Sir What I'f someone has taken education loan and the bank is taking compound interest on that .....then how the situation changes with respect to principal amount and interest EMI...pls explain or can you pls make a single video on bank education loan taking compound interest how they take money and how much we end up paying pls make one video on this topic
Dear sir, in this description you have discounted one or two biggest factors.. First being Risk involved with carrying the debt. Second peace of mind when you don't have any debt to be paid.. I think that plays major role for overall well being.
Following you helps me a lot. And i love your video that is " I was lost at 24" because its very hard to break the expectation of your family that you have show them. Thanks warikoo
@🆆hatsapp➕①②①③④⓪①④⑤③⑧sir I'm having joining tomorrow I'm not interested to do job in IT sector .i want to do business but no idea WT business i should do . stressed lot sir 😥😥
Very good explanation. Thank you Ankur. However, I think one more aspect needs to be considered while doing this comparative evaluation, i.e. Tax on Capital Gains applicable. In most cases, people forget to consider this Tax component while checking out return, which makes the difference in actual money availability. That's my personal thought.
I had 17 Lakhs principal amount in Loan. I had 17 Lakhs lumpsom. So I cleared my home loan.. I don't believe in excel sheet. I don't have to pay EMI every month. I will now invest 25k in SIP.
What a consistency ankur sir Just finished 20habits video and made a notes of 8 page definitely that was the best video in 2022 I have seen I'm 17 and I'm grateful to know all this things this much early You're my mentor Ankur ♥️
Yeah people don't want to consider that possibility of job loss. Somehow they are ok with the fact that if they lose jobs in another COVID-like situation, everyone will lose it and not just them alone. And everyone will have their properties siezed and not just them alone. So people are ok being homeless if everyone around is being homeless. Second, even if some people consider the possibility of job loss, they just rule out the possibility of remaining jobless for years to come and eventually lose all their life savings along with their home. And trust me, there are people out there who lost their jobs 3-4 years ago and are still jobless.
This video actually helped me when I played with the excel and explained me if I should pay off my loan or, should invest. Actually now I just calculated that for my left over loan my rate of interest is only 6.9%. Thank you so much. Big Heart ♥
One other suggestion: Pay off the loan. Recalculate the EMI after payoff. Use the amount of EMI saved as above to invest in a Mutual Fund SIP and get triple benefits as below: 1. Reduce future interest portion payable on the loan. 2. Creation of additional savings without any extra burden. Because the total outflow per month for recalculated Loan EMI + MF SIP will be equal to old EMI amount. 3. By investing in SIP, you average out the market uncertainties that come with investing in lump sum. Because timing of the investment also plays a role in determining whether your lump sum investment will be profitable at the time you need it and not trying to wait for the market to bounce back. The only catch is that the lump sum amount that you received in the initial stages of the loan, you need to forget it right now. But it will come back later with a decent return on investment.
This is probably the better advice and best of both worlds. One thing to note though, Banks will not recalculate or reduce your EMI but instead recalculate and decrease your loan tenure. So if your goal is to save the difference in EMI and invest it, you need to contact your bank to have them reduce the EMI instead of loan tenure.
Bang on - and best advice according to me too.. The amount you save as EMI can be invested into MF's and let the money grow along with the peace of mind you have from a debt free situation..
Ankur sir, Thanks a lot for educating us. I am in my 20's and working in MNC. Your video always inspirs me. In many videos you said " ki Maine paise ko lekar bahut galat bhi decision liye hey " always inspirs me in a different way. Thanks a lot.
According to this video, then, many people with home loan should take a top up loan, which they get at mostly same rate & invest in mutual funds. Hence, More Factors to consider are 1. Ideally one should not invest when there is loan as loan brings mental burden for most of the people, unless A. you are government employee & have job security or B. you are good at maths & understand that this mental burden is only virtual, it is just in mind & actually doesn't exists or C. you are brave enough to live life with loans or doesn't care about loans. 2. Is it the home loan on your very 1st home & you were so poor that even your parents couldn't build their own home in their life. According to financial experts, in this scenario you should pay of the loan & reduce mental burden. But according to maths, if you are in 20-30% tax bracket & enjoying the tax benefit due to home loan, then you can invest the money in safest mode of invest i. e. In SBI FDs, preferably in joint account with your "NON-EARNING" mother or father, make 200-1000 ₹/month profit by doing this (estimated by difference in FD Interest rate (0.5% extra for senior citizens in case of joint account) minus effective interest rate which comes after enjoying tax benefit) & also builds corpus to survive a crisis of sudden job loss. It is only applicable for loans less than around 22-24 lakhs & interest rates of 7-7.5%. (These exact figures shall be estimated by calculation taking into account the exact tax benefit). 3. If you decide to invest, instead, for how long you plan to invest & how much is expected returns in that period? (probably this point Ankoor covered) 🙏
By referring your guidance I had cleared my personal loan taken while medical emergency of dads health from my EPF amount and saved intrest of 20000/- thanks for your video and improving our knowledge regarding money management
Although I like what you presented in this video however there are 2 major factors that were not considered 1) tax benifits on loan (like home loan etc) 2) tax implications on capital Gains I know that this video would have become complicated if these 2 points would have been considered but we can't simply make content look simple just for sake of it and by simply ignoring 2 major major practical factors that will completely change the equation, Would Love to read your thoughts! Regards, -A admirer of your work
@@sumankumary that’s only applicable on fixed rate loans, not on home loans. In that you can pay as much and whenever. I also know that the penalties are going away now on credit cards as companies wants both good and bad payers for profitable business.
