**Thread Starter**#16

Ok, I will explain you again.

Loan taken : Rs.5,00,000.

Interest Rate : 11.25 %

EMI : 8675 per month

Now you deposit Rs.4,00,000 in you OD account, so now EMI would be calculated as against 1,00,000 that is pending. (depositing 4,00,000 in OD account is same as pre paying loan amount, but in OD account you can withdraw the money afterwards as well)

Principal left : Rs, 1,00,000

Interest Rate : 11.25 %

EMI : 1735 per month.

Now all of sudden you have some emergency need of Rs.2,00,000, so you withdraw it from the OD account. so now calculation goes like.

Principal left : Rs, 3,00,000

Interest Rate : 11.25 %

EMI : 5205 per month.

EMI calculation in OD loan is done on daily basis. so when you either deposit or withdraw amount from OD account, from same day your EMI is recalculated on the basis of principal left.

Hope this helps. Let me know if you still need more information.