In my last post, I wrote about the SBI Max Gain Home Loan scheme features, benefit, advantages and disadvantages in detail. In this post, I try to focus on the differences between an SBI MaxGain Home Loan and Regular Home Loans.
Before proceeding further, I summarized the earlier post into a video. Please have a relook into this video for better understanding of this product.
Below I tried to explain the difference between SBI Max Gain Home Loan and Regular Housing Loans.
You notice that, the calculation of interest that makes this product different from others. You earn interest additionally on what you park as your surplus cash. However, a principal part remains same as per schedule and will be adjusted to Book Balance, which in return reduces your Drawing Power.
Tenure of the loan and EMI schedule remains same in both the cases. However, the method of interest applicability varies.
When it comes to liquidity and usage of the home loan account as an SBI Account, then definitely SBI Max Gain has an edge over regular home loan products. When it comes to taxation, the surplus you deposited into this account and interest earned on this surplus will not be part of any tax saving.
Definitely a good product if you are expecting some surplus cash at the regular time. You can benefit from depositing to this account and can withdraw at any point of time.