Knowledge Of The Art Ltd

Do you know how much interest (in rupees) you pay on your bank loans?

Many a time when a person takes a loan, the momentum of the event makes it such that he/she is more worried about satisfying the requirements and the intents behind taking the loan, than considering the financial implications of the facility over time. And, upon approval, the contracts are signed and the finality is seen as the amount on the credit side of his/her bank account. Rather, this should be the start. For your reference, do you know how much interest you will pay on a Rs.1 million loan, say at 9% interest per annum, over let us say, 25 years? The answer is Rs.1,517,589 as interest only, in addition to the reimbursement of the Rs.1 million of capital. Total outlay over the 25 years for the Rs 1.million loan will be thus Rs.2,517,589.