In 2009, I applied for home loan for Rs. 17 lakhs for 20 years from SBI. The same was disbursed. Since then I am paying EMI of Rs. 17,000 without any default. Today when I checked my drawing power, it has reduced to Rs. 9, 50,000. I want to know the reason for it. Please help
It has happened because over these years you must have repaid Rs. 7, 50,000 towards your loan. Drawing power is the amount of outstanding loan that you got to repay. You keep on repaying your loan and the drawing power will continue to decline.