When you take out a home loan or personal loan, you’ll be given a full minimum monthly repayment amount (MMR) which is made up of two parts - principal (the loan amount) and interest.
Each month on the due date, you’ll see a transaction with the narration ‘Debit Interest’ appear on your loan account, which is the first part of your MMR.
The reason that the principal amount doesn’t show as a transaction is because it’s not a charge to your loan. The interest amount is being deducted from the repayment amount, whereas the principal portion is being reduced from the remaining limit on your loan – which you’ll see has decreased the business day following your due date.
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