What is interest accrued till date at time of home loan closure?

Hi Anil,

Have a doubt regarding loan closure - point 3 - “Pay the remaining balance in your account (+ the interest accrued till date)”

What is this interest accrued till date that we have to pay at the time of loan closure. Won’t it be covered under the debit interest that is deducted every month from the OD

Hi,

The interest accrued till date means the date when you actually close the loan.
For e.g. lets assume that your monthly interest is due on 1st of every month and bank debits it your account the same day.
Now, if you are going for closure of your loan on 10th day of the month, the interest from current month’s 1st to 10th would not have been debited yet.

So, while closing the loan on 10th, bank would calculate interest for 10 days + the current outstanding loan. This will the amount you will pay and pay-off completely.

Does that answer your question?

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