India’s largest lender State Bank of India is offering a home loan facility which can double up as a current or savings account along with possessing overdraft facilities. The minimum home loan amount is required to be Rs.20 lakh for opening this special account. This account is known as Maxgain and works as a home loan facility, which ensures that customers can earn maximum yield on their savings. This is possible through lowered interest on home loans without any extra costs. This has been confirmed by State Bank of India on its official website.
The SBI Maxgain home loan scheme is sanctioned as an overdraft facility with extra flexibility for operations pertaining to the current/savings bank account. State Bank of India also offers the net banking facility and a chequebook for operating this account like a current/savings account. You can easily park surplus or additional funds in this SBI Maxgain account for a short time period and lower your overall liability in terms of interest. In future, when you need money, you can easily withdraw the same without giving any notice or paying any added charges.
For example, if a person possesses Rs.25 lakh outstanding in the SBI Maxgain home loan account and receives Rs.3 lakh as a maturity amount for an insurance policy, he/she can put it in the SBI Maxgain account and the loan outstanding will be lowered to Rs.22 lakh and interest will be levied only on Rs.22 lakh. The surplus can be used for other purposes after a short period of time when he/she needs the same. The loan outstanding will again be reset and interest will be charged on the new amount after revision. The surplus will be shown in the account under the available balance head. The minimum amount for the home loan has to be Rs.20 lakh for setting up an SBI Maxgain account. The other terms and conditions for this account are applicable in a simlar manner as conventional home loan products according to te State Bank of India.