You'll have to pay a total of 50 Lakhs to repay a 25 Lakh Home Loan over 20yrs 😱
But one simple tweak can reduce your tenure and interest
cost by 15%! 💪
A thread 🧵
#finance #FinancialPlanning
But one simple tweak can reduce your tenure and interest
cost by 15%! 💪
A thread 🧵
#finance #FinancialPlanning
• When you start paying your EMIs, let's say 21,000, a major portion (~17k) of that is just interest part and 4,000 is actual principal repayment!
• It's because, at the initial phase of loan repayment, most of the amount goes to interest payments👇
#StocksToBuy
• It's because, at the initial phase of loan repayment, most of the amount goes to interest payments👇
#StocksToBuy
The longer the tenure, the more you pay in interest.
So, try to get a loan for a shorter period, you don't have to pay higher interest.
#InvestmentPlanning
So, try to get a loan for a shorter period, you don't have to pay higher interest.
#InvestmentPlanning
Suppose,
Loan amount= ₹ 25,00,000
Interest Rate = 8% p.a
Tenure = 20 yrs (240 Month)
EMI = ₹ 20,911
Total interest payment apart from the Principal amount of ₹ 25lakh is 25 lakh +
So your interest cost is over 100% of your principal amount!
Loan amount= ₹ 25,00,000
Interest Rate = 8% p.a
Tenure = 20 yrs (240 Month)
EMI = ₹ 20,911
Total interest payment apart from the Principal amount of ₹ 25lakh is 25 lakh +
So your interest cost is over 100% of your principal amount!
Just by reducing the tenure from 20 years to 15 years⬇️
You can save up to ₹ 7 lakh interest just by paying 3k extra!
You can save up to ₹ 7 lakh interest just by paying 3k extra!
Now, if you're paying ₹ 21,000 of EMI per month, just by paying 1 extra EMI each year i.e at the end of the year, you can clear your loan faster and can save on your interest cost👇
Simple yet effective tweaks like this can actually save you lots of additional costs in the long run.
All you require is a little bit of planning and some guidance, which is where Recipe.finology.in can help!
All you require is a little bit of planning and some guidance, which is where Recipe.finology.in can help!
If you have any queries related to personal finance, tweet to us with #AskYourChef and we'll provide you with practical solutions for the same.
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