Buy my new book 'MAKE EPIC MONEY' here: amzn.to/3HEShCR My Money Apps: bit.ly/3Zg56eR My bestselling books: ‘GET EPIC SHIT DONE’: ankurwarikoo.com/getepicshitdone ‘Do Epic Shit’: ankurwarikoo.com/doepicshit My gear for shooting this video: 🎥 Sony a7III camera: bit.ly/3M42wAV 🎬 Sony FE 24-70 f2.8 Lens: bit.ly/3KCCiF0 🎙 Shure SM7B Microphone: bit.ly/3O1NAVA 🔆 Fill Light 60W: bit.ly/37aJolP 💡 Key Light 150W: bit.ly/3O9nyjs 📽 Benro IT15 Tripod for Sony a7III camera: bit.ly/3O4PvJ1 Useful links: 20 books for your 20s: bit.ly/WarikooBooks 20 online courses for your 20s: bit.ly/WarikooOnlineCourses Gadgets that I use: bit.ly/WarikooGadgets The above links are on Amazon. If you buy any of these using the above links, I stand to make affiliate income from it. 100% of this income is contributed towards the education of kids who cannot afford it. In 2021 we contributed 38L and in 2022 we contributed 53L.
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.
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.
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!
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..
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.
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 :-).
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
This prepayment is possible only on Home Loan in case of Car or Bike Loan there is a restriction of max 2 times prepayment plus there is a 3-5% interest too
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.
U r the best sir…the way u speak…the way u explain …the way u show ur decency …each and everything is best about u…i wish i could have acquired only 1% of ur knowledge
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
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.
It is clear that when you reduce the EMI, you save less on interest compared to when you reduce the tenure. But one thing should be considered here is that if that reduced amount is being invested in mutual funds, then what happens? How much money it will make? Will it be more than the extra interest we would save in other option?
Yes, I did my own calculation i found to reduce EMI amount is better, two reasons, 1 we have extra amount in hand to spend. 2. Now less need to pay to bank per month
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.
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...
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
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.
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
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😊.)
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.....
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!
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
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. ❤
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.
Sir, I came around this video and it is very knowledgeable. Just a request, could you please make a video on paying the education loan quickly? It would be very helpful for alot of us.
Thank you for detailed analysis but one thing if anyone can enlighten me will be helpful we are not considering inflation rate 30 years value of 40 lakh will be less compared to 15 years i mean person taking 50 lakh loan, 65 lakh as intrest he is repaying with around lets say 30 lakh intrest and saved 35 lakh and completed loan in 15 years but in scenario 2 he is not reducing emi then he is paying loan in 30 years paying around 50 lakh now the delta is 15 lakh but in 10 years inflation also kicks in what are your thoughts?
Thank so much sir for providing the excel sheet it really helpful. I actually already made my own sheet but the pre-payment formula was not working properly and that is when landed on this video. I have been consuming your content on Insta regularly. Great work with all the content created by you
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.
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.
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.
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.
Can you also recommend the scenario where bank keeps the Same EMI but bank changes interest rate due to change in factors like Repo rate. Resulting in still increased emi months
This prepayment is possible only on Home Loan in case of Car or Bike Loan there is a restriction of max 2 times prepayment plus there is a 3-5% interest too
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
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.
This is such a great video and a eye-opener to save our hard-earned money from loans. Thank you tremendously for making this video and sharing the spreadsheet. :)
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...😊
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.
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
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.
We can not reduce term as when we take a loan we sign an agreement. Where total term mentioned by bank. And when after partial repayment we want to calculate term bank denied as the loan will be restructure.
Hi warikoo Ji, I never miss any of your video. Very Good Analysis.... Thank you for the analysis.... File can't be downloaded, can you please share with some other way ?
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?
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
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.
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.
Buy my new book 'MAKE EPIC MONEY' here: amzn.to/3HEShCR
My Money Apps: bit.ly/3Zg56eR
My bestselling books:
‘GET EPIC SHIT DONE’: ankurwarikoo.com/getepicshitdone
‘Do Epic Shit’: ankurwarikoo.com/doepicshit
My gear for shooting this video:
🎥 Sony a7III camera: bit.ly/3M42wAV
🎬 Sony FE 24-70 f2.8 Lens: bit.ly/3KCCiF0
🎙 Shure SM7B Microphone: bit.ly/3O1NAVA
🔆 Fill Light 60W: bit.ly/37aJolP
💡 Key Light 150W: bit.ly/3O9nyjs
📽 Benro IT15 Tripod for Sony a7III camera: bit.ly/3O4PvJ1
Useful links:
20 books for your 20s: bit.ly/WarikooBooks
20 online courses for your 20s: bit.ly/WarikooOnlineCourses
Gadgets that I use: bit.ly/WarikooGadgets
The above links are on Amazon.
If you buy any of these using the above links, I stand to make affiliate income from it. 100% of this income is contributed towards the education of kids who cannot afford it. In 2021 we contributed 38L and in 2022 we contributed 53L.
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 🤏
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 RUclips 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..
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....
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
This prepayment is possible only on Home Loan in case of Car or Bike Loan there is a restriction of max 2 times prepayment plus there is a 3-5% interest too
There should be some reason for other options, re calculate like this. Reduce EMI amount and extra amount u can invest and MF or stocks
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.
Thank you so much. I had been trying to understand this myself, this video will help me clear my home loan
Same here....thank you Mr. Warikoo❤
U r the best sir…the way u speak…the way u explain …the way u show ur decency …each and everything is best about u…i wish i could have acquired only 1% of ur knowledge
you know what, at first i was thinking u are here only for selling things, but today i thought no i was wrong. Thank you for all this information.
