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POSTED BY ON October 6, 2014 5:16 pm COMMENTS (6)
Hi Manish,
I had taken a standard home loan of 25L from SBI and in the middle of its tenure I shifted to MaxGain on your suggestion in the forum. I should say it benefited me a lot. Thanks for that.
Now i have enough funds in the OD account to close out the home loan, but that means i will lose the liquidity.
So should i close out this loan, or remove some funds and invest somewhere else?
Any advice/view will help me a lot
Note: The house is let-out on rent
Regards
Rij
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Hello sir
I had taken a housing loan of 3O lakhs under SBI Max loan.
Over a period of years I deposited whenever I had access money.Today my account reads as follows
1)Available Balance- 57,51,332
2)Book Balance 34,64,589
3)Drawing Power 22,86,743.
Pls advice if I have already paid the loan amount.
I am in service and avail deduction of 2 Lakhs on principal amount.
Should I continue with this account or close the account and deposit Excess money in FD or some other avenues
It would be better to close it actually ..
Just depositing the entire outstanding principal amount in MaxGain account will not close it. It will show a zero or positive credit balance and the EMI transfer will also continue. The benefit will be that no interest will be charged for the duration for which the credit balance is positive.
@Ssnaik84
I don’t understand why should a person not a close a loan because he won’t get another at a lower rate. Could you kindly explain?
If you pay the entire outstanding principal amount of SBI MaxGain OD account, it will be automatically get closed. Currently it is charging interest of 10.10% per annum. So, dont close it. You can’t get any loan at such low interest rate in near future. You can invest money somewhere else like in Share Market, Mutual Funds, NCDs.
Example: Buy good scripts like L&T, IRB, Lupin, TVS Motors, Asian Paints etc
Or, invest in NCD like Muthoot Fin NCD offering 12.75% per annum
Instead of closing SBI MaxGain OD account, you can add some funds in the account and reduce the EMI equal to Rent of house you receive. It will remove your extra burdon. Also, you can invest your remaining amount somewhere else.
Thanks SsNaik84. your reply raised another question in my mind.
If my parked amount and outstanding principal amount is same then my interest outgo will go zero. At this point if i stop my EMI will it change the picture in anyway?
If no then i suppose i will be saving the entire emi whilst the stagnant money in the OD account