Best Home Saver Loan

[Finchamp!]

Hi all,

I am planning to port my regular Home Loan to some good Home Saver Loan (i.e. Loan + OD Facility), e.g. SBI Maxgain, BOB Home Advantage etc. Please guide me with what all options are available, and which one is best option (and why)?

Thnx!

 

[wiizzard]

Both are good. Key difference between Bob and SBI is that BOB issues a linked 0 interest savings account, while SBI makes your loan into an Overdraft with a reducing limit.
So in case of SBI , Your tenure is fixed while in case of BoB your tenure reduces if you make extra payments

 

[Credit raja]

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&

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[shivamk]

Hi all,

I am planning to port my regular Home Loan to some good Home Saver Loan (i.e. Loan + OD Facility), e.g. SBI Maxgain, BOB Home Advantage etc. Please guide me with what all options are available, and which one is best option (and why)?

Thnx!

What interest rate are you getting bro? And your CIBIL? I might be planning a home loan in future and your inputs would be really helpful

 

[Finchamp!]

Both are good. Key difference between Bob and SBI is that BOB issues a linked 0 interest savings account, while SBI makes your loan into an Overdraft with a reducing limit.
So in case of SBI , Your tenure is fixed while in case of BoB your tenure reduces if you make extra payments

So does that BOB Home Advantage in a better position?

 

[Finchamp!]

What interest rate are you getting bro? And your CIBIL? I might be planning a home loan in future and your inputs would be really helpful

My current HL is a regular one with Kotak Bank. CIBIL rating is around 800 and ROI is 8.70%.

 

[shivamk]

My current HL is a regular one with Kotak Bank. CIBIL rating is around 800 and ROI is 8.70%.

Got it. Have you started your talks with SBI/BoB? What rates are they offering?

 

[Finchamp!]

Check Out..(Best Home Loan Saver Product without OD Facility)​

AXIS Shubh Aarambh Home Loan​

&

AXIS Fast Forward Home Loan​

Thanks! I'll look into it.

 

[Finchamp!]

Got it. Have you started your talks with SBI/BoB? What rates are they offering?

Yes. I have discussed with SBI - they are willing to offer 8.90 - 8.95%. I am yet to talk with BoB.

 

[wiizzard]

So does that BOB Home Advantage in a better position?

It depends on what you want. If you want an ability to draw money that you have paid extra then SBI is better, while if you want to close the loan faster, than Bob is better.
That being said, in both cases you save on interest on the extra amount paid.
Depending on the size of your loan, both SBI and BoB will enroll you into their premium facility i.e. SBI Wealth and BoB Radiance

 

[shivamk]

It depends on what you want. If you want an ability to draw money that you have paid extra then SBI is better, while if you want to close the loan faster, than Bob is better.
That being said, in both cases you save on interest on the extra amount paid.
Depending on the size of your loan, both SBI and BoB will enroll you into their premium facility i.e. SBI Wealth and BoB Radiance

Isn't withdrawing money in BoB also possible? Else we can close earlier in case of a regular HL as well

 

[shivamk]

Yes. I have discussed with SBI - they are willing to offer 8.90 - 8.95%. I am yet to talk with BoB.

Cool, sounds like a good take

 

[mayankcse10]

Isn't withdrawing money in BoB also possible? Else we can close earlier in case of a regular HL as well

Yes, it is possible to withdraw in BOB as the money is parked in the related savings.

If you want to pre-pay some loan amount, you can transfer it from savings to your loan account or request the branch to do the same. That amount can't be withdrawn, obviously, as it would be adjusted against the loan.

 

[mayankcse10]

Yes. I have discussed with SBI - they are willing to offer 8.90 - 8.95%. I am yet to talk with BoB.

I do not have personal experience with SBI, but BOB has been good for me. Interest rates would be similar to those at SBI. No issues, plus, if your loan-related savings account meets Radiance criteria, it will be upgraded to the same. So there are additional benefits. You can refer to the below thread, I too have similar profile:

U

Thread 'AMA - Bank of Baroda 2024 review - hidden Gem (HomeLoan, Radiance account, Sapphire & Rupay select debit card, Eterna CC)'

Jun 1, 2024

I got introduced to BOB in 2021 when I got an offer to transfer my home loan. BoB is one of handful banks who has overdraft facility for HL, just like SBI maxgain. So, I started putting all my emergency funds and non-investment funds in this account.
Recently, I got to know that my account has been upgraded to Radiance (eligibility criteria is 30L NRV) - which is their top tier account (like Imperia in HDFC) and gives access to a RM (the best part is he doesn't push for investments like my HDFC RM). I started digging deeper about Radiance benefit and in last 1 month got my self 2...

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[shivamk]

Yes, it is possible to withdraw in BOB as the money is parked in the related savings.

If you want to pre-pay some loan amount, you can transfer it from savings to your loan account or request the branch to do the same. That amount can't be withdrawn, obviously, as it would be adjusted against the loan.

How is it an OD based loan then? It's just a normal loan with a savings account separately

 

[Finchamp!]

How is it an OD based loan then? It's just a normal loan with a savings account separately

Yes. I have this doubt too.

 

[mayankcse10]

How is it an OD based loan then? It's just a normal loan with a savings account separately

It's not technically an OD loan but the functionality is same. Any balance that you have in the Savings account at EOD is reduced from the outstanding loan amount for interest calculation.

For example, if you have a 10L loan and you have a savings account balance of 4L from 1–15 August and a 2L balance from 16–31 August.
The interest would be calculated on 6L for the 1–15 Aug period + 8L for the 16–31 Aug period.

 

[shivamk]

It's not technically an OD loan but the functionality is same. Any balance that you have in the Savings account at EOD is reduced from the outstanding loan amount for interest calculation.

For example, if you have a 10L loan and you have a savings account balance of 4L from 1–15 August and a 2L balance from 16–31 August.
The interest would be calculated on 6L for the 1–15 Aug period + 8L for the 16–31 Aug period.

Oh and we get savings interest as well?

 

[mayankcse10]

Oh and we get savings interest as well?

No, no interest on savings account.

 

[shivamk]

No, no interest on savings account.

So it's just that the amount is kept in a separate account but it works like OD only. Thanks a lot for clarifying.