[Resolved]  Axis Bank — Pls Help me out :--My Home loan outstanding principal component increases every month instead of decrease

I have availed a home loan from Axis Bank on march 20 , 2006

the principal amount i have taken was Rs. 16,50,000 and floating rate mentioned in Loan saction letter was : 8.00%

My EMI per month is 13,802 and i have payed 21 instalments which comes around Rs. 2,89,842 from May 2006 till Jan 2008.
and they say the pricipal outstanding as of today as of today as per Axis bank Statement is Rs. 16,38,961. So the principal amount which reduced from my outstanding was just Rs.11,039 from 2,89,842(tatal amount paid till date). How come it is possible???

The statement which i received from Axis bank says

what ever the intesert portion they calculate on monthly basis will get added up to pricipal amount every month and whatever the EMI paid will get deducted from Total amount{ Princial + interest portion added] every month and if any Equity mortgage charges to be deducted, that is also getting added up to my outstanding pricipal. So that every month my outstanding principal getting increased.

I contacted them and enquired. They said this is how they do.

PLs somebody help me out as i am struggling with Axis Bank service and i will not be able to pay EMI if it continues like this
since i am a salaried person.


PLS HELP ME OUT