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, 11 months ago.

Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • #47165

    Bhavini Ram
    Member

    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?

    #47166

    Ashu Garg
    Member

    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.

Viewing 2 posts - 1 through 2 (of 2 total)

You must be logged in to reply to this topic.

About Us

Simplypaisa, a web initiative by Elite Wealth Advisors Ltd, has the primary objective to help readers make smart financing decisions. What is smart finance? How to make smart financing decisions to procure assets or to meet one’s personal needs? Information is critical to make smart financing decisions: be it to purchase your dream house, a car, to start a business or to enable an entrepreneur to meet his/her working capital needs.Read More...

Subscribe to Blog via Email

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

GET IN TOUCH WITH US

Elite Wealth Advisors Ltd.
S-8, DDA Shopping Complex,
Near Jeevan Anmol Hospital,
Mayur Vihar Phase-1, Delhi-110091.
Phone No: 011-42445800
Email : connect@simplypaisa.com