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

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  • September 1, 2014 at 7:05 pm #47165
    Sameer Kapoor
    Participant

    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?

    September 5, 2014 at 9:43 pm #47166
    Sameer Kapoor
    Participant

    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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