Need A Financial Product Forums Loans Does additional funds in OD account reduces loan tenure

This topic contains 1 reply, has 2 voices, and was last updated by  Bhavini Ram 2 years, 4 months ago.

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    Bhavini Ram

    I have an outstanding home loan from SBI max gain for 38 lakhs. I have started paying EMIs since last 8 months. If I park Rs. 25 lakhs in OD account, then I guess a major part of the loan will be covered by this amount. Will it tend to reduce my loan tenure?


    Ashu Garg

    Additional funds if parked in OD account will reduce the amount of EMI and will not reduce your outstanding principal amount. The interest which you will save on will be credited to your OD account and due to this reason your loan tenure will remain intact.

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