@@chiranjibroy3165 never happened... Even if you enter at the absolute peak and exit at rock bottom u still would have a decent return over a 10 year period.
I have another view, Debt free life is always better. If it comes across your peace of mind never hesitate to repay loan. Life is not spreadsheet, Period !
@@financewithsharan but you are forgetting if the economy is down and one faces a job loss then stock market will also be down which in turn means he will neither have a job and also have debt
I stopped investing and started repaying home loan debt. Feeling happy, no more stock market related anxiety. Once I clear the loans I will start the cycle. Stock market if full of fraud not for common people who want peaceful life.
This channel is informative, please provide accurate information so that people can take decision. In this example 80L for 20 years with 8% interest, one can get effective 7.49% for 1st year ( Reason is 2L interest is exempted and user pays around 7L interest amount). To be effective of 6.2% , as you mentioned, user would have paid 14 or 15 years loan already in this example.
Repayment doesn't give peace of mind. The confidence that you can repay anytime gives you peace of mind. So use the fund elsewhere to grow it and in case needed use it to repay anytime
@@subhankardash5107 - Repaying debt can lead to a sense of financial freedom and independence. - Being debt-free can reduce stress and anxiety related to financial obligations. - It allows for better financial planning and the opportunity to save and invest for the future. - Experiencing life without the burden of debt can provide a deeper appreciation for financial stability. Punch line : "Living debt-free: where financial freedom meets peace of mind."
On 80 lacs loan @8% the annual interest is 6.40 lacs. Out of this only 2 lacs qualifies for rebate. Say 20% on 2 lacs is 40K. So effective post rebate interest = 6.40-0.40=6.00 lacs on 80 lacs I.e. 7.50%
You forgot about the fact.. where they keep increasing the interest rate every year by 0.5 percent.. In past 3-4 years, my home loan has gone from 8.5 to 11 percent. Also, factor the fact that it's your house.. Jn case something happens health wise and market crashes/job loss... At least your house will be safe.. You can cut your living expenses but can't bring down the emi.. All "savings" can go down the drain..
@@prudhvi5211 nothing, the video was about investing your money to MF or stocks where you can get 12% interest (exception) instead of pre paying your loan.
Home loan is a exception tho, he did say it was, because home loans are presented with less interest, and you can get tax deduction on the amount you use to pay the loan If it was personal or educational loan then which have interest rates as high as 12 to 16% then it's best to get rid of that loan as fast as possible
@@mayankkmar56241. Not paying total loan, most people pay part payment. So the tax benefits will continue. 2. With as low as equivalent to 2 emi in a year will reduce the years, means no need to pay interest for reduced years. Reduced years depends on the principle amount paying per month on total per month emi (excluding interest amount on monthly emi) 3. Home loan are also currently around upto 10%.
The art of compounding is where it does the maximum damage. My rule is to pre pay till your principal component goes above the interest component. Once it is done, I try to invest in other market based funds based on how much risk I can afford
@@sm996 banks levy 4% preclosure charges, do the calculations if it saves you good then only prepay else invest in Index funds which may give you around 8-10% returns in the long run
I wish to married to someone like him...so that we both save in a right way. He makes finance non boring and explains in layman terms with good situation..
Great work. Your creative way of expressing valuable information is also attracting 7 years kid - benefits - awareness about finance & with bonus of English learning 😅
Some youtube finance influencers says : don't borrow money for investing in stock market because it is highly unpredictable. He is saying stop paying home loan in a single shot and don't be debt free person. Put it in highly unpredictable place for just some return. Hogo Avanoun yavannna nambodu yavanna bidodu gottagvatu 😁😂 it is high time to learn English from this channel rather than finance 👍😎
It’s of now use if your tax benefit are already maxed out with other stuff like PF etc. for your 80c. you’d rather save more with paying prepay amount by showing that as principal payment. Under another clause not 80C.
