Dear All,
I have booked a under construction house worth 45 L wherein i am in process of availing a loan of Rs 30 L from SBI. The house will be constructed max in 2 yrs as per builders commitment.
As of now, i have to just pay 10% of amount on each stage of completion.(4.5 L + service tax).
- Should i go for SBI Maxgain or SBI normal home loan ( I have some funds available). Also i understand that SBI Maxgain benefits i.e. OD facility is available only after disbursement of final amount? In case i do not utilise full 30 L and only take say around 25 L then SBI Maxgain account facility will not be be issued to me? Am i correct?
- Considering the tax benefits will be available only for possession i.e. 2 yrs, how best i can arrange my funding? I have some surplus funds which i can use for 2-3 instalments or should i go right now for SBI Maxgain/ normal home loan?
- In case i opt for any loan, whether i should avail moratorium period or directly start paying EMI?
- Are there any additional annual charges for operating SBI maxgain account as compared to normal home loan?
- Are the interest rates different for Maxgain vs normal home loan?
- Please suggest considering both financial as well as tax angles on the above queries?
- What can be suggestive general insurance premium for 30 L loan of 10 yrs which SBI compels us to take?
- In SBI Rinn Raksha, what is meant by PPT? What is the time will we are covered under insurance? In case we repay loan early whether the benefit is available to us till the period of insurance we opted for?
Thanks,
Amit
Dear Mr. Chokani,
Below are the answers to your queries;
•You would be only able to park the surplus however will be unable to withdraw before the final disbursement.
•If there is an availability of surplus funds then we would suggest that you use the same and reduce the loan amount by that extent
•Opt for the moratorium period or the EMI directly depending on the position of your cash flows.
•It would be in your best interest to approach the bank for details of any additional fees, the difference in interest rate of the SBI Maxgain loan and the SBI RiNn Raksha
Regards,
Credexpert
Dear Amit, trying to answer your queries.
Should i go for SBI Maxgain or SBI normal home loan ( I have some funds available). Also i understand that SBI Maxgain benefits i.e. OD facility is available only after disbursement of final amount? In case i do not utilise full 30 L and only take say around 25 L then SBI Maxgain account facility will not be be issued to me? Am i correct?
Dear Amit, if you do not need that surplus amount in between before final disbursal, MG is still beneficial as you ‘ll be able to save on interest outgo even during pre EMI phase.
Considering the tax benefits will be available only for possession i.e. 2 yrs, how best i can arrange my funding? I have some surplus funds which i can use for 2-3 instalments or should i go right now for SBI Maxgain/ normal home loan?
You mean to say, you ‘ll pay from your own pocket as of now & ‘ll avail Loan later on, well you can do so.
In case i opt for any loan, whether i should avail moratorium period or directly start paying EMI?
Are there any additional annual charges for operating SBI maxgain account as compared to normal home loan?
Moratorium period means you ‘ll be paying only interest during this Mort. period so over all interest outgo ‘ll be higher for you over the period of loan. So my take ‘ll be to go for full EMI from day one, if your cashflow permits.
Are the interest rates different for Maxgain vs normal home loan?
No, as on date there is no difference in the ROI of 2 types of loans.
Please suggest considering both financial as well as tax angles on the above queries?
Financial angle already discussed, what’s the Tax angle that you want to understand, please clarify.
What can be suggestive general insurance premium for 30 L loan of 10 yrs which SBI compels us to take?
The prem. for General insurance is near identical from all insurers, so it does not matter from you have purchased it.
In SBI Rinn Raksha, what is meant by PPT? What is the time will we are covered under insurance? In case we repay loan early whether the benefit is available to us till the period of insurance we opted for?
PPT stands for Prem. Payment Term. Normally it’s 5 years for Rin Raksha. No, the moment, the loan is repaid in full, the cover ceases to exist.
Thanks
Ashal
Dear Ashal,
I do not want to take more loan.. I can manage those additional expenses. Based on the above facts please suggest point by point reply to my queries asked in the first question?
Thanks,
Amit
Dear Amit, then why are you not keeping some amount in your pocket for these post purchase expenses? You should reduce your own share in the house purchase & increase the loan amount.
Thanks
Ashal
Dear Amit, the 45L Rs. is the final cost in all aspect or over head expenses are extra & what about the additional costs for furnishing the house later on when you move in?
Thanks
Ashal
It will be in the tune of around 3-4 lakhs..
EMI will be around 38k, income around 80k, exp around 20k, 4 ppl family, no loan. I have around 20 L liquid invt.. Hence availing 30 l loan..
Dear Amit, For a 45L Rs. house, & a loan of 30L Rs. what ‘l be your EMI & what’s your income, expenses, family size, othr loan liabilities? After house purchase, what ‘ll be the situation of your assets & investments? May I know?
thanks
Ashal