Hi Basu, First of all – Many thanks for this forum. Helps a lot to learn and share information.
I am going to take home loan of 50 Lakhs to buy a new property in Pune(my second property).
I already have a property in Nagpur for which home loan was taken and successfully closed.
Even after paying the EMI, I have the capacity to pay extra 10K INR every month and I want to use it.
Ques 1: Shall I opt for SBI Maxgain or Normal Home Loan ? The major drawback I can see with Maxgain is that it does not allow me to reduce the tenure by pre-paying the amount.
Ques 2: Maxgain allows only 2 pre-payment… Will the tenure be reduced or EMI will be reduced if I prepay ?
Ques 3: Does Maxgain Overdraft facility also gives FD interest to the amount parked under OD account ? Ex: If the home loan interest is 9.5 and FD interest rate is 6 %, do I get benefit of 15.5 % technically (9.5 % interest not calculated on parked amount & get 6 % interest for FD in OD account)
Ques 4: Maxgain Interest rate for Male is 9.5 where as same for Normal Loan is 9.4. For a tenure of 10 or 15 years, is it beneficial to opt for Maxgain on 0.1 % extra interest ? Will I still get edge over normal loan ? I\’m super confused. Would deeply appreciate your help in this.
- Opt for MaxGain only if you are expecting some surplus cash in middle and use it to park in OD. Otherwise, normal loan is enough.
- You can check with Corporation Bank’s same product, where there is no such restriction.
- They will not pay you the interest on the money parked. But you save the interest from your EMI part. So SAVING is 9.5% but it is not earning. So no tax on this.
- o.1% matters to you? If yes,then go otherwise be silent.