I have maxgain homeloan of 30 lakh with startung 9.5% interest floating rate for 20 years. I do see emi credit on OD account on each month and debit interest on end of the month. I do not understand where the principal is getting debited?
In the interest certificate I can see I paid principal along with interest properly. So am little confused on the principal part. Can you please clarify how it works?
Whether you parked money in available balance?
yes i do it periodically. i she principal part of available balance? In that case what happen to it if i need to to withdraw all available balance in an emergency?
If you parked a certain amount, then the saved interest part due to your parked money will be credited to the available balance. In your EMI, the principal part will be adjusted towards the principal due. Yes, you can withdraw the money as per your wish.
Thank You! But I am still not clear here. my EMI is 28k and it is getting credited in EMI day to my OD account. on the last day of month I see a debit interest around 17k . so around 11k is lying in my available balance (which includes the saved interest). so effectively it seems I am paying only the interest to bank as there is no debit towards the principal from EMI in my OD account. something I am missing here surely.
In that transaction, Rs.17,000 which debited from your account include remaining part of interest and principal.
Thank You! I Currently I am planning to invest some part of interest savings on monthly basis. i.e if in some month I save 11000( 28-17) like above example I wil invest around 6000 in some good MF and keep the remaining in maxgain account. Also I am keeping my emergency fund for unexpected expense in maxgain od account only as I could not find anything else with liquidity and good return. Please share your views on these ideas. Shoud I keep emergency fund separate from maxgain OD?