SBI Maxgain saved interest is not added to my Available Balance?

India Home Loan
1

Hi Anil,

Thanks for the detailed article.
I am holding SBI Maxgain account. Taken home loan of Rs. 25lac and current ROI is 8.65%.

I deposited Rs. 47k on 9th Feb in my OD account and could see a reduction of around Rs. 1800/- in my interest calculation. However, I was expecting this surplus amount to be added to my Available Balance but I don’t see it.
I notice around 5k reduced in drawing power and available balance increased by around 5k again. Not able to understand the calculation.

Providing details below for your help:

As of 8th Feb, 2018
Book Balance -20,82,385.00 (interest is calculated on this balance. Drawing power - available balance)
Available Balance 3,10,763.00 (Deposited Rs. 47000/- (25k+22k to reduce interest on 9th Feb)
Limit 23,93,148.00 (Outstanding principal loan)
Uncleared balance 0.00
Drawing Power 23,93,148.00 (Outstanding principal loan)

As of 9th march, 2018 (Post deposit of Rs. 47000/ on 9th feb in the OD account)
Book Balance -20,72,852.00 (interest is calculated on this balance. Drawing power - available balance)
Available Balance 3,15,956.00
Limit 23,88,808.00 (Outstanding principal loan)
Uncleared balance 0.00
Drawing Power 23,88,808.00 (Outstanding principal loan)

Also, listing down transactions as per OD account for last 3 months:

28-Feb-2018 (28-Feb-2018) DEBIT INTEREST 13,852.00
19-Feb-2018 (19-Feb-2018) BULK POSTING BY SALARY 23,385.00
09-Feb-2018 (09-Feb-2018) BY TRANSFER INB Deposit / Investment 22,000.00
09-Feb-2018 (09-Feb-2018) BY TRANSFER INB Deposit / Investment 25,000.00
31-Jan-2018 (31-Jan-2018) DEBIT INTEREST 15,612.00
16-Jan-2018 (16-Jan-2018) BULK POSTING BY SALARY 23,385.00
31-Dec-2017 (31-Dec-2017) DEBIT INTEREST 15,669.00
16-Dec-2017 (16-Dec-2017) BULK POSTING BY SALARY 23,385.00

Thanks,
Tarun

2

Please understand the INTEREST is NOT added to your available balance.
It is just the saving that you are doing by NOT paying that interest.

3

Same issue is with me, I think question is simple . EMI has 2 component one is principal portion and one is intrest portion, let us take an example for the current month intrest amount as per EMI is 10K but since you parked the amount in OD account it got charged only 3K, then in that case saving of 7K should be added to available balance. i checkedfor my account and its not happening !!

6

Very valid point. I am also facing similar issue.
I undrestand I save interest. The EMI is cut in full, 50K per month.

e.g I took a Home loan statement for last year.
Total EMI Paid: 600000
Towards Principal 266950
Towards Interest 143770
Hence Total Repayment 410720

Where is the rest of the money 189280 (600000-410720)? !!

Then I went throught entire statement, I have similar issues for all previous years.
So where is the money saved in interest?