I have taken a Home loan with SBI through Max Gain account in sept 2012, recently I pre paid 5 lakhs to reduce my principal amount and reset the EMI.
My query is that each month an entry is done for principal amount i.e. 17 th of every month amount of principal is auto deducted without any record and on 31st of every month interest is separately deducted for which the entry is seen in the statement and then when EMI on 5th of every month is credited from savings account the balance is adjusted. This is very confusing.
Also recently after prepayment of 5 lakhs there is no change in my DP amount. and last 2 months the proportion of interest and principal deduction has increased. Please explain the mechanism of Max gain… I approached my branch but they were not able to convince properly.