I was waiting for you to mention about the tax benefits especially for home loan. I think it reduces home loan rate by about 2% if you are in highest tax paying bracket of 30%
I always feel that , Instead of paying loan off very early, invest in market But after covid situation- life has no guarantee and now feeling I need to pay off my loan now and I can invest in market later (wait for crash n enter)
Yes sir. I have Personal loan and got bonus. I invested 40% in market and 60% in hand to invest in sip. I didn't cleared my loan as only 24 months left in completion and I saw my emi is now mostly principal and less interest.
Brilliant We are the blessed generation to learn all this for free through a screen that fits in a pocket. Thank you so much Anukar. All your videos helped a lot to make financial decisions easy and wise 😊😃
The stock market have always and will always be a volatile market, that is why it is important to have proper research, analysis and strategy when investing
Great advice, i used to just watch youtube tutorials and videos,but still made losses when i traded on my own. luckily i came across and watched an interview on CNBC where the anchor kept mentioning "...Kathy Genelle Britton...". This prompted me to get in touch with her, her strategy and experience are what has made me so much profits these past months.
I’m not good doing it alone but getting into the market has been my best decision so far in my road to financial independence as it turned out lucrative for me.
Great stuff. I watch several youtube videos on how to trade in the stock market but haven't made any headstart because they are either talking some gibberish or sharing their story of how they made it and I do not want to make mistakes by taking risks in my own hands.
it's really nice to see someone else talk about Kathy Britton, she really has been my guardian angel in the market, helping me recover from the losses i made when i was still trading on my own,her strategies and experience has made my financial journey more fruitful.
Hi Ankur, this was very helpful. However, can you please do a detailed video on how to smartly repay a huge education loan ? How to do lump sum payments and when to not? It would be really helpful. Thanks!!
sir, this is exactly what I was trying to figure out from past 2 weeks with my excel If to repay loan faster or invest more aggressively...sure it did help to bring some clarity..thanks
Shouldn't your wordings be When Rate of loan interest is more that Rate of Return - rate at which your gains "are estimated AFTER paying tax"? By the way, concept is simple but not easy. It is to be noted that, Opposite of complex is simple & opposite of easy is difficult. Formula creating, solving it & estimating the answer is very difficult, given that there could be many factors like salary increment & Lump Sump amount of Performance Linked Incentive may come in June & one don't know how much it may come, revision in loan interest rate etc etc. 😊
Inshort, take loan at some intrest, Invest that money in different spaces whose return(obv after taxation) is more than loan taken+intrest, = paisa hi paisa?
@@Atzee yeah exactly, if you have some source which genarate more return % than your loan intrest then you will make money. That literally how bank makes money (Giving 4-5% return on FD and taking > 8% loan interest). Another example is corporate bonds or companies taking debt, it will only makes sense if they think their business will grow far more higher rate than interest.
@@PankajSingh-qc5mq how about taking a loan of about some lakh from bank, investing whole on stocks.. will it work??? As stocks return in approx 20 if everything goes right.. and intrest would be 8pa.. so there's a 12% extra money... I'm a student, and i think probably I'll do this in my future...
@@Atzee While your theory may sound reasoned, you need to add mathematical risk. Let me explain. Equity market may provide 15% returns after removing taxes, which may be higher than loan interest rate. However, banks expect the loan to he repaid consistently, while equity markets are inherently risky & fluctuating - so 1. No bank will give you loan to invest in risky investments like equity market. 2. Even if you take the loan, there is huge risk that you'll default as you won't be able to consistently create cash to repay the installments - as to earn good returns, one must keep the investment as it is for a long term in equity market.
Good stuff. I used the other ways to do the re-payment. I prepayed my home home loan (35 lacs for 12 yrs 7.2%) by withdrawing the LIC & old PPF so after a year I paid 10 lacs after 7 months. During pandemic due to work from home I was not spending (10K on petrol + 1.4K on toll pass + 1.4K on metro pass and 2.5K parking charges ~ 15-16 K per month). I paid all that as a pre-payment & was able to bring the capital amount by 2-3 lacs. Now my liability to loan is 10 lacs or less and reducing. I will be done with this loan in next 1 yr & 1.5 Also by any chance you have a spread sheet which takes into consideration multiple interest rates. Since the interest rates are now linked to RBIs rapo rates, one can reduce the same. Banks won;t tell you this stuff. One needs to do it by pursuing behind the branch manager.
According to this video, then, many people with home loan should take a top up loan, which they get at mostly same rate & invest in mutual funds. Hence, More Factors to consider are 1. Ideally one should not invest when there is loan as loan brings mental burden for most of the people, unless A. you are government employee & have job security or B. you are good at maths & understand that this mental burden is only virtual, it is just in mind & actually doesn't exists or C. you are brave enough to live life with loans or doesn't care about loans. 2. Is it the home loan on your very 1st home & you were so poor that even your parents couldn't build their own home in their life. According to financial experts, in this scenario you should pay of the loan & reduce mental burden. But according to maths, if you are in 20-30% tax bracket & enjoying the tax benefit due to home loan, then you can invest the money in safest mode of invest i. e. In SBI FDs, preferably in joint account with your "NON-EARNING" mother or father, make 200-1000 ₹/month profit by doing this (estimated by difference in FD Interest rate (0.5% extra for senior citizens in case of joint account) minus effective interest rate which comes after enjoying tax benefit) & also builds corpus to survive a crisis of sudden job loss. It is only applicable for loans less than around 22-24 lakhs & interest rates of 7-7.5%. (These exact figures shall be estimated by calculation taking into account the exact tax benefit). 3. If you decide to invest, instead, for how long you plan to invest & how much is expected returns in that period? (probably this point Ankoor covered) 🙏
Sir AI aur zucku bhai to hamari batein sun hi lete hai Par aap kabse hamari batein sunane lage😁😁 Aaj hi dad ko bola ki car loan khatm karu ya invest kru?? And here my idol comes up with good video❤️
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hi Mr Ankur,thanks nice work as usual ...however for home loan one gets additional savings in tax so my study on the subject says even if someone is managing investment with returns similar to the home loan interest ...it is still better to avoid prepayment ...i have excel sheets also to prove my point if you like to see them will share the excel sheets... Thanks Utpal
Great video, though pls account for various taxes in the transactions as they will take out a big chunk out of the percentages involved. And maybe bring in life stage expectation and goals. Great stuff, super helpful.
