Hi

I have a SBI MG home loan that I got for my home while it was under construction. Now, after 15 months I got the loan and paying full EMI, the construction of the home is complete ready for possession.

I have been reading a lot about SBI MG and its advantages. I understand how it reduces the interest outgo if you can park some surplus. I also understand the MG account can be used as a liquidity and the money can be withdrawn any time for any kind of emergency (after final disbursement).

What I did not understand so far is,

If the total number of months (say 240) or the EMI amount (40,000) are not going to change by having a surplus in OD account, then what is the real advantage of reducing the interest outgo. For E.g. If I take a loan of 30lakhs for 20 years with 10% interest, the total amount I will end up paying after the loan tenure is about 65 lakhs, and this 65 lakhs is not going to change irrespective of it is a SBI Max Gain or regular home loan. At least, this is what I have understood. Is my understanding correct? If so, then what is the real benefit of SBI maxgain in terms of earlier repayment or earlier loan closure?