Hi Ashal
I have a home loan from SBI Maxgain for 29L.
5th June 2013 – 20L was disbursed to the builder
Book Balance – (-2000000)
Available Balance – 900000
7th June 2013 – Deposited Rs 1000 to OD account
Book Balance – (-1999000)
Available Balance – 901000
30th June 2013 – Rs 14619 got debited from the OD account as Debit interest ( 5th June to 30th June) This amount was deducted from Availbale balance and added to Book balance
Book Balance – (-2013169)
Available Balance – 886831
My EMI date is 5th July 2013. I would like to know whether the interest for the period 1st July to 5th July 2013 will be calculated on the new Book balance (-2013169).
How to avoid this interest on the interest, if this is the process followed for the calculation