Another angle to prepayment - If you get a bonus in the initial 2-3 yrs itself, then prepayment would actually result in paying a higher effective rate of interest on the total principal as the initial 2-3 years had a higher proportion of interest payments.
True ☺️ after watching this video I followed increasing the EMI last year and this year...my repayment tenure is reduced to only 11years from 25 years. Thank you Mr Warikoo! Now learning from your other videos and applying the knowledge given in my life. Thanks once again 🙂
Ankur... You make such informative videos... Applicable to people in all walks of life ...I feel watching your videos adds value to my day... Thanks and continue to do the good work of sharing experiences and building knowledge ☺️
Video is good Ankur Sir. However if we can pay off the loan early, the satisfaction it gives that you are loan free is more than the return on investment. Also if you want to take any other further loans, it gives clear way for applying for new loan. Pls share your thoughts
Ankur, do make a video on 1. How to make better decisions 2. 10 Life advice for people in their 20s amd 30s 3. Business and Entrepreneurship tips and advice
Hi Ankur, You have neglected the tax components. If we repay home/education loan we get tax benefits. On the other hand if we invest we will be taxed on salary+long term capital gains tax (Assuming investment in indexed MF). For someone in 20% / 30% tax slab, it will be huge difference.
Hi Ankur, yaar abb tum logo ke dimag padhna seekh Gaye ho... This topic was on my mind for almost 1 month and after lot of deliberation i too somewhat arrived at similar approach... Keep it up...
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Mr. Jupiter forgot to take fees charged for prepayment of personal loan on remaining Bal into consideration in his Excel sheet. Eg HDFC says 4% fees will be levied if prepayment made within 24 months.. fees= (500000 -100000)*4%= 16000 . Total 116000
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It was right on time, when I just got the lumpsum amount and was planning to clear the loan. By the way I have got amount which I can payoff full loan amount and loan period ends in 12 months. Downloading your excel sheet to play with ;-)
Sir, Is investing in an online certificate program (Executive MBA) from IIM worth 6 -7 lakhs INR worth it? What I mean is would it be beneficial for career growth? Awaiting your reply. Thanks
This is for the people to think they are good at Maths. First of all, congratulations because there are only 5% on this planet who are actually good at maths! But note that life has its own complex calculations and in many unplanned and uncertain ways. Therefore, your first target should be to become debt-free whatever be your condition/situation. It not only gives you mental peace but also confines you in moving towards other opportunities that you can then start saving and investing aggressively.
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Wow do you really read our minds? I have a lumpsum amount and really confused if I need to pay my education loan or invest it.. I'm still confused ad I didn't understand the video fully (I do not understand hindi). May be I will watch it again or do more research
Jupiter bank is really great! My account got opened within 4 minutes and working really great, just have this single issue that jupiter app stops working when the registered SIM is out of that phone.
Hi Ankur Sir, Thank you so very much for this detailed video. As I started watching your videos since last six months. I realized my few life mistakes ( Taking personal loan to invest into Real Estate & Closing the PL at the end of the tenure ). But fortunately I feel good after watching this video that the CHOICE for closing my PL was a good (at-least not too bad) idea. Hope to see you many more learnings from you. JAZAKALLAH Thanks Mirza
Every tries to sell you something, some sells Insurance policy, some sells credit cards, some sells loans and some sell content, and this is best content. Make a video in how to avoid all these sellers please in all our lifes
You made me feel like a big bro to whom i can go sit and discuss my concerns in any topic of the life and have the surity to get some good direction) Keep impacting keep growing!
what a timing of the video warikoo sir.. same case is with me as I was working from last one week on this.. thank you for some insights which will help in my excel working.
Solid explanation, Ankur. The excel sheet demonstration works like magic. Always great to see exactly what you’re talking about using mathematical proof on the screen.
Excellent explanation as always while doing Excel sheet calculation showing other things in the vedio please reduce face cam (it's a personal opinion) that makes other things also betr
Sir last ka part to smj aya interest loan ka kam h to market me daal do market ka kam h to loan me daal do paise par starting ka sir ke upr se gya ek video bando ispe
You miss a crucial comparison. When two stocks are compared, ideal comparison is not return, but risk adjusted return (Sharpe ratio). I.e return for the risk you took. In this case, interest on loan is saved without any risk. You will for sure save that amount if you pay off the loan. Whereas returns from markets have a risk factor and are uncertain. That is why people feel intuitively that it is better to pay off the loan. And they're right to an extent because you haven't factored it in. Search Sharpe ratio you will understand. It is not only a mathematical calculation. The question is: Is return with zero risk = higher return with high risk. It's about each person's investing and risk appetite. Mere math model is insufficient
There is saying ki - agar aapke pas paise hai loan chukane ke aur aapke pas ek bad loan aur ek chota loan hai, toh chota loan chukae. Bada loan toh liya hi lambe samay k liye hai. This calculation says the same. Ek bada loan samay k sath chota hota jata hai.
First target is to become loan free irrespective of rate of interest becoz it gives u mental peace . My car loan is at 5.5% then also I am putting my savings to close that loan.
Basically it's the mental burden of loan which people wants to remove from their shoulder so they never thinks about investing lump-sum amount to market
To a layman like me, it seems there are other factors that should also be considered:- 1. tax benefit 2. inflation 3. floating interest rates? 4. Whether the same distribution of principle/ interest repayment method is applicable for all loans. If these were also included, it would have been a more convincing video. The explanation was also kind of all over the place. Sorry for being that guy. I just was hoping more really, from someone like you. Anyway great job like always. Big Fan.
