Thanks for informative article on SBI Maxgain Home Loan features!
A query please:
- if i don’t deposit any surplus amount in OD Account, still would i be able to withdraw money accrued by EMIs?
- For example: in 1st year: say i paid 4 lacs through EMIs, out of which say 3 lacs is interest, so remaining 1 lac is available for me to withdraw?
2. we can withdraw only surplus money (deposited earlier) other than EMIs?
If 1 is yes:
- then OD Account has a drawback that we may be allowed to withdraw debts that we paid through EMIs till date.
- Also wondering if we keep withdrawing contributions from EMIs, will they increase the tenure?
- EMI constitutes two parts. One is interest on the oustanding principal and rest is principal payment part. If you go on paying just interest then how can your principal be cleared within loan tenure? Hence, if you not deposit anything in OD account, then this loan act exactly like other typical loans. In your example, Rs.1 lakh is what you pay towards principal.
- I think you completely misunderstood the concept. Please read how loan and EMI works. Then read this product feature. You will better get any idea.
Thanks for the response!
“in the example: Rs.1 lakh is what you pay towards principal.”
is it available for withdrawal as part of OD feature..?