How to calculate interest on overdraft

Save Share

This query is : Resolved

Saurabh jawa (Querist)

17 May 2015 I wanna take overdraft from a recognised govt bank of india... but not able to undrstand how interest is been calculated on overdraft,1thing i know interest will be charged only when i used that overdraft money for my business....Thinking to take overdraft against "FD" or "HOUSEPAPERS".... PLZ HELP ME TO UNDRSTAND HOW INTRST IS BEEN CALCULATED WITH EXAMPLES... n will interest will be paid monthly?

Saurabh jawa

Saurabh jawa (Querist)

17 May 2015 How interest is calculated on overdraft

Yogesh Goel

Yogesh Goel (Expert)

18 May 2015 Interest will be calculated on debit balance in your account at applicable rate and shall be debited to your account on last day of month. Example can be considered on an excel sheet..simply put some date in excel sheet and calculate running balance and on every date change calculate no. Of days debit balance was there. Then calculate interest on running balance for those no of days. In the last of month sum up the interest amount.

Saurabh jawa

Saurabh jawa (Querist)

21 May 2015 Not able to understand at all.... can any1 give me some example.... how to calculate it

Saurabh jawa

Saurabh jawa (Querist)

21 May 2015 Giving u an example plz solve it so tht i can understand... i have taken od limit of 5lac,from which i use 3lac for exact 1month n my rate of interest is 9%.... tel me how much interest i have to pay for using 3lac for 30days at 9%intrst...

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now