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.
I have taken Max gain home loan from SBH bank on august 2015 and had taken 12 months time to start paying EMI. Started EMI in August 2016. I am paying EMI every month.
Bank is now saying since I have taken Max gain loan my interest for the 12months period has added which I have to pay by feb 2017.
Bank is saying if I had taken normal home loan they would have added the interest 12 month repayment period to the loan amount and adjusted in EMI but as I have taken Max gain they are asking me to pay interest of 2 lakhs.
Also how can bank keep on adding interest until I started to pay emi after one year.
With regard to below quote, mine was also under construction property and so if I chose the actual emi, when should I have started paying my emi.
“In the case of under construction property , banks usually disburse the loan amount in part. You have the option either to pay only the interest part of the disbursed loan amount or the actual EMI (which will be considered based on the sanctioned principal amount).”