Introduction to Benefit of Interest

Customers availing of a home loan can link one or more savings accounts as an offset account to the home loan so that the balance of the savings account(s) can be offset with the outstanding principal of the loan amount. The interest will be calculated only on the offset balance. In this way, the customer can save interest on the loan.

This functionality is used to display the benefit of interest, for example, the difference between the actual interest calculated on the outstanding principal and the interest calculated with the offset balance at the arrangement level and also in various channels like internet and mobile banking, in the account statement.

For calculating the benefit of interest (the difference between the actual outstanding principal and the offset balance), a new property (INFOINT) is created for the Interest property class.

The BENINT.INTEREST.DETAILS enquiry is provided to display the interest benefitted by the customer and the user can input a specific period to find out the overall interest benefitted.