I am planning for purchase new car. I have taken a home loan from the same bank SBI and planning to take auto from the same branch. I have taken a home loan under maxgain scheme with OD account and looking for car loan under with OD account as well.

I inquired at the SBI branch and scheme still exists for OD account for car loan under 10.75% as Rate of Interest. As I am already having SBI maxgain with teaser for 3 years, Which means my interest rate is 9% fixed for 3 years and after completion of 3rd year, it would be market prevailing rate (which is currently 10.05%). I am having around 2 L fund in my maxgain account which I deposited sometime back.

Is it good to take out that amount for Payment for Car price and reduce my Car loan by 2 L? As Car loans are more costlier, would this be really good idea to go for less loan and use the extra fund parked in maxgain account?

Please suggest.