What is the basis of loan interest calculation?
Question asked by Mr. Sandeep Bhat:
Hi, I had earlier availed a loan from LIC Housing Finance and in addition to EMI’s I have also been regularly paying additional amounts for speedy closure of the loan.
My problem is that in their statements LIC still shows interest contributions on the EMI based expected Loan Outstanding without considering reduction on account of additional prepayments.
I am presently outside India and am not able to discuss the issue directly with them. My wife however did visit them but wasn’t able to get any resolution. The difference is building up to be considerable and as such need your guidance.
Regards,
Sandeep Bhat
My problem is that in their statements LIC still shows interest contributions on the EMI based expected Loan Outstanding without considering reduction on account of additional prepayments.
I am presently outside India and am not able to discuss the issue directly with them. My wife however did visit them but wasn’t able to get any resolution. The difference is building up to be considerable and as such need your guidance.
Regards,
Sandeep Bhat
Vatsala Answers:
A detailed understanding of calculating reducing loan balance is required. In the absence of this clarity, it is not possible to intervene. Vatsala
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