Sir, I just finished my education and had a education loan of 2 lakhs, my salary is enough to pay the whole loan in 5-6 months, but even after watching your videos I couldn't get whether I should prepay my loan or not. Please help in my case, my loan amount is 2 lakh and my interest rate is 7.08% and i can pay 50k per month, I took loan on 10th march 2021
Your tax for home loan cap is Max 2 lakh, immaterial of whatever your loan value, at times it is way lesser than at HRA as rent.don't get you this kind of trap, pay part max. Part payment within 5 yrs and save interest and enjoy debt free life.
If you face a problem like medical issues of any family member and ur not able to pay the laon at that time you'll have to sell ur house thia has happened twice with my parents so I'm in my third house today(after living in 8 rented houses at different locations)
@financewithsharan there are more factors to consider, what if the taxable income is greater than 20L and we are not able to get tax benefit (by opting new tax regime).. Also if it's a newly availed loan then almost entire EMI is paid as interest so its advisable to pre pay loan. Your way of explaining is great, just please don't compromise on complete information/knowledge just to fit the content in shorts..
The tax benefit on int is just 2l per person. I have major doubt on 4.75% effective interest rate. Second 12% return in stock market is a long term avg with great fluctuations. Third, if int raise are high (which is the case today) its always good to prepay as equity (cet par) wont perform well in raising interest rate
My fundamental is different. I would rather prefer Debt free then once when the entire loan is zero then to earn extra through Mutual fund. This is how i repaid the entire money and now I am debt free
Pre paying loan is always better as it reduces the tenure and debit free than investing for higher interest rates in mutual funds because share market is always uncertainty also it doesn't benefit much if you are in higher tax bracket let's assume 30%. Assuming to save 60k under section 24 of income tax for 5yrs would be only 3lac ,where pre paying the loan would save more amount on intrest.
Prepayment is not the same as foreclosure. If you have the entire amount, it is best to close the loan and put the emi money in a good mutual fund. Here it is different, you have some money and you want to prepay the emis. So it is best if you put that in a mutual fund instead of prepayment.
How that can be generalized? If my loan is 80L, 8%, 20 Y, EMI would be about 67K. Interest component would be over 6L to start with. Under which section can I claim all 6L? So, only a portion of interest paid can give me tax benifit. Add the new tax regime to the equation. You will lose every bit of benifit that you are getting.
NRI Viewer from NYC. Can you please explain how the interest percentage has dropped to 6.2% and then to 4.75% .. is there any specific deduction while filing taxes?
Making bulk payments and decreseasing EMIs was of less tenure with bank. The question was what were of the benefits of decrease of less interest if anyone tenure was high.
How about stocks invested goes down along with the job loss? It means the person will be thrown out of the house. Never ever look for financial gains over house loan. It will simply put you in risk.
What about time value of money? In 2004, 1 cr bunglow is now 10 cr or more. Now 2bhk apartment cost 1cr. If I think that I can save and buy my dream house by investing for next 10-15 yrs then the cost of the property/vehicle would not be the same….I have to predict that in next 10-15 yrs what could be the market cost, evaluate and then invest. For such investment you need good amount of savings and less expenses.
isn't tax benefit overrated?? usable tax benefit is only in interest amount. principle amount is never claimed as 80c is already filled with Elss,epf,insuranc etc
I'm still puzzled as to why they provide incorrect information. I had already paid off my home loan long ago whenever I had cash on hand. We can never predict the future, so it's wise to prioritize closing the home loan first for peace of mind before embarking on investments
"Explain yourself" - Josh ostusanya
Lol yes
Lol
Yes
Mueahahahaha
That was smooth BTW
I came to say that only
Meuhahaha
I like the way he is confident about 12% return in stock market 😂😂
Its very east,, take nifty 50 for 5 years,,, u can check old returns in 5 yr period
@@dushyantsharma4410u cant buy index
if you're talking about long term safe stocks, it's really easy
Check what if market returns get 1 or 2% in long 20years😂😂😂😂😂
@@chiranjibroy3165 never happened... Even if you enter at the absolute peak and exit at rock bottom u still would have a decent return over a 10 year period.
