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.
RE:Try Home Saver kind of loan account
by TS on Apr 30, 2007 03:20 PM Permalink
I have done the same thing. You are earning intertest @ 11% or whatever the rate of home loan. In a FD, you would have earned only 7%, out of which, one third would have gone as tax.
RE:Try Home Saver kind of loan account
by Dhoom on May 01, 2007 03:39 PM Permalink
Its a good option, but not sure this option is available in all banks, anyway thanks for information. I'll talk to my bank
RE:Try Home Saver kind of loan account
by Nand Gupta on May 05, 2007 05:07 PM Permalink
As per my knowledge lots of banks offer this kind of schema. HSBC, SCB, ICICI to name a few. However, you should keep in mind that the interest rate of such schemes will be higher than the normal ones. They differ from 1% to 2%.
RE:RE:Try Home Saver kind of loan account
by THANGAVELU on Apr 30, 2007 03:15 PM Permalink
But, we have no idea for the SCB duration increase during interest upward revisions. They are not informing these details to customers. rgs Velu
RE:Try Home Saver kind of loan account
by SNEHALATHA KRISHNA SHETTY on May 06, 2007 03:17 PM Permalink
You say that these banks and their such schemes are helpful, "Quote your example"... If i had taken a loan say from this bank for 10,00,000 and i keep 1 lac in their scheme, and i will be charged interest on 9 lac... Why wouldn't i pay up the bank the 1 lac i have, its like the bank loans me 10 lac and i keep 10 lac i have with the bank and the bank dose not charge me interest (only principal as EMI each month)Dose this solve any purpose these are smart banks (take from you and lend you back)I'd prefer instead pay up the 10 lac as income towards the new house, The EMI'S can be put up as savings. The biggest catch is the amount is liquid, no moment you withdraw you will be penilised and the interest charged will be current and at the discrete of the bank.