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
So effortlessly and swiftly you have communicated such things deeply.. Truly appreciated and inspired.!!!!!
I adopted this for my Second Home loan and it worked fabulous. Thanks Warikoo 👍🏻
love you sir for providing free financial knowledge which is necessary to each and everyone especially 20's
Lagta hai sir ne mera comment maan liya thank you sir.....
Thanks my home loan emi is starting frm next month and this will help me alot... Thank you
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.
I was under this dark cloud and can see some light now. Thank you sir
It is clear that when you reduce the EMI, you save less on interest compared to when you reduce the tenure. But one thing should be considered here is that if that reduced amount is being invested in mutual funds, then what happens? How much money it will make? Will it be more than the extra interest we would save in other option?
Yes, I did my own calculation i found to reduce EMI amount is better, two reasons, 1 we have extra amount in hand to spend. 2. Now less need to pay to bank per month
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
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
Ye hui na baat . Awesome calculation sir. Maza aa gaya.
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
This is the kind of content that NEED to go viral.
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 😄
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.
Sir really u changed my life my loan interest reduced thanks
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
Today i collect some new knowledge....❤❤❤❤
Thank you sir❤❤
I have started my home loan recently and got a helpful video to save money in future🙌
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😊.)
Again thanks for English captions. .. it will be helpful if all Hindi content creators add this English captions 🙏
Prepayment karke loan ka tenure kam karna sahi hai ya EMI kam karna??
Kripya Ye bataiye saral shabdo me.
Thank you i have already started my journey to save lacks
I literally got something new to learn...and it's valuable...thank you sir
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.....
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!
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.
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
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
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. ❤
Thank you sir for giving valuable information. I will try to do same practice.
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
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.
Sir, I came around this video and it is very knowledgeable. Just a request, could you please make a video on paying the education loan quickly? It would be very helpful for alot of us.
Thank you for detailed analysis but one thing if anyone can enlighten me will be helpful we are not considering inflation rate 30 years value of 40 lakh will be less compared to 15 years i mean person taking 50 lakh loan, 65 lakh as intrest he is repaying with around lets say 30 lakh intrest and saved 35 lakh and completed loan in 15 years but in scenario 2 he is not reducing emi then he is paying loan in 30 years paying around 50 lakh now the delta is 15 lakh but in 10 years inflation also kicks in what are your thoughts?
Kindly provide the active link for excel sheet
Thank so much sir for providing the excel sheet it really helpful. I actually already made my own sheet but the pre-payment formula was not working properly and that is when landed on this video. I have been consuming your content on Insta regularly. Great work with all the content created by you
Loved the information yiu shared.. will definitely go for last option. Thanks again. Very informative .
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.
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.
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.
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.
Excellent sir. Really surprising. U r saving our hard earned money. Thnx v much
Its an eye opener.... thanks a lot for the enlightening one.....tnx again....
Can you also recommend the scenario where bank keeps the Same EMI but bank changes interest rate due to change in factors like Repo rate. Resulting in still increased emi months
What a video ❤ ! Just loved thnks a lot sir
Bank aise hi aam janta ko fanshate h 😢
This prepayment is possible only on Home Loan in case of Car or Bike Loan there is a restriction of max 2 times prepayment plus there is a 3-5% interest too
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
Thank you Ankur Sir. I recently took a home-loan and this really helps me :)
Thank you so much for making this vid with such ease of explanation. Excel sheet helped too 😃😃
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.
This is such a great video and a eye-opener to save our hard-earned money from loans. Thank you tremendously for making this video and sharing the spreadsheet. :)
Thanks Man😊, It Helped Me A Lot
The cell of interest rate is not taking any float value. It is automatically rounding off to nearest integer!
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...😊
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 ?
Iske maze hi maze …
Wow brother
You rock
Thanks for uploading this video. It was very easy to understand with examples in excel.👍
It’s very very useful and super easy to handle. I was searching this kind of excel in internet and I was only getting calculator. Thank you @warikoo
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.
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
Sir aap har bar calculations to bta dete ho but 1 video iske process ki bhi bnao jo sbke liye bank process smjhne m or aasani kre
Really great helpful video. It's mind-blowing
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.
We can not reduce term as when we take a loan we sign an agreement. Where total term mentioned by bank. And when after partial repayment we want to calculate term bank denied as the loan will be restructure.
Hi warikoo Ji,
I never miss any of your video.
Very Good Analysis.... Thank you for the analysis.... File can't be downloaded, can you please share with some other way ?
Best video for home loan repayment.❤
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.
Much needed financial solutions ❤
Amazing informative video Ankur, thanks a lot for this video.
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?
Important Knowledge For Every Person Who Took Loan
Thanks a million sir. This is definitely gonna help me to achieve my goal.
Excellent sir my mind was block good information
The Excel sheet is view only... please upload the sheet which can be edited by us to know the changes in emi and tenure
@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 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
Awesome explanation... Thank you very much !!!
Could you please also share the additional sheet - for increasing EMI amount ?
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.
That's for sharing your thoughts and wonderful finance manging skills and experience.
Thanks for this amazing calc ....
Sir you are best. I am so happy. I go your way. Mostly i m so happy. 😮😮😮
Best video for understanding, how to make loan payments efficiently ❤❤😊
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.
I have been following you sir for couple of months. And thankyou for this information
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.
❤❤❤Love you, this video was really amazing. Thanks for sharing such an amazing trick