Only one important aspect is missed I think, if I prepay the loan with lumpsum then I can start investing the emi in nifty 50 sip which will also grow with 15 percent. Also investing lumpsum in nifty 50 may not be as good as sip
Thanks for the insights in this video. I would like to know how to make best use of HL OD account, not sure if there's a video already done on this topic else kindly make one.
Cloud you please make a video on how we can buy Mutual funds and set up automatic payments in Coin App it was really confusing for me. It will beneficial for many people like me.
I liked the facts explained. I would like to add that the loans have insurance and you need not pay loan in case of death. So do your calculations and invest / save lum sum amount for family.
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Sir link of that Excel sheet.....??
Exact timings of your videos....there's this situation in our life... And we check your channel for solution... And exact video is right up there...
Sir What I'f someone has taken education loan and the bank is taking compound interest on that .....then how the situation changes with respect to principal amount and interest EMI...pls explain or can you pls make a single video on bank education loan taking compound interest how they take money and how much we end up paying pls make one video on this topic
How to make investment excel sheet from starting please make a vedio
@🆆hatsapp➕①②①③④⓪①④⑤③⑧ sir I couldn't do my loan calculation on the above pinged Excel sheet , how do I edit my loan details ?
Dear sir, in this description you have discounted one or two biggest factors.. First being Risk involved with carrying the debt. Second peace of mind when you don't have any debt to be paid.. I think that plays major role for overall well being.
Following you helps me a lot. And i love your video that is " I was lost at 24" because its very hard to break the expectation of your family that you have show them. Thanks warikoo
@🆆hatsapp➕①②①③④⓪①④⑤③⑧sir I'm having joining tomorrow I'm not interested to do job in IT sector .i want to do business but no idea WT business i should do . stressed lot sir 😥😥
Very good explanation. Thank you Ankur. However, I think one more aspect needs to be considered while doing this comparative evaluation, i.e. Tax on Capital Gains applicable. In most cases, people forget to consider this Tax component while checking out return, which makes the difference in actual money availability. That's my personal thought.
Good and important catch sir💯
You get tax benefit on loan interest too.
@@kumarindiaamit not on all type of loans, only home loan
@@ravishkumar2205 education loan as well.
I had 17 Lakhs principal amount in Loan. I had 17 Lakhs lumpsom. So I cleared my home loan.. I don't believe in excel sheet. I don't have to pay EMI every month. I will now invest 25k in SIP.
thats emotions and not maths..!! both are right in its own sense.
Bad call if you already had good monthly cash flow
What is the guarantee of life.. it's always better to pay off the debt for the well being of your family. Again, it's totally personal choice though.
You can't sava 2 lac loan now
You did fantastic. This is difference between theory which sir is giving and practical which you did.
What a consistency ankur sir
Just finished 20habits video and made a notes of 8 page definitely that was the best video in 2022 I have seen
I'm 17 and I'm grateful to know all this things this much early
You're my mentor Ankur ♥️
Another important factor to consider is job security.. Sometimes it is better to pay off a loan because jobs are not secure imo.
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Yeah people don't want to consider that possibility of job loss. Somehow they are ok with the fact that if they lose jobs in another COVID-like situation, everyone will lose it and not just them alone. And everyone will have their properties siezed and not just them alone. So people are ok being homeless if everyone around is being homeless.
Second, even if some people consider the possibility of job loss, they just rule out the possibility of remaining jobless for years to come and eventually lose all their life savings along with their home. And trust me, there are people out there who lost their jobs 3-4 years ago and are still jobless.
This video actually helped me when I played with the excel and explained me if I should pay off my loan or, should invest. Actually now I just calculated that for my left over loan my rate of interest is only 6.9%. Thank you so much. Big Heart ♥
One other suggestion:
Pay off the loan. Recalculate the EMI after payoff. Use the amount of EMI saved as above to invest in a Mutual Fund SIP and get triple benefits as below:
1. Reduce future interest portion payable on the loan.
2. Creation of additional savings without any extra burden. Because the total outflow per month for recalculated Loan EMI + MF SIP will be equal to old EMI amount.
3. By investing in SIP, you average out the market uncertainties that come with investing in lump sum. Because timing of the investment also plays a role in determining whether your lump sum investment will be profitable at the time you need it and not trying to wait for the market to bounce back.
The only catch is that the lump sum amount that you received in the initial stages of the loan, you need to forget it right now. But it will come back later with a decent return on investment.
This is probably the better advice and best of both worlds. One thing to note though, Banks will not recalculate or reduce your EMI but instead recalculate and decrease your loan tenure. So if your goal is to save the difference in EMI and invest it, you need to contact your bank to have them reduce the EMI instead of loan tenure.
ĺ
Bang on - and best advice according to me too.. The amount you save as EMI can be invested into MF's and let the money grow along with the peace of mind you have from a debt free situation..
this calculation is valid provided the loan is in floating interest rate . If it is fixed interest anyhow one have to pay the total interest
Ankur sir,
Thanks a lot for educating us. I am in my 20's and working in MNC. Your video always inspirs me. In many videos you said " ki Maine paise ko lekar bahut galat bhi decision liye hey " always inspirs me in a different way. Thanks a lot.
Whatever we need to know regarding financial management, one stop solution is this channel...
Thanq so much Ankur ji
Now I feel proud that I am having same thinking as my financial guru.
Thank you sir
According to this video, then, many people with home loan should take a top up loan, which they get at mostly same rate & invest in mutual funds.
