March 1, 2011 3:26 pm
Can you direct me to some good site which can give me competitive home loan rates in india.
Site which doesn’t pimp a particular bank( ex : bankbazaar pimping HDFC)
Dear Sunny, I’m giving you an example to understand it better.
Say you took a home loan of 20L Rs. under SBI Max Gain. Now you have 1L Rs. surplus. You just simply put that amount in the associated OD account. Now for interest calculation, your outstanding home loan ‘ll be taken as 20 (actual home loan outstanding amount) -1 (the surplus amount parked in the OD account) = 19L Rs. & you ‘ll be charged interest only on the adjusted amount. Now after a month, you require 25K Rs. the new adjusted amount ‘ll be actual outstanding – the remaining 75K surplus amount.
The Smart home loan as suggested by dear Dominic Prakash is the similar one but it has a very high interest rate as compare to SBI.
To maximize the benefit from this SBI Maxgain, It’s advisable to pay regular EMI from an SBI saving account.
to get online info, you may check SBI website – http://www.statebankofindia.com
Thanks for the information. I have already taken SBI Maxgain loan for INT 2512000. SInce 2.5 years I am just paying the EMI since I did not have surplus savings to park in. Now I have surplus of 10k to park in everymonth. How this will benefit me. And I see some money like Rs 5000 odd is available for me withdraw till now after only I paid the designated EMI of Rs 25503. Can you elaborate and explain how this is working and what is the best plan to reduce the home loan soon. Is it advisable to park in every month some amount or a lumpsum amount yearly to wards the principal. Is there any option to pay towards the principal directly without having the facility to withdraw in Maxgain loan? If yes how to we repay it?
Thanks for you information in advance.
Many of these website might not give you full details. Now-a-days you need to discuss with the bank authorities. You can strike a deal. They have various options and discounts. For example if you work for XYZ company you might get 0.5%less.
I you are looking for prepayment type of loan then I suggest you to consider “Smart Loans”. I think Std Charted, HSBC, CIti and ICICI have got these loans. Other than HSBC i have not seen anyone pushes for this type of loan. The specialty of this loan is your saving will also earn the same interest rate.You can control the interest part of your EMI.
You can put all your additional money in this account and your interest will go down but you can also use the money whenever you want like a savings account. If you have saved more money you can make this loan as interest free loan.
I didn’t get that. Does that mean if I park some amount in the SBI loan account i will get interest paid on the balance?
How does that make it any better than any other bank account? If you can provide the detail explanation/link ?
Dear Sunny, The processing fee for SBI is a fixed one say 3K Rs. for loan upto Rs. 10L. which come around 0.3% on the higher limit of loan amount. 5K for loans upto 20L & 7K for loan upto 30L. 10K for loans above 30L.
Regarding the prepayment penalty – you need not to worry for the same under Max Gain home loan of SBI. Bcoz you are prepaying the loan without prepaying it. As it’s an overdraft kind home loan, where you may park your surplus amounts to bring down your interest burden & may use the surplus funds as & when you require to do so.
Thnaks but Ashal i guess we have to check other factor as well. Like Processing fees, Pre payment penalty etc.
Like SBI has pre payment penalty. and Many bank doesn’t..hence I wanted to compare.
Dear Sunny, Instead of wandering here & there for Interest rates, I’ll ask you to go for SBI Max Gain product. Initially you may face difficulties while getting loan (due to reason that it’s SBI) but once your loan is disbursed, your actual benefit of transacting with SBI starts. The current ROI is around 8.75% for 1st year & 9.5% for 2nd & 3rd Year. After that it ‘ll be market linked rate but definitely below other players.
I think last pages of outlook money contains this info.
See the latest issue.
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