Why is Double interest charged on my SBI MaxGain account?

POSTED BY rajeshaggy ON January 6, 2014 5:45 pm ONE COMMENT

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

One reply on this article “Why is Double interest charged on my SBI MaxGain account?”

  1. ashalanshu says:

    Dear Rajesh, in MG account the actual interest is charged only on the last day of the month. so you are not paying twice.

    Thanks

    Ashal

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