I have very very limited knowledge of banking and finance, so this question may sound very foolish, but please help!
I have taken SBI maxgain home loan 2 years ago. As of today, my OD account is showing interest rate of 9.3% and loan account is showing 8.7% interest rate. 1 year ago, OD account was also at 8.7%, but now it has increased.
- What does this mean exactly? How does it impact me?
- What is the difference between OD account and loan account?
- How does the variation in interest rates of above 2 accounts impact my loan? And also how does it impact the surplus amount which I have already deposited in my OD account?
- My loan amount is about 45lakhs out of which about 15 lakh is yet to disbursed to builder. Loan tenure is 7 years.
- All disbursements to builder will be done sometime in this year and I will get possession by Dec 2019.
- My OD account balance is showing as – (minus) Rs 10lakh and loan account balance is about Rs 2000.
- I have already deposited about 9lakh in my OD account which I had in surplus.
I am not sure why two interest rates for your home loan. Please cross check with the bank in this regard.
The OD account is the one which has the home loan. The other account is for the “insurance scheme” for home loan called SBI Suraksha. So its the 9.3% which is relevant to the actual loan.
May I know why they created that another account “INSURANCE SCHEME”?
I don’t know exactly. They said we need to take insurance along with the home loan. Anyway insurance EMI is very less about ₹450 per month so I didn’t bother much.
They are clever. It is not mandatory that you must buy under them. They simply SOLD you to meet their own target.
Yes I know. Anyway, can you help me with my original question ?