How Banks calculate interest on your Loan Account

Summary

In this video, learn how banks, including both public and private sector ones, calculate the interest on your loans. The creator, "अपना मैनेजर," breaks it down using simple formulas and examples. The video explains monthly interest calculations using simple interest formulas, starting with an initial loan amount and considering the outstanding principal on specific dates. By using clear tables and a straightforward approach, the creator demonstrates how to calculate outstanding interest and manage loan payments effectively throughout the loan term. The video encourages viewers to understand these calculations better to manage their loans more effectively and invites them to share the information with others.

Highlights

• Banks use simple interest formula to calculate interest on loans. 🔢
• Interest is calculated monthly based on the outstanding loan amount. 🗓️
• Simple tables can help visualize how interest is applied and calculated. 📈
• Paying off loans regularly can help lower the amount of outstanding interest. 💰
• Sharing financial tips can assist others in managing their finances effectively. 🤗

Key Takeaways

• Understanding how banks calculate loan interest can empower you financially! 💪
• Monthly interest is calculated using simple interest formulas, based on the outstanding principal. 📅
• Use simple tables and examples to grasp how interests on loans evolve each month. 📊
• Being proactive in understanding loans can help manage and minimize interest payments! 🤓
• Share the knowledge and help others manage their finances better. 🌍

Overview

Understanding how banks calculate the interest on your loan is not only empowering but essential for effective financial management. "अपना मैनेजर" walks you through the basic method banks use, specifically focusing on UPSC public and private sector banks. The interest calculations use simple interest formulas, making it easier for you to replicate and understand how much you’ll need to pay each month.

Imagine you’ve taken a loan amounting to 10,000 at an interest rate of 10% for a year. The video guides you through calculating the necessary monthly payment using simple tables to illustrate how your monthly interest and outstanding principal are adjusted. This method allows you to visualize exactly how your loan balance reduces over time, encouraging proactive management of your debts.

By sharing these insights, "अपना मैनेजर" aims to equip you with the knowledge to tackle your loan payments more confidently and even share these actionable insights with friends and family. The takeaway here is not just understanding your personal finances better but to foster a community of financially savvy individuals who can benefit from shared learning and discussion.

How Banks calculate interest on your Loan Account Transcription

• 00:00 - 00:30 Hello friends of Jhaal, today I will tell you that any UPSC public sector bank, this private sector bank, on which religion you calculate that bag on your loan and how you have to pay that interest, let us do its simple calculation. I will also show you how it is calculated, before doing this calculation, you should take care of these things, the first thing is
• 00:30 - 01:00 that whatever loan account you have, it will be charged for a month, that means the minister will be charged forever and Remember that it is two months of Delhi, that means if you have paid in the middle of the month, then whatever will be left after that day, you will understand this example, assuming that the monthly
• 01:00 - 01:30 interest It is calculated by the formula of simple interest, it is calculated by the same formula, you will be able to do it yourself at your home if you have seen my video till the end. Simple Appeal * R in 28.8 Let me tell you that you have taken a loan of 10,000, the bank has given it at 10% and for 1 year If given then interest calculator is done according to the back on it
• 01:30 - 02:00 this is a simple table initially you have taken an amount of 10,000 on which Mi in your bank set something in such a way that within the first month the amount made becomes 33.33 on the principal then as you He is out here almost on the principal and the amount left is 90210 4.17
• 02:00 - 02:30 but this is a simple calculation sheet if you give this mike which is attached to the bank then how does it work now I will tell you the same Let's calculate and tell, let's take the fifth month, this is what I was given earlier in my calculation, I see in the beginning of the fifth month, then it is outstanding, it is 676, so off standing, now let's assume that you have packed this pack on a date. If you have done this, your interest for the whole month, which is your outstanding, is simrai simrai ten percent, the interest which is made for one month was
• 02:30 - 03:00 fifty-six rupees forty-seven, so what happens now that the leave 6.47 add this mantra and 676 which You then the principal amount gets added to it as soon as you pay on a date So he is outstanding, whatever happens by mixing them both, you get that much office training,
• 03:00 - 03:30 see this calculation seats, the first one said 606 interest 15.47 when you did it on Mi, then you became outstanding 5950 I have seen it myself Take a pen and pencil and see that it is very simple, according to this, every month is calculated, you do it here, you become a director in outstanding, now let's assume that I will take a case that you have deposited thousands of rupees in the bank within sixteen days. If you make the payment
• 03:30 - 04:00 , then we should make a slight change in the formula given by me earlier, you should average out the outstanding which is coming, then that means you add the outstanding of the 30 days for the whole 30 days. And divide it, then you will get your interest simply by applying that formula that how much interest the bank charged on you, it depends on telling the outstanding date here, like given
• 04:00 - 04:30 means on a given day, so much office 10:30 t -20 mean competition by dividing it from simple internet banking that I did earlier Told that you can put this in it, I hope that if you have any calculation, then you will be able to pay interest on the loan, please comment below,
• 04:30 - 05:00 share it in your WhatsApp group so that people can benefit from it and please subscribe my channel. Thank you You