I have another view, Debt free life is always better. If it comes across your peace of mind never hesitate to repay loan. Life is not spreadsheet, Period !
I agree with you
100% agree with this
If you face a crisis in the future like job loss then you will have a lot more money with you than if you had prepaid the loan.
I agree vmro
@@financewithsharan but you are forgetting if the economy is down and one faces a job loss then stock market will also be down which in turn means he will neither have a job and also have debt
I stopped investing and started repaying home loan debt. Feeling happy, no more stock market related anxiety. Once I clear the loans I will start the cycle. Stock market if full of fraud not for common people who want peaceful life.
Could you tell me what do you mean by "will start the cycle"?
Without knowledge people even think education is fraud😂
This is reason why SEBI is banning such finfluencers who keep on misguiding viewers
Can you please suggest where to get besthome loans.
This channel is informative, please provide accurate information so that people can take decision.
In this example 80L for 20 years with 8% interest, one can get effective 7.49% for 1st year ( Reason is 2L interest is exempted and user pays around 7L interest amount). To be effective of 6.2% , as you mentioned, user would have paid 14 or 15 years loan already in this example.
He is assuming 1.5 lakh in 80C as well
If repaying gives peace of mind, then please repay and be debt free in the life.
Repayment doesn't give peace of mind. The confidence that you can repay anytime gives you peace of mind. So use the fund elsewhere to grow it and in case needed use it to repay anytime
@@subhankardash5107
- Repaying debt can lead to a sense of financial freedom and independence.
- Being debt-free can reduce stress and anxiety related to financial obligations.
- It allows for better financial planning and the opportunity to save and invest for the future.
- Experiencing life without the burden of debt can provide a deeper appreciation for financial stability.
Punch line : "Living debt-free: where financial freedom meets peace of mind."
Nimmoun ನಿಮೌನ್ ಕನ್ನಡ 🤗love u bro 😘
Yennn guru yelliyava guru ivva
How to contact in WhatsApp it is not showing
❤
Your kannada accent is next level ❤️
But some people assuming he is Tamil
Nee bonda raa
@@walterkluwers1888 enka endi raa "nim awun" ante "ni yamma" Ani adi kannada ne raa erri puka
@@tharunreddy3278 I know it's kannada and you're Tharun Muddi(@$$) 😆 .Nellore Reddy ikkada !
@@walterkluwers1888 aythe naki endi !? Nuvvu erri pukave
Yavan owunu
I'm so happy by these two words-
me as a kandiga
yasss
@@its_saanvi_nayak it's kannadati
YES BRO BECAUSE I DIDN'T LISTEN ANY KADDNAD WORD IN RUclips ( atlest which RUclipsr I see
Me also
Me as Kannadiga feeling proud
'Nimmoun..' 😂👌🔥🔥 is an emotion of every guy in North Karnataka.. 😂😂😂 Yavano avanu 😂😂😂🙏🤙👌
Really ☺️ that'true 🤣🤣
Right brother
Absolutely brother 🤣🤣
Truly hro
What does yavano avanu mean
On 80 lacs loan @8% the annual interest is 6.40 lacs. Out of this only 2 lacs qualifies for rebate. Say 20% on 2 lacs is 40K. So effective post rebate interest = 6.40-0.40=6.00 lacs on 80 lacs I.e. 7.50%
bing bong , beep bop beeop ...
:p
🤣
This literally had me 🤣
😆😆😆
Dont fall such trap repay your loan as early as possible .
Correct 👍
100% correct
100% correct
True asf, just paid off my student loan, never felt better
@@benwilkins2781 hello.. is there any foreclosure penalty or something for the same?
You forgot about the fact.. where they keep increasing the interest rate every year by 0.5 percent.. In past 3-4 years, my home loan has gone from 8.5 to 11 percent.
Also, factor the fact that it's your house.. Jn case something happens health wise and market crashes/job loss... At least your house will be safe.. You can cut your living expenses but can't bring down the emi.. All "savings" can go down the drain..
