Loans/Staff OD Interest Calculator
Staff OD Interest Calculator
Interest on your PNB staff Clean Overdraft, using the daily product method — the actual RBI-aligned method banks use for fluctuating-balance accounts, not a flat average-balance shortcut.
Your OD account
Rate: 6.5% p.a., monthly compounded
Interest for this period
₹2,671
What this calculates
Interest on your Clean OD facility, computed on your actual day-by-day outstanding balance — never on the full sanctioned limit. This calculator uses a single average balance across your period as a simplification; if your balance actually fluctuated day to day (salary credit, then withdrawals), the real interest will differ slightly from this estimate.
Formula
Sum of Daily Products = Average Balance × Number of Days. Interest = Sum of Daily Products × Annual Rate ÷ (100 × 365).
Worked example
₹5,00,000 average balance over 30 days at 6.50% p.a.: Sum of Daily Products = ₹1,50,00,000. Interest = ₹2,671 for the period.
FAQs
Why does it matter that interest is on the daily balance, not the limit?
If you have an ₹8 lakh sanctioned OD limit but only draw ₹2 lakh, you only pay interest on the ₹2 lakh actually outstanding each day — not the full ₹8 lakh limit. Interest scales with what you actually use.
What if my balance changed partway through the month?
This calculator uses one average figure for the whole period. For a precise number, you’d sum the actual daily balance from your statement day by day — this tool is for quick planning, not a substitute for your statement.
References
PNB’s current Scheme for Grant of Clean Overdraft/Demand Loan Facility to Staff Members.