Switching Home loan from IDBI to SBI Max Gain.. Is it good idea?

POSTED BY Ram ON June 18, 2012 7:51 pm COMMENTS (3)

Hello,
I have existing home loan of ~20L from IDBI @ 11% interest. Last week I came to know about SBI Max gain and looking at its feature of reducing surplus amount from loan amount I think I should go for it.
Can anyone provide me expert advise on it. Does IDBI has similar load scheme?

Thanks,
Ram

3 replies on this article “Switching Home loan from IDBI to SBI Max Gain.. Is it good idea?”

  1. Dear Rameshwar, SBI is offering loan @ 10.5% where as your existing loan is @ 11%. The resultant benefit is very low but the amount of paper work & leg work ‘ll be huge in case your property documents are not in order as per SBI requirement.

    If you are ready to bite the bullet. You are Welcome sir. Please do note, Max Gain is beneficial only if you do have surplus amount to park in it. Else you are better off with IDBI. No as on date IDBI does not has similar product as per my info, yet you may check from your bank branch or concerned staff.

    Thanks

    Ashal

    1. Rameshwar Khenat says:

      Hi Ashal,

      Thanks for the reply.

      The reason I am considering this because.. depositing a surplus amount of 10000 in the beginning in max gain account will save ~18000 and I can still withdraw that amount if required. I thought its better to put money from my saving account (I am keeping aside for emergency) to max gain account.

      Any idea if IDBI will charge me for switching home loan?

      Thanks,
      Ram

      1. dear Rameshwar, No IDBI ‘ll not charge you any penalty after the recent guidelines of RBI. Yes parking the emergency funds in Max Gain is a good idea. Please go ahead.

        Thanks

        Ashal

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