The tax benefit is capped at 2L. You can still pay off some part of the loan until your interest is above that amount for the year.
yeah
Thanks for helping me sir I am learning so much by your channel about financing
Thanks 😊
What do you understand please explain clearly, why we don't have to pre -pay our loan amount, to decrease the interest rate.
@@prudhvi5211 nothing, the video was about investing your money to MF or stocks where you can get 12% interest (exception) instead of pre paying your loan.
Close the loan as early as possible. He looks to be favoring banks who earn big money from our interest
Home loan is a exception tho, he did say it was, because home loans are presented with less interest, and you can get tax deduction on the amount you use to pay the loan
If it was personal or educational loan then which have interest rates as high as 12 to 16% then it's best to get rid of that loan as fast as possible
@@mayankkmar56241. Not paying total loan, most people pay part payment. So the tax benefits will continue.
2. With as low as equivalent to 2 emi in a year will reduce the years, means no need to pay interest for reduced years. Reduced years depends on the principle amount paying per month on total per month emi (excluding interest amount on monthly emi)
3. Home loan are also currently around upto 10%.
The art of compounding is where it does the maximum damage. My rule is to pre pay till your principal component goes above the interest component. Once it is done, I try to invest in other market based funds based on how much risk I can afford
Well said. Makes complete sense
Sir is it better to prepay the personal loan or not pls say
@@sm996 banks levy 4% preclosure charges, do the calculations if it saves you good then only prepay else invest in Index funds which may give you around 8-10% returns in the long run
Hi Chirag, so you mean paying extra money in EMI is advisable until the point your Principal amount equals or higher than interest amount?
@@chiragasnani92 could you please explain
I am very new to all this
Added to that the risky equity investments unless well guided. Stay debt free and then invest in stocks. That way risk profile would be better.
That "Nimmoun" 🔥🔥🔥🔥🔥🔥😂😂😂😂😂
🤣
The above fake Sharan is worthy of Nimmoun here
@@dr.bharathsg5217 do u know the meaning man
@@techgaming4113 yeah of course
😛
Love From Tulunad, Mangalore 🇮🇳
LOVE FROM KARNATAKA❤💛
I wish to married to someone like him...so that we both save in a right way. He makes finance non boring and explains in layman terms with good situation..
Don’t you have brain of your own?
You can be the person rather than wanting someone like that right?
Great work. Your creative way of expressing valuable information is also attracting 7 years kid - benefits - awareness about finance & with bonus of English learning 😅
Some youtube finance influencers says : don't borrow money for investing in stock market because it is highly unpredictable. He is saying stop paying home loan in a single shot and don't be debt free person. Put it in highly unpredictable place for just some return. Hogo Avanoun yavannna nambodu yavanna bidodu gottagvatu 😁😂 it is high time to learn English from this channel rather than finance 👍😎
Mutual funds give you guarantee returns tbh, being debt free? You will end up having to pay lot of taxes then
Super creativity to educate ppl on finance from a kannadiga.. Psyche bro
Explaining a serious subject in a humourous way...why can't school teachers be like u Sharan
That "Nimmaun" moment 💥💥
@financew-sh2194😂😂 berojgar scammer
It’s of now use if your tax benefit are already maxed out with other stuff like PF etc. for your 80c. you’d rather save more with paying prepay amount by showing that as principal payment. Under another clause not 80C.
Subscribe to my newsletter - www.financewsharan.com/newsletter
Sir, I just finished my education and had a education loan of 2 lakhs, my salary is enough to pay the whole loan in 5-6 months, but even after watching your videos I couldn't get whether I should prepay my loan or not. Please help in my case, my loan amount is 2 lakh and my interest rate is 7.08% and i can pay 50k per month, I took loan on 10th march 2021
I have subscribed for your newsletter, can you send me the tool to help me calculate. Thanks
Your tax for home loan cap is Max 2 lakh, immaterial of whatever your loan value, at times it is way lesser than at HRA as rent.don't get you this kind of trap, pay part max. Part payment within 5 yrs and save interest and enjoy debt free life.