Hence, More Factors to consider are
1. Ideally one should not invest when there is loan as loan brings mental burden for most of the people, unless
A. you are government employee & have job security or
B. you are good at maths & understand that this mental burden is only virtual, it is just in mind & actually doesn't exists or
C. you are brave enough to live life with loans or doesn't care about loans.
2. Is it the home loan on your very 1st home & you were so poor that even your parents couldn't build their own home in their life. According to financial experts, in this scenario you should pay of the loan & reduce mental burden. But according to maths, if you are in 20-30% tax bracket & enjoying the tax benefit due to home loan, then you can invest the money in safest mode of invest i. e. In SBI FDs, preferably in joint account with your "NON-EARNING" mother or father, make 200-1000 ₹/month profit by doing this (estimated by difference in FD Interest rate (0.5% extra for senior citizens in case of joint account) minus effective interest rate which comes after enjoying tax benefit) & also builds corpus to survive a crisis of sudden job loss. It is only applicable for loans less than around 22-24 lakhs & interest rates of 7-7.5%. (These exact figures shall be estimated by calculation taking into account the exact tax benefit).
3. If you decide to invest, instead, for how long you plan to invest & how much is expected returns in that period? (probably this point Ankoor covered) 🙏
Ankur is so great at what he does. People consider him a guru of finance and life in general.
Thanks for this Ankur. It's very helpful as I have just started my Education Loan Repayment this month after passing out college in 2021...
Never knew cryptocurrencys could be so challenging! Kept running back to these RUclips videos to learn more about this your video is indeed helpful.
Who else think this Crypto trade is kinda easy but is way to nervous to start,.
Trade has left me no choice but to keep investing because it makes so much profit for me.
i have been trading offshore and still have not made my own profit which strategy do you use please .
Got linked up With Mrs Stacy Griffin Kartner o days ago never knew anyone will know her here.
She is a genius
I can just thank you from my heart and soul. You are educating us what we need to make our financial decisions wisely. 🙏🏼❤️
By referring your guidance I had cleared my personal loan taken while medical emergency of dads health from my EPF amount and saved intrest of 20000/- thanks for your video and improving our knowledge regarding money management
Although I like what you presented in this video however there are 2 major factors that were not considered
1) tax benifits on loan (like home loan etc)
2) tax implications on capital Gains
I know that this video would have become complicated if these 2 points would have been considered but we can't simply make content look simple just for sake of it and by simply ignoring 2 major major practical factors that will completely change the equation,
Would Love to read your thoughts!
Regards,
-A admirer of your work
Also when go to repay the partially or fully for the loan. Bank will charge extra 4% to 6% of the outstanding amount as penalty 😒 that is left out.
@@sumankumary that’s only applicable on fixed rate loans, not on home loans. In that you can pay as much and whenever. I also know that the penalties are going away now on credit cards as companies wants both good and bad payers for profitable business.
This is the exact dilemma I have right now. Commenting before finishing the video. I know already that I'll follow your instruction.
I was waiting for you to mention about the tax benefits especially for home loan. I think it reduces home loan rate by about 2% if you are in highest tax paying bracket of 30%
I always feel that , Instead of paying loan off very early, invest in market
But after covid situation- life has no guarantee and now feeling I need to pay off my loan now and I can invest in market later (wait for crash n enter)
Yes sir. I have Personal loan and got bonus. I invested 40% in market and 60% in hand to invest in sip.
I didn't cleared my loan as only 24 months left in completion and I saw my emi is now mostly principal and less interest.
Time 0:56 mene abhi video dekhana start kari hai or mujko esa lagta hai ki phele mai loan pay karna shai samjhunga (:
Finally Ankur is back with being Ankur..! Keep up the quality.. Please yar, don't make it all ads..
This is what I was thinking from last 2-3 days and now I saw your video.... Great help....Thank you....
Brilliant We are the blessed generation to learn all this for free through a screen that fits in a pocket. Thank you so much Anukar. All your videos helped a lot to make financial decisions easy and wise 😊😃
The stock market have always and will always be a volatile market, that is why it is important to have proper research, analysis and strategy when investing
Great advice, i used to just watch youtube tutorials and videos,but still made losses when i traded on my own. luckily i came across and watched an interview on CNBC where the anchor kept mentioning "...Kathy Genelle Britton...". This prompted me to get in touch with her, her strategy and experience are what has made me so much profits these past months.
I’m not good doing it alone but getting into the market has been my best decision so far in my road to financial independence as it turned out lucrative for me.
Great stuff. I watch several youtube videos on how to trade in the stock market but haven't made any headstart because they are either talking some gibberish or sharing their story of how they made it and I do not want to make mistakes by taking risks in my own hands.
it's really nice to see someone else talk about Kathy Britton, she really has been my guardian angel in the market, helping me recover from the losses i made when i was still trading on my own,her strategies and experience has made my financial journey more fruitful.
Video came at the right moment. Was about to foreclose my loan which had only 1 year left n obviously most interest component i have already paid.
Hi Ankur, this was very helpful. However, can you please do a detailed video on how to smartly repay a huge education loan ? How to do lump sum payments and when to not? It would be really helpful. Thanks!!
I have done a video on how to pay off loans faster.
@@warikoo sir ek video banaye on how businesses person can pay zero taxes leagally thanks
@🆆hatsapp➕①②①③④⓪①④⑤③⑧ fake account stay away .
sir, this is exactly what I was trying to figure out from past 2 weeks with my excel If to repay loan faster or invest more aggressively...sure it did help to bring some clarity..thanks
It isn't this complex. You pay the loan when:
Rate of loan interest > Rate of return - rate at which your gains will be taxed
Shouldn't your wordings be
When Rate of loan interest is more that Rate of Return - rate at which your gains "are estimated AFTER paying tax"?
