Dear Basu, I have taken SBI Maxgain home loan. I have parked some amount I can see the interest collected per month is reduced and more amount taken for principal. But I do not see much change in my balance principal amount I fall under 30% income tax slab ,as interest collected less I am paying more tax Can you please confirm by parking amount is tenure gets reduced. as I am paying more tax is it better to park excess amount in Maxgain or keep the same amount in OD Thanks Basu Sasalatti
Your interest and principal part of EMI depends on how old is your home loan. For example, in initial years interest part will be higher and at later stage principal part. Check with amortization schedule with bank if you have doubt on this. Your loan tenure will not change even if you park amount in OD.