I have a doubt with respect to the SBI maxgain HL payments. The EMI, I am paying is 28770/month. so the annual payment should be 28770*12= 345240, but when I checked in the interest certificate for last year it was approx 281654. Is it okay? or something I need to take it up with the bank? If it is okay, could you help to explain the calculation.
Thanks and Regards,
Padmalav-EMI constitutes two parts. One is principal and another is interest. During early years of your loan you pay more as an interest. However, as you reach closer to loan tenure, the interest part decrease and principal part increases. This is called amortization calculation. In my view, it is correct. However, if you have doubt, then ask the bank to provide a amortization table for your loan. They do so.