Explain Yourself : Reminds Josh Ostusanya
I wanna know what does he mean when he says "effective interest rate" and how it got down to 4.5 from 8. Someone please enlighten me on this
If you face a problem like medical issues of any family member and ur not able to pay the laon at that time you'll have to sell ur house thia has happened twice with my parents so I'm in my third house today(after living in 8 rented houses at different locations)
Reach me with 👆👆the what'sap line above for more information, guidance and consultation. Thanks for the feedback..
Love your kannada in between... keep it coming🎉
Investing in stock market and getting 12% is NOT that easy bro 🤑
12% is easy bro, getting 14-15% is hard
Just invest in index mf
It's pretty easy if you invest for longer time
NinNoun shatta Idea, (nammkade channagidre etara helteve)
Best way to pre pay loan is to increase EMI by 10% every year.
Sharu bhaiii...as u r clever in finances...u r a good actor tooo...thank u for updating us....👌👌👌👌👌👌👍👍👍👍👍👍👍
Did he say Nimmoun?
😂😂😂 It's a long time hadn't heard of that word since I left Dharwad.
@financewithsharan there are more factors to consider, what if the taxable income is greater than 20L and we are not able to get tax benefit (by opting new tax regime)..
Also if it's a newly availed loan then almost entire EMI is paid as interest so its advisable to pre pay loan.
Your way of explaining is great, just please don't compromise on complete information/knowledge just to fit the content in shorts..
I've subscribed you. The only reason is learn English fluently 😅.
The tax benefit on int is just 2l per person. I have major doubt on 4.75% effective interest rate.
Second 12% return in stock market is a long term avg with great fluctuations.
Third, if int raise are high (which is the case today) its always good to prepay as equity (cet par) wont perform well in raising interest rate
Very nice content sir
My fundamental is different. I would rather prefer Debt free then once when the entire loan is zero then to earn extra through Mutual fund.
This is how i repaid the entire money and now I am debt free
Love the kannada words u use now and then 🤪😝😝😝😝 keep going 😀
That bip boop, bip boop was just next level sharan 😎
In other video with CA Rachana you said it's good to repay,but now it's better to invest in Stocks
So confusing 😂😂😂😂😂
Some people take loan specially to lower their tax liability if you take loan for genuine reason than pay ASAP
Loads of love from Karnataka ❤
But if a person not under the taxable income but took home loan alone, then prepay is good or bad??????
Never pay homeloan prepaid....
@@dhanm914 if i do that then i have to pay almost same the amount of home loan as interest..
@@sudipdas2998 Don't listen to these stupid advices. Prepay your home loan and close the loan as early as possible.
@@karthikjayakumar2372 i know that.. prepay is always a best options..
They are giving such a important information to invester
Two ₹500 rupees bundle 5 lakh 🤦♂️
Bkl asli mei 5lakh dikhata?
Pre paying loan is always better as it reduces the tenure and debit free than investing for higher interest rates in mutual funds because share market is always uncertainty also it doesn't benefit much if you are in higher tax bracket let's assume 30%.
Assuming to save 60k under section 24 of income tax for 5yrs would be only 3lac ,where pre paying the loan would save more amount on intrest.
Are you from karnataka i feel so proud for you as youtube channel
Prepayment is not the same as foreclosure. If you have the entire amount, it is best to close the loan and put the emi money in a good mutual fund. Here it is different, you have some money and you want to prepay the emis. So it is best if you put that in a mutual fund instead of prepayment.
It's the Nimavn 😂😂
How that can be generalized?
If my loan is 80L, 8%, 20 Y, EMI would be about 67K. Interest component would be over 6L to start with. Under which section can I claim all 6L?
So, only a portion of interest paid can give me tax benifit.
Add the new tax regime to the equation. You will lose every bit of benifit that you are getting.
Bro I'm also kannadiga ❤️❤️❤️
Oh Mr sharan Hegede keep up the good work
ಯಾವೋನೋ ಅವ್ನು 🤣😂😂😂😂👌👌👌
He is right actually. You should only prepay if you want to get rid of the headache / stress
ಹಲೋ ಬ್ರದರ್ ಕನ್ನಡದವರೇ? ನೀವು. ನಮಗೆ ಗೊತ್ತಿರ್ಲಿಲ್ಲ. ಇವಾಗ sbuscrib ಹಾಕ್ತೀವಿ.
