Whenever you avail a loan, you have to pay an interest on it. That interest is applied at the end of the month. If you get the loan in the middle of the month or it closes before the end of the month, in that case, you do not need to pay the loan for the whole month. This is called part period interest.
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For example, if you have received a loan on the 18th date of any month, you will not have to pay the interest on the first 17 days. Similarly, if you closed your loan on the 7th date of the month, in that case you will have to pay interest for seven days only. So, when you are paying interest on any loan for a few days of a month, it is called part period interest.
Read more: What is Part Period Interest in SBI Home LoanYour Feedback Matters! How was this Answer?
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What is part period interest?
Rachna
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3 Year
2021-09-22T10:29:04+00:00 2021-09-22T21:39:55+00:00Comment
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