State Bank of India – one of the country’s top most lenders provides home loan facility which can be utilized as savings account or current account with overdraft facility. SBI MaxGain Home Loan – a scheme provided by the State Bank of India is unique in itself to work life an overdraft in your bank account. This scheme is beneficial for the investors who want to park their liquid funds to get benefits from home loan interest. Besides this, SBI also provides the account holder with a cheque book along with the net banking facility to operate it as a savings/current account.
How does it work?
SBI MaxGain can be termed as a home loan saver scheme whereby the applicant can invest their surplus home loan funds and gain advances on their home loan in other areas. The home loan applicant can invest an amount which is somewhat similar to the home loan amount and this amount would be tax-free. To understand how it works, SBI MaxGain is an overdraft (OD) account. An overdraft account in simple words is a credit line provided by the bank in exchange of the amount that has been deposited. This amount can be liquidated at any given time for a variety of reasons such as payment of bills or other financial emergencies.
What are the advantages of investing in SBI MaxGain Home loan scheme?
- Overdraft facility to withdraw money at any given time
- The investors have an option of parking their surplus funds into this scheme and get an interest reduction on your home loan in exchange
- Facility of withdrawing surplus money at any given time without prior intimation to the bank
- No processing fees or application needed to withdraw money, which would certainly save a lot of time
- There’s no additional home loan interest rates applicable for this scheme except for when your loan amount exceeds a limit of Rs. 1 crore, then a premium of Rs. 0.25% would be charged
- This can also be used as an alternative for personal loans since it would offer an interest rate of 10%, whereas personal loans usually come with interest rates ranging from 14% to 18%
Special benefits for women applicants
SBI MaxGain offers special benefits for women applicants wherein they would get a rebate of 0.05%. If your wife is one of the co-applicants, you can get such schemes with this rebate as joint owners.
Eligibility and Documentation process
The eligibility criterion for SBI MaxGain scheme is similar to the home loan application. If you wish to apply for this scheme, the following documents would be required in order to complete the loan application –
- Proofs – All the proofs with respect to an individual’s identity, residence, age, and applicant’s photographs needs to be submitted. This is a standard protocol followed to ascertain the authenticity of the information provided by the applicant
- Verification of financial background – Any documents with respect to the applicant’s income and tax returns for the past two consecutive financial years need to be submitted. The credit score is obtained by the bank and a compilation of all these documents would help in measuring the financial health of the applicant.