By the way, concept is simple but not easy. It is to be noted that, Opposite of complex is simple & opposite of easy is difficult. Formula creating, solving it & estimating the answer is very difficult, given that there could be many factors like salary increment & Lump Sump amount of Performance Linked Incentive may come in June & one don't know how much it may come, revision in loan interest rate etc etc. 😊
Inshort,
take loan at some intrest,
Invest that money in different spaces whose return(obv after taxation) is more than loan taken+intrest, = paisa hi paisa?
@@Atzee yeah exactly, if you have some source which genarate more return % than your loan intrest then you will make money.
That literally how bank makes money (Giving 4-5% return on FD and taking > 8% loan interest). Another example is corporate bonds or companies taking debt, it will only makes sense if they think their business will grow far more higher rate than interest.
@@PankajSingh-qc5mq how about taking a loan of about some lakh from bank, investing whole on stocks.. will it work???
As stocks return in approx 20 if everything goes right.. and intrest would be 8pa.. so there's a 12% extra money...
I'm a student, and i think probably I'll do this in my future...
@@Atzee While your theory may sound reasoned, you need to add mathematical risk. Let me explain.
Equity market may provide 15% returns after removing taxes, which may be higher than loan interest rate. However, banks expect the loan to he repaid consistently, while equity markets are inherently risky & fluctuating - so 1. No bank will give you loan to invest in risky investments like equity market. 2. Even if you take the loan, there is huge risk that you'll default as you won't be able to consistently create cash to repay the installments - as to earn good returns, one must keep the investment as it is for a long term in equity market.
Good stuff. I used the other ways to do the re-payment. I prepayed my home home loan (35 lacs for 12 yrs 7.2%) by withdrawing the LIC & old PPF so after a year I paid 10 lacs after 7 months. During pandemic due to work from home I was not spending (10K on petrol + 1.4K on toll pass + 1.4K on metro pass and 2.5K parking charges ~ 15-16 K per month). I paid all that as a pre-payment & was able to bring the capital amount by 2-3 lacs. Now my liability to loan is 10 lacs or less and reducing. I will be done with this loan in next 1 yr & 1.5
Also by any chance you have a spread sheet which takes into consideration multiple interest rates. Since the interest rates are now linked to RBIs rapo rates, one can reduce the same. Banks won;t tell you this stuff. One needs to do it by pursuing behind the branch manager.
I am facing exact senerio and i got Ankur sir's video...... Exactly on sam subject.... Thank you 😊❤️
According to this video, then, many people with home loan should take a top up loan, which they get at mostly same rate & invest in mutual funds.
Hence, More Factors to consider are
1. Ideally one should not invest when there is loan as loan brings mental burden for most of the people, unless
A. you are government employee & have job security or
B. you are good at maths & understand that this mental burden is only virtual, it is just in mind & actually doesn't exists or
C. you are brave enough to live life with loans or doesn't care about loans.
2. Is it the home loan on your very 1st home & you were so poor that even your parents couldn't build their own home in their life. According to financial experts, in this scenario you should pay of the loan & reduce mental burden. But according to maths, if you are in 20-30% tax bracket & enjoying the tax benefit due to home loan, then you can invest the money in safest mode of invest i. e. In SBI FDs, preferably in joint account with your "NON-EARNING" mother or father, make 200-1000 ₹/month profit by doing this (estimated by difference in FD Interest rate (0.5% extra for senior citizens in case of joint account) minus effective interest rate which comes after enjoying tax benefit) & also builds corpus to survive a crisis of sudden job loss. It is only applicable for loans less than around 22-24 lakhs & interest rates of 7-7.5%. (These exact figures shall be estimated by calculation taking into account the exact tax benefit).
3. If you decide to invest, instead, for how long you plan to invest & how much is expected returns in that period? (probably this point Ankoor covered) 🙏
Sir AI aur zucku bhai to hamari batein sun hi lete hai
Par aap kabse hamari batein sunane lage😁😁
Aaj hi dad ko bola ki car loan khatm karu ya invest kru??
And here my idol comes up with good video❤️
Thank You so much Sir, learning so much from your videos.
People will be kicking themselves after the fluctuations in price and cryptocurrency this is the best time to trade Crypto.....BE WISE 🤷.
I am from Denver Colorado USA I connected with him and he has helped me a lot,he makes so much profit for me he is a FINRA agent, the best I can invest with so far ever since I came across expert Steven Hatzakis' my bad turned out being good and profitable. He’s made success earlier than we thought.
I invested $1,030 and I make $3,970 weekly trading with him, I only trust Steven Hatzakis with my investments. I am now able to send my kids to great schools in LA, all thanks to Steven J. Hatzakis'
Your videos are amazing. Just one request please keep realistic numbers while using excel because young people don’t pay interest /EMI of 1 lakh or so
hi Mr Ankur,thanks nice work as usual ...however for home loan one gets additional savings in tax so my study on the subject says even if someone is managing investment with returns similar to the home loan interest ...it is still better to avoid prepayment ...i have excel sheets also to prove my point if you like to see them will share the excel sheets... Thanks Utpal
Please share the excel sheet
All words, no play of yours. Most of you are justifying your home loans
Ye kuch nya sikhne ko mila... Muje to pehle se trust tha iss Excel pe... It plays around numbers like a pro 🎉
Great video, though pls account for various taxes in the transactions as they will take out a big chunk out of the percentages involved. And maybe bring in life stage expectation and goals. Great stuff, super helpful.
Another angle to prepayment - If you get a bonus in the initial 2-3 yrs itself, then prepayment would actually result in paying a higher effective rate of interest on the total principal as the initial 2-3 years had a higher proportion of interest payments.
Hooked to your videos Mr Warikoo! Already setting financial goals to be truly debt free soon 😊
👆🏽 👆🏽 Thanks for watching. Reach out I have a project that you might find interesting.
