I have taken Standard Chartered Bank's 'Home Saver' loan plan.
In this plan, the amount that you have in their account will be deducted from the total loan amount before calculating interest on a daily basis.
For example, let's say, you have taken 10 lakhs loan, and you have 1 lakh in their account, while the interest is calculated on a daily basis, only 9 lakh will be considered for calculation of interest.
This reduces the amount you pay as interest in the EMI, reduces the loan tenure and also reduces the amount you pay as interest.
This is helpful for people who have liquid cash in hand which need not be used for anything else at this point of time.
Note that you can withdraw the amount that you have with their account at any point of time, so it's liquid.
This is equivalent to putting your money in a 10% interest earning savings account, while you save on interest too.
