2010 for 20 years, I paid 1 lakh extra in second year i.e 2011 and 5 lakh in 8th year, I am left with only 6 emis now, My loan will be paid off until July, 2024.
Paying it off 5.5 years earlier.
This really works miracle.
I regret why i did not made prepayment in second to seventh year.
People reading this comment, do not do this mistake, please prepay every year...
So how much amount of Intrest you paid total
Thank you i have already started my journey to save lacks
Thanks you. It's a great video and very helpful tool. Loved your previous version of the tools (EMI Calculator, Payoff vs. invest). In the scenario of a home loan for under construction property, loan amount is distributed in tranches for the period of construction thereby changing the loan amount and the EMI for the first few years (2-3 yrs or so). I would love to see how can that calculation be included in the next iteration of this tool :) As always grateful to your contribution and teachings on personal finance.
There is another case where bank increase Rate of Interest due to this loan tenure increases. Like Home loan @ 8.55 is for 25 year and due to increse in rate of interest @9.50 loan tenure change to 30 year. Then how to do calculations.
I literally got something new to learn...and it's valuable...thank you sir
I saw this video on your channel year back as well. Looks like content is being repeated on your channel
Now this is exactly opposite to another fact that is also popular. By paying extra amount, person saves the interest rate of loan, which in this case is 8%. But what if same amount is invested in mutual funds? Even if it grows every year by 10%, person gains 2% than earlier case of prepayment.
Great work Ankur sir.
I am scratching my head on creating 10% increase EMI part excel sheet. Really want to put my numbers into it 😅
if you increase emissions by 10% each year, then your 10th year emi will 90,000. Can you afford that?
@@deepakaralumalligesubbaray3318 I assume loan will be completed before that ?
It'd be a more accurate depiction if you took the monthly amount saved from reduced EMIs and created an SIP of that in a mutual fund that can get you 12% Cagr, and see how much that gets you over 25 years.
If you invest that 38591 rupees in mutual fund with a return rate of 10%, then after 20 yrs you will have 24 lakhs in your hand. So you can earn 10 lakhs extra rupees by not prepaying the bank.
Thank you sir for giving valuable information. I will try to do same practice.
There is always 2 stories..if u keep that extra emi on mutual funds which grows at 15 per on avg..u will gain more amount than interest savings ..just try adding extra emi to mutual fund calculator and compare..😅
Sir really u changed my life my loan interest reduced thanks
Love the way you explained the calculations transparently and fairly. Also a big fan of channel cause of not being a sponsored channel with ads or asking for details to download sheets for use. BIG SALUTE FROM THE BOTTOM OF MY HEART SIRJI.
Thanks my home loan emi is starting frm next month and this will help me alot... Thank you
Sir business loan ke bareme video banao.. taking loan making profit and repay the loan … firz kijiye loan 1-5year ka hai.. to har month repay krna all the data with excel sheets
For the business man perspective
thanks
Hi Ankur - I have one doubt. which is better. paying 50,000 extra per month to close the home loan or investing the same amount for the same period. for example, if I have a 50 Lakhs home loan and I want to close it ASAP. my pocket allows me to pay 50000 extra per month. in that case, what will be the best option paying 50000 extra per month to reduce the principal or investing that same amount in somewhere like a mutual fund.
If possible please reply. Thanks a lot for all your informative videos.
Very good question
I think a basic financial part of being able to reinvest the saved EMI amount was missed.. if you assume 12% returns on the saved EMI then that option could be more desirable
I have started my home loan recently and got a helpful video to save money in future🙌
Important Knowledge For Every Person Who Took Loan
Sir mere ko ghar banana h, aur ghr banane me lagbhag 30 Lakh ka kharcha aa rha h. Aap suggest kijiye ki "Mere ko Loan lena chahiye ya jo meri save ki hui amount hai usko use karna chahiye?". Mujhe kis chij me fayda hai aur kaise?
Pls suggest me sir. Waiting for reply
The way you explain the things to people is simply amazing. Simplicity is also seen the way you have been handling your followers all these years. Even a non-related person to any subject will be able to understand the video's well. On top, you also share the ❤notes❤ is simply amazing, ❤sir.
Thank you so much for making this vid with such ease of explanation. Excel sheet helped too 😃😃
There's another aspect to it, if we put that extra 5 Lakhs and put it in Nifty and wait for those 25 years, i am sure we'll end up saving more.
I am looking for this type of video. And I got what I wanted to see. Thank you Sir. It is really cleared all my doubts. Now I can go for what I want to do. ❤
Very informative
Looking forward to to take a home loan from bank and i am gonna use this formula
This is the kind of content that NEED to go viral.
It does not help, people do not have money to pay their regular expenses in the first 3 years of loan. After that it does not matter in any way. And home loan is at 8 or 9% now but market returns are at min of 12% atleast.
Very nice Video sir. I wish our education system teaches us this stuff which is useful in real-life instead of all the useless stuff.