True ☺️ after watching this video I followed increasing the EMI last year and this year...my repayment tenure is reduced to only 11years from 25 years. Thank you Mr Warikoo! Now learning from your other videos and applying the knowledge given in my life. Thanks once again 🙂
Ankur... You make such informative videos... Applicable to people in all walks of life ...I feel watching your videos adds value to my day... Thanks and continue to do the good work of sharing experiences and building knowledge ☺️
Excellent video. Just to add some loans like home loan/ EV loan have some income tax expemtions. This should also be taken into consideration.
Video is good Ankur Sir. However if we can pay off the loan early, the satisfaction it gives that you are loan free is more than the return on investment. Also if you want to take any other further loans, it gives clear way for applying for new loan. Pls share your thoughts
Ankur, do make a video on
1. How to make better decisions
2. 10 Life advice for people in their 20s amd 30s
3. Business and Entrepreneurship tips and advice
Hi Ankur,
You have neglected the tax components.
If we repay home/education loan we get tax benefits. On the other hand if we invest we will be taxed on salary+long term capital gains tax (Assuming investment in indexed MF). For someone in 20% / 30% tax slab, it will be huge difference.
You are right! People paying 30% tax for them keeping the loan is better
Hi Ankur, yaar abb tum logo ke dimag padhna seekh Gaye ho... This topic was on my mind for almost 1 month and after lot of deliberation i too somewhat arrived at similar approach... Keep it up...
*NOBODY BECOMES MILLIONAIRE OR A BILLIONAIRE'S BY WORKING FOR OTHERS AND DEPENDING ON THEM, GOOD INVESTMENT BRING MILLIONS OF DOLLARS, AND CONSISTENCY BRING BILLIONS, THE MARKET IS ALL ABOUT BITCOIN AT THE MOMENT NOW.,*
You're right ma,
That is why I had to start forex trading
2months ago and now am making benefits from it,
Thanks for introducing me to Sam Justin.
O' Yes I'm a living testimony of Sam Justin
Mr Sam Justin has changed my financial
status for the best,
Sam Justin is obviously the best,
Thank you ankur. Your sheets and content really helps me to set my financial planning n goals..❤
Mr. Jupiter forgot to take fees charged for prepayment of personal loan on remaining Bal into consideration in his Excel sheet. Eg HDFC says 4% fees will be levied if prepayment made within 24 months.. fees= (500000 -100000)*4%= 16000 . Total 116000
Who's Jupiter
Sounds like crazy...excel excel khelte hai...I am loving it. ❤️ Thank you ji
Should the tax exemption on loans be also considered?
It should , it missed , may be because it can make video very complex
yes absolutely
This is my secret strategy, started since 2018...😉, But over the time I have revised the implementation.
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All good investors are conversant with expert Nancy. She's in the field just got to keep her instructions and you excel she has an intellectual strategy that cuts down losses, I have the best investing with the aid of Nancy , she is very friendly and so easy to get along within terms of signal and investing tips
Expert Mrs Nancy has aided so many newbies including me. I have 12wins from forex trade with her help. Thanks to her strategies, she's really the best. I've made 16,400$ in 18days
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An extraordinary is the right word for expert Mrs Nancy, she's very experiences as a trader
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Wow..amazing to see another investor who trades with Mrs Nancy's , i am currently on my 5th trade with her and my portfolio has grown tremendously.
@@alaysbiridjitskut6911 Same here lol, I also Earn weekly profits of $ 23, 830 on My Investment Since I started invest with Mrs Nancy's , her trading is the best I have seen
It was right on time, when I just got the lumpsum amount and was planning to clear the loan. By the way I have got amount which I can payoff full loan amount and loan period ends in 12 months. Downloading your excel sheet to play with ;-)
Sir,
Is investing in an online certificate program (Executive MBA) from IIM worth 6 -7 lakhs INR worth it? What I mean is would it be beneficial for career growth?
Awaiting your reply.
Thanks
Ankur Warikoo, making Excel sheet cool again....
How much does the factor of tax benefit on interest payment affect this process?
This is for the people to think they are good at Maths.
First of all, congratulations because there are only 5% on this planet who are actually good at maths!
But note that life has its own complex calculations and in many unplanned and uncertain ways.
Therefore, your first target should be to become debt-free whatever be your condition/situation.
It not only gives you mental peace but also confines you in moving towards other opportunities that you can then start saving and investing aggressively.
Despite the economic downturn,I'm so happy☺️. I have been earning $ 60,000 returns from my $7,000 investment every 13days.
I have heard a lot about Investments with Christine Norine Martin, how good she is and how she has helped People. Please how safe are the profits ?
I have also been trading with her, The profits are secured and over a 100% return on investment directly sent to your wallet. I made up to $560,000 in 2months trading with her
after watching so many RUclips tutorial videos about trading I was still making losses until Mrs Christine N Martin started managing my investments now I make $60,567 weekly. God bless Mrs Christine Norine Martin she's been a blessing to my family.
As a first time investor with Mrs Christine Norine Martin, I started trading with $15,000, now my portfolio is worth $75,600 within the space 2weeks of trading with her ,I only trust Mrs Christine Norine Martin with my investments. I am now able to send my kids to great schools in LA.
So delighted seeing my broker talked bout on RUclips, This was exactly how I got recommendation bout Mrs Christine Norine Martin, At First I was a bit skeptical but eventually I gave her a trail with my little investment and I got huge profit..
I love these excel calculations and assumptions about life
For the banker who are working with bank with loan of less simple interest should invest rather then to pay off the debt ....
One of most creative video i have ever seen on a financial literacy.
