SBI MaxGain related Queries

POSTED BY Bob Terreins ON March 25, 2013 7:18 pm COMMENTS (5)

Hi, I’m planning on taking a home loan of 17L with SBI for 10 yrs(so the rate works out to 9.95%). I am going for the MAXGain feature too.

Now the question is that, after one month of the transaction, it might happen that i have one lakh surplus fund leftover, so the question is that should i use it to prepay the loan  or park it in maxgain for future use. I do understand how maxgain works but what i am asking is that this early into the loan which would be better….prepaying the loan and as a result lesseining the duration or parking it in maxgain for future use….which will be benificial, financially speaking…

Also, I tried searching for a calculator to find out how much duration will be lessened if i prepay….could not find anything proper….please suggest some if any of you knows any

And also, i’ve heard that SBI does not give home loans for buildings older than 15yrs…..is that true ?? (I had forgotten to ask this when i had gone for inquiry)

5 replies on this article “SBI MaxGain related Queries”

  1. Chandra Airyangar says:
    March 26, 2013 at 9:35 pm

    While we save on interest component when we park our surplus fund and the loan gets over soon. But we loose tax benefits which is admissible for interest on home loan, is it not? Which is beneficial?

    Reply
    1. Ashal Jauhari says:
      March 27, 2013 at 3:57 am

      Dear Chandra, the income tax benefit ‘ll come down over the years in any case as the loan ‘ll be repaid. there is more to it, most people are not that much inclined to carry on with the loan just for sake of tax saving. To park or not to park ‘ll be a personal call.

      Thanks

      Ashal

      Reply
  2. Ashal Jauhari says:
    March 26, 2013 at 9:12 pm

    Dear Bob Terreins, I have not prepared any tool for myself. You can prepare yours’ own by using loan amortization schedule received from the bank & comparing the interest outgo in actual.

    Thanks

    Ashal

    Reply
  3. Ashal Jauhari says:
    March 26, 2013 at 5:08 am

    Dear Bob, parking 1L Rs. from your example in Max Gain ‘ll be good idea as the interest outgo ‘ll be lower & you have liquidity also for your own money.

    Regarding the age of the building in question, if everything is in order, based upon the site inspection by it’s technical team, SBI may provide loan to you as you are asking for 10Y term.

    Thanks

    Ashal

    Reply
    1. Bob Terreins says:
      March 26, 2013 at 7:54 pm

      Thanks ashal….also do you have any tools that can help me better understand the calculations of maxgain ??

      Reply

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