While property prices over the past few years have not seen too much of an increase (thanks to the huge bubble and oversupply), this seems to be a good opportunity for genuine home buyers to hunt for their dream home. So you are one of them and have saved a good amount to pay the upfront down payment of around 10-20% and now looking for a home loan? While interest rate and overall trust play a huge role in selecting your bank for taking a home loan, there are some other factors like processing fees, time taken for disbursal, pre closure charges, maximum amount bank is ready to sanction and maybe few more depending on the personal preferences.
In today’s competitive market the interest rates are more or less same and once the documents are clear, the disbursement is also quick. Let us see another feature which you should consider while taking a home loan i.e. the OD Maxgain Loan account which is offered by SBI and its associate banks. Most of you must have heard about this but are not sure if this is beneficial for you in any way. Let us see how this account works.
First of all the Maxgain loan account is just like any other loan account wherein interest will be changed on a monthly basis on the outstanding amount. With Maxgain account, you can park your surplus cash into this account and this extra amount you pay will be considered as principal repaid thus saving you interest on that amount on a monthly basis. To elaborate with an example let us consider a loan of 50 lakh @ 8% interest for tenure of 20 years. This translates to an EMI of Rs 41822 with below repayment schedule for the first six months.
As you can see the interest component in the beginning would be maximum and this will keep on reducing with subsequent EMI payments. Now if you have an extra sum of about 1 lakh available with you , just put that money into your Maxgain loan account and that amount will be reduced from the Balance column for the next monthly interest calculation.This would save you around Rs 660 per month on interest! And guess what , this extra sum is completely liquid money which you can withdraw anytime using debit card linked to your loan account. Below are some of the key points.
- The maxgain account can be opted only at the time of loan account opening
- Extra sum parked in the account can be withdrawn only after the loan is completely disbursed
- You can put in the money for a day, month or any other duration. So there is no min or max lock in period for that extra amount you pay
- You can withdraw the amount conveniently using debit card or netbanking