I have a home loan of Rs 40 Lakhs taken in 2009 alongwith MG acct facility. Currently my balance in max gain is about (-) 19 lakhs and available balance is 19 lakhs. The rate of interest being charged is 12.25%. accordingly the interest per month is working out to the tune of 18-19000 per month. In addition an EMI of 34830.00 is being transferred from my SB to OD every month. I keep on putting surplus funds in OD acct as and when avail to me.

Now my question is

(a) why is the interest at the rate of 12.25% is being charged again monthly as I believe that the EMI which I am paying contains the interest and principal component both for the entire loan amount for the entire loan period. So why is the double charging of interest?? Please reply ASAP

Thanks