Hello

I just heard that Citibank has introduced some sort of smart home loan which allows one to offset his savings account balance with loan amount so that loan interest is charged on reduced balance.

So for example , if one has say home loan of 40 lakhs from Citibank and an associated deposit account with balance of 10lakh so the customer would be charged loan interest on 40-10 = 30 lakh.

This not only has the benefit of reduced EMI but also availability of liquid cash for any contingency in your savings account.

Has any one heard of this ?
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  • Originally Posted by himanshupant
    Hello

    I just heard that Citibank has introduced some sort of smart home loan which allows one to offset his savings account balance with loan amount so that loan interest is charged on reduced balance.

    So for example , if one has say home loan of 40 lakhs from Citibank and an associated deposit account with balance of 10lakh so the customer would be charged loan interest on 40-10 = 30 lakh.

    This not only has the benefit of reduced EMI but also availability of liquid cash for any contingency in your savings account.

    Has any one heard of this ?


    SBI Max Gain Home Loan is exactly the same and is on offer since 2-3 years if I am not wrong. By the way, what interest rates are being offered by Citi bank on Home Loans.
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  • SBI max gain gives the same advantage, and works on the same principle. What is the rates been charged for this loan by CITY? Is it more than the conventional home loan, as in case of SBI.
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  • Originally Posted by yksharma
    SBI Max Gain Home Loan is exactly the same and is on offer since 2-3 years if I am not wrong. By the way, what interest rates are being offered by Citi bank on Home Loans.



    thanks friend. Is it possible to convert existing Yuva home loan into max gain ?
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  • Originally Posted by himanshupant
    thanks friend. Is it possible to convert existing Yuva home loan into max gain ?


    Yuva is similar to Max Gain, it is just that only the interest applied on Home Loan is payable during the first 36 months. The regular EMIs start after completion of 36 months. Rest is same

    Please visit below url for more details:

    https://www.sbi.co.in/?action=viewsection⟨=0&id=0,1,20,115,741,786
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  • I think there is no current account linked to Yuva acc in which you can deposit surplus funds and save interest of home loan.

    Originally Posted by yksharma
    Yuva is similar to Max Gain, it is just that only the interest applied on Home Loan is payable during the first 36 months. The regular EMIs start after completion of 36 months. Rest is same

    Please visit below url for more details:

    https://www.sbi.co.in/?action=viewsection⟨=0&id=0,1,20,115,741,786
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  • Originally Posted by himrathore
    I think there is no current account linked to Yuva acc in which you can deposit surplus funds and save interest of home loan.


    Is it? I have perception that this is similar to Max Gain else there is no special benefit to customers by opting Yuva loan.
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  • Yuva loan is nothing but a regular loan with paying option of "only interest" till 36 months against 18 months of regular loan.

    That is my understanding, might be wrong.
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  • HSBC has a similar kind of scheme too
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  • Many Private sector banks have this option including City, HSBC and Standard Chartered, just got to know yesterday.
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