Question

What is part period interest in sbi education loan?

Answer 1

So the period from 21st to end of month day 31st .i.e. 11 days Interest charged is PART PERIOD INTT. Part period interest is interest charged by the bank from date of disbursement of loan to the day the EMI payment starts.

Answer 2

Answer:

Interest is paid or received at a predefined interval of time. A situation in which one pays or receives interest at a time different from the predefined interval, is known as part period interest.

It is to be noted that SBI follows a daily balance policy unlike the monthly balance policy followed by all other banks.