SBI, India's biggest lender, has a home loan facility, which can be used as a savings or current account with overdraft facility. Known as Maxgain, this home loan facility enables its customers to earn optimal yield on their savings by reducing interest on home loans, with no extra cost, the state-owned lender said on its website. Under SBI Maxgain, home loan is sanctioned as an overdraft with added flexibility to operate the home loan account like savings bank or current account. SBI also provides you cheque book and net banking facility to operate it as a savings/current account.
How SBI Maxgain Works
SBI Maxgain is a home loan account where you can park your surplus fund for short period of time and reduce the overall interest liability and whenever in future you require the money you can withdraw that without any prior notice or charges. For example: You have Rs 25 lakh outstanding in your SBI Maxgain home loan account. You get Rs 3 lakh from one of your insurance policies as maturity amount, which you plan to use after four months for your child's higher studies. So in the meantime you can park the surplus Rs 3 lakh in the SBI Maxgain account and your loan outstanding will reduce by Rs 3 lakh to Rs 22 lakh and interest will be charged only on the Rs 22 lakh.
After four months when you require the money, you can withdraw that Rs 3 lakh and your loan outstanding will be reset accordingly and interest will be charged on the revised amount. The withdrawable surplus will be reflected in your account as "available balance".