Hi,

I have a SBI Home Loan (Max gain). I have some spare amount (say 1 lakh) and want to pay it off permanently to the bank and do not want to place it in my OD account.  I want to do this so that I can cover Section 80C with home loan principal. But, the officer in RACPC tells that for the surplus amount deposited to be considered as Principal, I will need to reduce the drawing power (DP). Agreed.

But, he also adds that you can reduce the drawing power only “twice” during the entire tenure of the loan.

Is this true? Does that mean, there is no way that I can increase my principal by extra payment and take the section 80C benefit?

Please suggest.

Regards,

Amit