Don’t Prepay Home Loan. Newsletter Link In Comment Section.

Most of us look at loans the wrong way. 😓

We incorrectly assume that lower the interest amount paid the cheaper it is.

Well, not exactly. ❌

Instead of looking at interest amount paid we should look at effective interest rate.

For home loans and education loans the effective interest rate after tax benefits is around 4-5% !

No ask yourself this - If you have some extra money, would you want to use it to save 5% interest or invest it to get 10%-12% returns from stock market.

I know you might say stock market isn’t guaranteed. But home loans are for 20 years. Over 20 year period NIFTY has given 15% CAGR.

I’m being more conservative and assumed 10-12%.

👉🏻 For me the answer is the latter.

However, if handling loans is not your cup of tea or if you have unstable income then prepaying is the better option.
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#financewithsharan #loanofficer #loan #savemoney #investing #stockmarket #stockmarketindia

[musicalbeats]

"Explain yourself" - Josh ostusanya

[Dadadadadadada]

I like the way he is confident about 12% return in stock market 😂😂

[lalityay]

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.

[sanjaynatekar]

This is reason why SEBI is banning such finfluencers who keep on misguiding viewers

[georgemiller]

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 !

[saruthecreator]

bing bong, beep bop beeop ...
:p

🤣

[amarnathchitumalla]

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.

[naveengc]

If repaying gives peace of mind, then please repay and be debt free in the life.

[tejalthanage]

Dont fall such trap repay your loan as early as possible .

[PPPPSSSSCCCC]

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..

[nishanthakash]

'Nimmoun..' 😂👌🔥🔥 is an emotion of every guy in North Karnataka.. 😂😂😂 Yavano avanu 😂😂😂🙏🤙👌

[hrutvikjoshi]

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.

[naveenkbalaji]

Yavan owunu
I'm so happy by these two words-

[sanjaynatekar]

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%

[pattum]

Close the loan as early as possible. He looks to be favoring banks who earn big money from our interest

[chiragasnani]

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

[rahulvarma]

Great work. Your creative way of expressing valuable information is also attracting 7 years kid - benefits - awareness about finance & with bonus of English learning 😅

[allandwe]

Thanks for helping me sir I am learning so much by your channel about financing

Thanks 😊

[oldmonk.]

That bip boop, bip boop was just next level sharan 😎

[vidyashautecuisine]

Explaining a serious subject in a humourous way...why can't school teachers be like u Sharan