Bank Home Loan Question?

the only way to pay down the principle is to pay more than the monthly payment. the rest goes to principle.

try this - an example is shown. n=times per year, t=total years

Payment =PV(i/n)/[1 - [[1 /1+ i/n]]^t*n]

P=100000(.06/12)/[1-[[1/1+0.06/12]^15*12]]

100000(.005)/[1-[[.99502]^180]]

As we know that EMI ic a type of monthly installment meaning that if you are regularly paying the amount of 18000/- every month then your loan will be covered in exact 10 years. I think that the bank is offering the extra interest rates because of the fluctuating market rates. So firstly you have to consult with the bank authorities regarding your problems and queries. Secondly to lower your EMI also you have to inspect with the bank only.

emi means equated monthly instalment. It means if you pay 18000/- every month,for 10 years the loan gets closed,assumin that int.rate is not changed and you paid the emi regularly on due dates,

As per your repayment plan you would be paying a total amount of Rs.2160000/-(18000*120)

you have paid 1080000/- That means you have to pay a balance of 1080000/- But you are to pay 1250000/- as per the bank statement. The exess of 170000/- is due to flucuation in interesr rates as you have opted for fluctuating rate of interest. How ever you can ask the bank for the details of rates of int.charged for your account. You can not get the emi lowered, once it is fixed. If you pay more than your emi,your loan gets closed early.

In the initial period nearly 80% of the EMI amount will go towards interest and only 10% will go towards principal.The same will be get adjusted gradually. If you want to reduce the interest burden and to reduce the principal pl., arrange payment of the loan in lump sum whenever you get money. As there is no pre payment charges the interest burden will be reduced and also the principal.