New home loan plan

POSTED BY Anshul Gupta ON March 13, 2013 6:01 pm ONE COMMENT

Hi All,

I have come across some new kind of home loan schemes offerred by HSBC and Standard Chartered. In this, they create a new current account linked with the Home loan principal.

Interest is charged only on the amount net of principal and current account balance. This is calculated on daily reducing basis. Interest is 0.5% higher than the plans which don’t offer this feature.

Has anybody availed loan under such scheme ? What are the pros & cons ?

Regards,

One reply on this article “New home loan plan”

  1. Ashal Jauhari says:
    March 13, 2013 at 8:16 pm

    Dear Anshul, this scheme is not new & is offered by several banks in India. Apart from HSBC & S&C, there are CITI, SBI & IDBI in the list who are offering this product.

    Out of the above, SBI’s Max Gain is the best product for following reasons –

    1. Same interest rate as normal home loan (no loading unlike other banks)
    2. Pan India reach
    3. So much info is available all over (even in this forum the largest discussion is on Max Gain)

    If you do have regular surplus generating capacity, such loans are better than normal ones.

    Thanks

    Ashal

    Reply

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