Question regarding home loan outstanding

POSTED BY Zoeb ON May 10, 2013 7:35 pm COMMENTS (2)

 I have got two different values for loan outstanding via two different mails, on 30th April my loan outstanding was Outstanding principal as on 30-APR-13 : Rs. 20,23,869.00 However, on 8th May the outstanding amount was Outstanding loan balance on 08.05.2013 = Rs.20,27,809.00 Can you please explain this discrepancy? Regards Zoeb Lakdawala 



Answer :

You can call on 020 25505000 for details.Pleae find under

 

H:ACCTS:PREPLET/5185120 Date : 10-MAY-2013
 

MR LAKDAWALA ZOEB KAIZAR
FLAT NO 404,4TH FLOOR,
SANSKRUTI DARSHAN BLDG B,
S.NO 483/2,
CTS NO 1759,
BHOSARI,
-411026
 

Dear Sir/Madam,
 

Ref : Loan Account No : 602067182
Type : RESIDENT HOME LOAN-VARIABLE RATE-MONTHLY REST
——————————————————————-
We refer to your enquiry on/dated 10-MAY-2013 expressing your
intention to prepay the entire loan on 08-MAY-2013 from Own
Sources .
 


The calculations for the same are as under :
Amount (Rs.)
O/S LOAN AS ON 30-APR-2013 : 2023869.00
SIMPLE INTEREST 7 Days : 3940.00@10.15 per annum
—————
Total : 2027809.00
—————


Question is this a correct way for calculating home loans, why the principal increases if the loan is not paid for 7 days?


Regards


Zoeb Lakdawala

 

2 replies on this article “Question regarding home loan outstanding”

  1. Dear Zoeb, if wordings of the letter to you is creating a problem, lwet me solve it for you. the correct wording for you ‘ll be –

    To close the loan on 8th may you need to pay actual loan balance of 30th April + interest for 7 days. So total amount to be paid is 20.27L in place of 20.23L actual loan balance.

    Hope it solve the matter for your understanding.

    Thanks

    Ashal

  2. Ashish says:

    Dear Zoeb,

    This calculation is correct. Bank is charging simple interest for 7 days (from 1st May to 7th May) as you plan to repay the loan on 8th May.

    Now if you don’t pay on 8th May decide to pay on 18th May, the simple interest on balance principal will be recalculated for 17 days and outstanding will go up by another Rs.5000 or so, subject to any EMI payable between this period.

    Ashish

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