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The SBI MaxGain Home Loan stands out for its unique features that combine the benefits of a traditional home loan with the flexibility of an overdraft facility. This helps borrowers manage their finances efficiently and reduce their interest burden.
Save ₹10 Lakhs and Reduce Your EMI Stress with SBI Maxgain!
What is SBI Maxgain OD?
The SBI MaxGain Home Loan allows borrowers to use their temporary surplus funds to reduce the interest on their home loans. If a borrower has extra funds that they can’t use to foreclose the loan due to upcoming obligations, they can deposit this money into the MaxGain account.
This surplus reduces the principal amount, lowering the interest calculated. Borrowers can withdraw this surplus anytime, reducing interest paid with each EMI and speeding up loan repayment. The loan operates like a savings or current account, maximizing interest savings.
Eligibility Criteria
The eligibility for the SBI MaxGain Home Loan is similar to regular SBI home loans.
| Criteria | Details |
|---|---|
| Minimum Age | 18 years at the time of loan sanction |
| Maximum Age | 70 years by loan repayment |
| Considerations | Income, repayment capacity, assets, liabilities, and project cost |
| Purpose | Purchase, construction, extension, repairs, renovation of residential properties |
SBI Maxgain (Overdraft Facility) Calculator
SBI Maxgain Home Loan Interest Rate
| CIBIL Score | Regular Home Loan | CRE Home Loan |
|---|---|---|
| More than or equal to 800 | 9.55% p.a. | 9.65% p.a. |
| 750 to 799 | 9.65% p.a. | 9.75% p.a. |
| 700 to 749 | 9.75% p.a. | 9.85% p.a. |
| 650 to 699 | 9.85% p.a. | 9.95% p.a. |
| 550 to 649 | 10.05% p.a. | 10.15% p.a. |
Features and Benefits
The SBI MaxGain Home Loan functions as an overdraft facility, providing a credit line against the loan amount. Interest is charged only on the amount utilized, not on the entire loan amount.
| Features | Description |
|---|---|
| Overdraft Facility | Functions as a credit line with interest on the used amount |
| No Extra Charges | No additional fees for availing the loan |
| Processing Fee | Same as a regular home loan |
| Banking Facilities | Cheque book, debit card, and net banking |
| Minimum Loan Amount | ₹20 lakhs |
| Maximum Loan Amount | No limit |
| Savings on Interest | 1-3% higher savings compared to FDs |
| Additional Earnings | 4% interest if parked amount exceeds loan amount |
Advantages of SBI Maxgain Home Loan
The SBI MaxGain Home Loan offers:
- High liquidity and flexibility through an overdraft facility
- Substantial interest savings by allowing surplus fund deposits
- Flexible repayment options with no prepayment penalties
- Tax benefits under sections 80C and 24(b) of the Income Tax Act
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SBI Maxgain Vs Regular Home Loan
Let’s consider a scenario where a borrower takes a ₹50 lakh home loan and receives a ₹10 lakh bonus after a year.
Regular Home Loan:
- The bonus cannot be directly used to reduce the loan interest.
- If ₹10 lakhs are pre-paid, the EMI or loan tenure may reduce, but the borrower loses liquidity.
SBI MaxGain Home Loan:
- The ₹10 lakhs are deposited in the MaxGain account.
- Interest is calculated on ₹40 lakhs instead of ₹50 lakhs.
- The ₹10 lakhs can be withdrawn anytime, maintaining liquidity.
Benefit: MaxGain provides both interest savings and liquidity, unlike a regular home loan which restricts flexibility.
Checkout our Overdraft Facility Calculator to figure out how much you’ll save opting SBI Maxgain Home Loan.
Conclusion
The SBI MaxGain Home Loan offers unparalleled financial flexibility and savings potential, making it an ideal choice for savvy borrowers. With benefits like high liquidity, interest savings, flexible repayment options, and tax advantages, it empowers you to manage your home loan efficiently and achieve greater financial stability.
Ready to take advantage of the SBI MaxGain Home Loan? Visit Credit Dharma for expert guidance and personalized assistance to secure your loan today.
Frequently Asked Questions
Yes, SBI MaxGain is highly beneficial for borrowers with temporary surplus funds. It allows you to park surplus money in your loan account, reducing the interest burden while providing liquidity. This flexibility can lead to significant interest savings compared to a regular home loan.
The interest rate for SBI MaxGain varies based on the borrower’s CIBIL score. For example, it starts at 9.55% p.a. for borrowers with a CIBIL score of 800 or above. Check with SBI for the most current rates.
The minimum loan amount for SBI MaxGain is ₹20 lakhs, with no maximum limit specified, allowing for significant borrowing flexibility.
A term loan involves fixed monthly EMIs with interest calculated on the entire loan amount. MaxGain, however, operates like an overdraft facility, allowing you to deposit surplus funds to reduce the principal and interest burden, while providing the flexibility to withdraw these funds when needed.
Yes, it is possible to convert an SBI MaxGain Home Loan to a regular term loan. You would need to contact SBI for the specific procedure and any applicable terms and conditions.
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