sbi max gain loan vs direct home purchase

POSTED BY shailesh pai ON April 13, 2013 6:31 pm ONE COMMENT

Hi all,

I am 28 married , planning to buy a house worth 30 lacs which i will get the possession in 30 months from now . i.e in oct 2016. Reputation of builder and the possession dates are not at stake , in the sense that its a well known builder from mangalore.  AND SO CURRENTLY FOR THE SAKE OF SIMPLICITY LETS NOT TAKE THESE TRIVIAL ISSUES INTO CONSIDERATION FOR DISCUSSION.Purely from a financial point of view kindly let me know which of the following methods will be of maximum advantage and beneficial – considering other various aspects including income tax. downpayment of 6 lacs will be done , i have a surplus of around 80,000 per month ( from both of my and spouse income )

1. take a home loan from sbi max gain of 24 lacs / 10 years term joint loan with my spouse – i want to ask few doubts regarding this type of home loan –

        a. If the possession of the house is in oct 2016 – when will the emi start?

            ( regular emi of approx 35000 is it from oct 2016 ? )

        b. Can i make a payment of say 80,000 every month for 30 months till possession                     from this month onwards , once loan procedure is sanctioned even before loan                     disbursement or is this not  allowed and there is some restrictions regarding such                 payment. What is such type of payment called – pre emi , full emi or tranche emi or             any other name ?

       c. If point b works out , by the end of possession , do  i need to pay any interest on               sanctioned loan ? or how much interest approx i would have to pay

       d. Can i claim tax benefit in such cases , atleast principal repaid benefit

2.  OR is it beneficial to pay 80,000 per month for 30 months ? The only caveat here is in case of loss of income of my spouse due to us planning for a kid sometime in next 30 months , i wont be able to spare 80000 surplus towards this goal and hence considering for sbi max gain

 

3. In case point b  is valid for payment of 80000 per month right from this month onwards , once sbi maxgain is sanctioned – How about taking a loan of just 8 lacs as against the full amount of 24 lacs to circumvent the problem of loss of income for approx 10 months due to the possible future arrival of kid ( 80000 * 10 )

One reply on this article “sbi max gain loan vs direct home purchase”

  1. Dear Shailesh, The highlighted point b is possible. Actually SBI ‘ll disburse the loan amount only as per CLP – contruction linked payment plan. so there may be an initial disbursal say 4-5L Rs. & after that for few months, there ‘ll not be any disbursal till the consturction is completed in certain %age as per SBi standard. So 4-5L Rs. means your 5-6 months parking of that amount you intend to which is 80K mly. After that you can still continue with your 80K parking into Max Gain or stop it if the amount is equal to your disbursed part. Once the 2nd installment is disbursed, you can again put into the saved amount & continue with 80K mly.

    As you are opting for 10Y term only, the SBI may accept full EMI which ‘ll be below 80K Rs. from day one. Yes the loan repayment by way of regular EMi is available for tax benefit for section 80c principal repayment but interest related section 24(b) benefit ‘ll be available only after possession of your house.

    thanks

    Ashal

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