Wow do you really read our minds? I have a lumpsum amount and really confused if I need to pay my education loan or invest it.. I'm still confused ad I didn't understand the video fully (I do not understand hindi). May be I will watch it again or do more research
Jupiter bank is really great! My account got opened within 4 minutes and working really great, just have this single issue that jupiter app stops working when the registered SIM is out of that phone.
You are doing amazing work for the community for "Aam Admi" respect from a Pakistani, stay happy and healthy
Hi Ankur Sir,
Thank you so very much for this detailed video.
As I started watching your videos since last six months. I realized my few life mistakes ( Taking personal loan to invest into Real Estate & Closing the PL at the end of the tenure ).
But fortunately I feel good after watching this video that the CHOICE for closing my PL was a good (at-least not too bad) idea.
Hope to see you many more learnings from you.
JAZAKALLAH
Thanks
Mirza
This still is a burning point of discussion in my family, what to do with a lump sum amount of money ?
Thanks Ankur, for helping me out with this.
Every tries to sell you something, some sells Insurance policy, some sells credit cards, some sells loans and some sell content, and this is best content. Make a video in how to avoid all these sellers please in all our lifes
You made me feel like a big bro to whom i can go sit and discuss my concerns in any topic of the life and have the surity to get some good direction) Keep impacting keep growing!
Sir your video are preety owesome and Fully explained concept. That give us an important value of laon and repayment
Superb intellectual content with all calculations, This is how we should focus on our cash flow. This is priceless content. Thank you very much sir.
ᴀʟᴡᴀʏs ᴀᴄᴛɪᴠᴇ ᴏɴ ᴡʜᴀᴛsᴀᴘᴘ👆🇮🇳✍️*
what a timing of the video warikoo sir.. same case is with me as I was working from last one week on this.. thank you for some insights which will help in my excel working.
Solid explanation, Ankur. The excel sheet demonstration works like magic. Always great to see exactly what you’re talking about using mathematical proof on the screen.
@waTsapp➕①④①⑨❷❸❼⑥③①②💯
Hi sir
Excellent explanation as always while doing Excel sheet calculation showing other things in the vedio please reduce face cam (it's a personal opinion) that makes other things also betr
real life based scenario par video bana rahe ho sir, keep it up!
Sir last ka part to smj aya interest loan ka kam h to market me daal do market ka kam h to loan me daal do paise par starting ka sir ke upr se gya ek video bando ispe
You miss a crucial comparison. When two stocks are compared, ideal comparison is not return, but risk adjusted return (Sharpe ratio). I.e return for the risk you took. In this case, interest on loan is saved without any risk. You will for sure save that amount if you pay off the loan. Whereas returns from markets have a risk factor and are uncertain.
That is why people feel intuitively that it is better to pay off the loan. And they're right to an extent because you haven't factored it in. Search Sharpe ratio you will understand.
It is not only a mathematical calculation. The question is: Is return with zero risk = higher return with high risk. It's about each person's investing and risk appetite. Mere math model is insufficient
I am obessed with your ads every where when i open RUclips your ads appear btw video content is great.
There is saying ki - agar aapke pas paise hai loan chukane ke aur aapke pas ek bad loan aur ek chota loan hai, toh chota loan chukae. Bada loan toh liya hi lambe samay k liye hai. This calculation says the same. Ek bada loan samay k sath chota hota jata hai.
Please make a video in Insurance!! Which type of insurance to buy when we get our first job?
Please Ankur Sir make one video on it🙏🙏
Your explanation was fabulous ...But please add moratorium period in that.. Much needed.
Thank you sir. This is the video which i was waiting for...Loan vs Lumpsump..👌🏻👌🏻
Thank You Sir, As always you help people by sharing your best analysis to improve their financial conditions. God Bless You.
Thanx sir it make my concept clear...i was aslo in such dilemma..to pay car loan or invest in such bear market
First target is to become loan free irrespective of rate of interest becoz it gives u mental peace . My car loan is at 5.5% then also I am putting my savings to close that loan.
Basically it's the mental burden of loan which people wants to remove from their shoulder so they never thinks about investing lump-sum amount to market
To a layman like me, it seems there are other factors that should also be considered:-
1. tax benefit
2. inflation
3. floating interest rates?
4. Whether the same distribution of principle/ interest repayment method is applicable for all loans.
If these were also included, it would have been a more convincing video. The explanation was also kind of all over the place.
Sorry for being that guy.
I just was hoping more really, from someone like you.
Anyway great job like always.
Big Fan.
Sir please make a video on how students can fullfill their small desires ex:- bike,car,phone by investing
Loved the conclusion at the end as well. Made every point made in the video crystal clear.
The second part is that the loan is for what reason if it's a house loan then u can save taxes on it so u should not pay it immediately.
Only one important aspect is missed I think, if I prepay the loan with lumpsum then I can start investing the emi in nifty 50 sip which will also grow with 15 percent. Also investing lumpsum in nifty 50 may not be as good as sip
Thanks for the insights in this video. I would like to know how to make best use of HL OD account, not sure if there's a video already done on this topic else kindly make one.
Cloud you please make a video on how we can buy Mutual funds and set up automatic payments in Coin App
it was really confusing for me. It will beneficial for many people like me.
☝️☝️☝️☝️ write me now for mentoring and investing purposes
sir please make a video ….. is taking loan for investment is good if good what should we do with it….. amount is good about 20-25 lakhs
I liked the facts explained. I would like to add that the loans have insurance and you need not pay loan in case of death. So do your calculations and invest / save lum sum amount for family.
That insurance is v costly. More expensive than term insurance
Ek number bacchi ❤️🔥
Loan pay off karo...karze se chutrara pao or zindagimain sukoon se bada kuch nai hota
Super Thanks Bro....You Should Try in TV and Ad Film....U look very Cool
Content king ...agar hota to 100 baar subscribe kar leta