Anna kannada ❤❤
You are right . But I have a doubt, Paying tax is beneficial for government but paying interest is beneficial for banks. What's your openion on this
I m from KARNATAKA
When he said *"Explain yourself"*
I was like -JOSH OSTUSANYA!!!!
ನಿಮ್ಮ ಕನ್ನಡಧ ಪಧ ತುಂಬಾ ಖುಷಿ ಆಯ್ತು ಸರ್
NRI Viewer from NYC. Can you please explain how the interest percentage has dropped to 6.2% and then to 4.75% .. is there any specific deduction while filing taxes?
Reach me with the☝️☝️what'sap line above for more information, guidance and consultation. Thanks for the feedback🇮🇳
Throughout the video, I was staring at the bundles of 500/- notes😢
The bits of kannada in between is so cool. Informative and fun. Thanks!
Using Kannada🤩😍
Making bulk payments and decreseasing EMIs was of less tenure with bank. The question was what were of the benefits of decrease of less interest if anyone tenure was high.
ಯಾವನೊ ಅವನು😊 🖇️ ನಿಮ್ಮೌನ😍.....
How about stocks invested goes down along with the job loss? It means the person will be thrown out of the house.
Never ever look for financial gains over house loan. It will simply put you in risk.
Nim awun 💀
What is the meaning
@@jeeva1 you know if you know
Yavan ownu and nem Avan both are kannada words very happy because I am banglorian
Bro your Kannada😂🤩
Then isn’t it a better investment? Considering real estate of the house increases at 4~5% every year, and not paying rent and all also right.
nim....vn lol bro
non kannadigas be like: bro what
Guru ninna Kannada tumba chennagide
ಕನ್ನಡ 💛❤
Along with good financial knowledge he is a damn good actor
Nimmaun🤣🤣🤣
Maga the way u say nimavvan is superb
Nimmoun 🤣🤣🤣🤣
😂😂😂😂😂😂 I am a ZERO as far as financial stuff is concerned but your videos are HILLLLLLLLARIOUS, so I watch them. And…you r very cute!
I always like his punchline with natural smile😊
Finally bro started to follow sharan
What about time value of money?
In 2004, 1 cr bunglow is now 10 cr or more. Now 2bhk apartment cost 1cr. If I think that I can save and buy my dream house by investing for next 10-15 yrs then the cost of the property/vehicle would not be the same….I have to predict that in next 10-15 yrs what could be the market cost, evaluate and then invest. For such investment you need good amount of savings and less expenses.
Keeping money with you and paying emi with future money is a smart move you always have money for everything
Life is not easy and pay loan soon as possible. Be confident your are hero of someone
If you do this in tamil also. it will be very helpful for some who doesn't have knowledge about English
isn't tax benefit overrated??
usable tax benefit is only in interest amount.
principle amount is never claimed as 80c is already filled with Elss,epf,insuranc etc
Nimouna,nin tika ,yavonoivno this is so emotional .. And also you have amazing talking skills keep going
I'm still puzzled as to why they provide incorrect information. I had already paid off my home loan long ago whenever I had cash on hand. We can never predict the future, so it's wise to prioritize closing the home loan first for peace of mind before embarking on investments
Correct . A wise investor will advise to close the loan n then invest
Full respect for this brother
Repay as fast as possible... interest rates are getting revised now and then..the effective roi charged by my bank was close to 11%
ಏನ್ ಆಕ್ಟಿಂಗ್ ಗುರೂ ಸೂಪರ್.... ಒಳ್ಳೆಯ ಮಾಹಿತಿ.
I'm from Hassan ,, "nimmaoun"
Was good one
Sir Nan hindi dawan but nim kannada content naan tumbha yista padtini sir
Nimage content Dali nijawagle bharat ratna kodbeko sir 🙏