Of course there is no relation. But these are two different queries.
My second query is that when lenders takes your 6 months bank statement on that how they calculate your average balance. Although I know they look at some good balance in one’s account to be maintained. What is the minimum average balance I should maintain in my saving account that I would be using for housing loan next year if my monthly take home salary is RS 1.5 lacs.
I believe now you must have understood my concerning point.
Dear Meutav70, Please quote with which bank you are dealing now? The reason is some banks are now counting mly avg. balance instead of qtly avg. balance.
Interestingly in most PSU banks for a cheque book account, the minimum compulsory amount to be hold on daily basis is 1000 Rs.
IDBI a long time ago & now SBI (recently) have made all saving accounts zero balance.
for any given quarter like 1st Jan – 31st Mar – there are total 90 days (just for sake of example).
Now add up the closing balance in account for all the days , add up and divide by the number of day (90 or 91) , That will be average balance . there is a myth that the average balance is seen on daily basis and your balance can not go down below that limit .
The truth is you can have 10,000 for each 90 days or 90,000 for any 10 days or 9 lacs for 1 day . All will result in same .
However , there might be specific banks who might be calculating it like some other way, but in general this is how its calculated
Hi Ashal,
Of course there is no relation. But these are two different queries.
My second query is that when lenders takes your 6 months bank statement on that how they calculate your average balance. Although I know they look at some good balance in one’s account to be maintained. What is the minimum average balance I should maintain in my saving account that I would be using for housing loan next year if my monthly take home salary is RS 1.5 lacs.
I believe now you must have understood my concerning point.
Warm regards,
Please give me the illustration how the banks while approving loans, calculate the average balance on your saving account statement.
Dear meutsav70, all the 3 banks mentioned by you are calculating the qrtrly avg. balance as dear Manish has illustrated.
Regarding your next query of Loan approval for avg. balance calculation, I’m unable to undertstand any link in between the two.
Thanks
Ashal
Dear Meutav70, Please quote with which bank you are dealing now? The reason is some banks are now counting mly avg. balance instead of qtly avg. balance.
Interestingly in most PSU banks for a cheque book account, the minimum compulsory amount to be hold on daily basis is 1000 Rs.
IDBI a long time ago & now SBI (recently) have made all saving accounts zero balance.
Thanks
Ashal
Dear Ashal,
I’m having my accounts in HDFC and ICICI Bank. My wife’s account is with AXIS Bank.
Warm Regards,
The way its calculated is like this
for any given quarter like 1st Jan – 31st Mar – there are total 90 days (just for sake of example).
Now add up the closing balance in account for all the days , add up and divide by the number of day (90 or 91) , That will be average balance . there is a myth that the average balance is seen on daily basis and your balance can not go down below that limit .
The truth is you can have 10,000 for each 90 days or 90,000 for any 10 days or 9 lacs for 1 day . All will result in same .
However , there might be specific banks who might be calculating it like some other way, but in general this is how its calculated
Manish
Dear Manish,
Thanks a lot for your inputs.
Warm regards,