Sir please a video on comparison, when we reduce emi and put extra money on sip
Then what will happen and also compare with reduce time and extra money put in sip
Dear sir
i have HDFC home loan the bank doesnot allow to pre payment or any kind of partial payment as you said
only option is to pay in % of total amt in particular time which is not possible for large amt of principal~40lac.
Kindly suggest me should i transfer my loan account to sbi or pnb or any other bank so that i can plan as u expained.
5 yrs already passed
plz help
😊i have paid 5lacs for the loan of 25lacs and saved 5.5 lacs by teducing the tenure
You guys are amezing. You saved my lakhs of money. My soulmate who shared the video to me & Amezing you. My heart is thankful for both of you. ❤
Sir, a small confusion, instead of repaying.. why can’t we invest in mutual funds or some other investment which is actually giving more than loan % interest??
Here you will save 8 or 9% for sure, mutual funds carry risk with it, investing in mutual funds is not a bad idea but please do calculate how much you will save here and how much you will earn in mutual funds, compare the difference and see if the difference is worth the risk
Thank you sir... For explains this content in common and better way .... Now i am going to pay pre-payment for my loan.... It id really valuable information.....
Thanks a lot🙏 for the effective explation sirji, found it very simple to understand.... We got a clearity and confidence to repay our loans by saving our heard earned money and time . And the exel file was very much usefull... Thanks again
Please enable this sheet as we are not able to calculate my interest
Ankurji thank you for your simple way to explain intelligent and complex things especially about finance without losing focus and key things ....very grateful for your selfless service...😊
Very useful information Sir but in case of home loan, we have to pay min 2 emi as partial payment. So if emi is around 38k, we need to pay atleast 76k as partial payment.
Same video 1 saal pehle b daale the aap... content nhi mil rha kya aur
Insted of that add in sip/mf, shares, business, learning. This make extra income after retirement.
I am confused that why are we looking to save interest when loan is taken because we do not have so much money to repay the loan at once ... 🤷🏻♂️
Thanks for uploading this video. It was very easy to understand with examples in excel.👍
Sir , floating rate p kaise calculate
You told in your video that pay extra emi after every year, but can you plz tell me whic date and month it should be after a taken loan.
Hey sir, I really love your content especially when you demonstrate it through Excel for someone to walk through the impact. In reality, the interest rates keep on changing since loans are usually on a fixed lending rate for initial years. Can you please make a video where you share an excel trying to include floating interest rate after years, which I believe would really be really helpful.
Thank u sir for this detailed calculation.
But khuch banks only 3 time hi prepayment consider karte hai EMI reduce kerne k liye. Kya apka tarika hum hybrid mode me use ker sakte hai?
Agar haan to pahle 3 prepayment me EMI Kam kerna better rahega ya first tenure reduce kerke then EMI Kam kerwana zada benifit dega ?
Plz comment sir.
Sir spreadsheet ka permission change kijiye... Sirf view only mein hai
You made such an informative and helpful video right at time. When I am looking ways to pay off my loan as soon as possible. The biggest Q was reduce EMI vs reduce Tenure?, you solved it for me. Thanks sir.
WOW!! I liked this idea of every year 1 EMI extra and I was also thinking what will happen if we do 2X instead of 1X per year and you did it :-) nice coincidence
The Excel sheet is view only... please upload the sheet which can be edited by us to know the changes in emi and tenure
I would thank you for helping me in understanding and saving some money... I saw your same video earlier... Thanks again and my best wishes with you.
If you are reducing the EMI, although the calculations are correct but you need to consider the reduced EMI as the savings right ? I am not sure that is factored in what is being shown.
Thank U a lot Sir.
I will plan accordingly
What a simple yet GREAT content ! Specially that point when one pays extra EMI amount every next year.
Thanks Wariku sir. Sir, you are looking frail. Best of Luck.
I must say that you are creating excellent content. I really enjoy watching your videos. I have a request to make, could you please make videos related to education loans? Every year, many students want to take admission in a private college but due to a lack of information, they are unable to do so. Many people miss out on the guidance they need to make informed decisions. I hope you would consider making a video on this topic as it would greatly benefit a lot of students. Thank you
"Please provide an Excel sheet as well."
Its possible if our salary gets increase more min 15-20% every year Because say for example if we increase 10% every year and our salary increases by 5-10% only then then we don't get anything or to go by any other planning 😕
Thank you Ankur Sir. I recently took a home-loan and this really helps me :)
Hello Sir, your videos are excellent - the explanations are so clear and easy to understand. One small request though, it seems the second Excel sheet was not attached in the description. If you could please provide the link for that missing Excel file, I would really appreciate it. Thanks!
sir mene bhi bahot loan liya 30 ki age 80 lc ka le liya sabhi bank se 😂😂
ab aaram se aise hi payment kar deta hu 😅
Could you please help with CLP type of home loan, where in the builder/developer demands the amount in regular interval(based on construction progress), and the bank disburse that amount , thereby increasing the loan amount and the EMI. How do we manage and plan for that?
Your videos are very informative and helpful. The way you explain finances are very easy to understand for a person with minimal knowledge.
Thank you so much!