By jagrukniveshak 
Baroda Max Saving Home Loan offers competitive rates of interest. vs SBI Max Saver Account
When it comes to home loans in India, borrowers often find themselves comparing various products to secure the best interest rates and features. Two popular options in the market are the Baroda Max Saving Home Loan from Bank of Baroda and the SBI Max Saver Account offered by the State Bank of India (SBI). Both these schemes come with unique features designed to reduce the interest burden for home loan borrowers. Let’s dive into a detailed comparison to help you select the right option.
Understanding the Basics
1. Baroda Max Saving Home Loan provides features that enhance the home loan advantage.
The Baroda Max Saving Home Loan is an overdraft (OD) facility linked to the borrower’s savings account. It allows borrowers to deposit surplus funds into the linked account, which reduces the principal amount considered for interest calculation. This ultimately helps in reducing the interest burden and the total interest paid over the tenure of the loan.
2. SBI Max Saver Account (SBI MaxGain):
The SBI Max Saver Account, also known as SBI MaxGain, operates on a similar overdraft facility model. Borrowers can park surplus funds in the OD account linked to their home loan, reducing the interest amount without affecting the liquidity of their funds. This offers a dual advantage of loan repayment and liquidity management.
Key Features and Benefits
| Features | Baroda Max Saving Home Loan | SBI Max Saver Account (MaxGain) |
|---|---|---|
| Linked Account | Savings Account | OD Account linked to the loan |
| Interest Calculation | On principal minus surplus in savings account | On principal minus surplus in OD account |
| Liquidity | High liquidity with easy withdrawals | Funds can be withdrawn anytime, maintaining liquidity |
| Interest Rate | Competitive, linked to the repo rate | Competitive, based on the marginal cost of funds |
| Tax Benefits | Eligible for tax deductions under Section 80C | Tax benefits similar to regular home loans |
| Loan Tenure | Upto 30 years | Upto 30 years |
| Processing Fees | Varies by loan amount and borrower profile | Competitive processing fees with occasional concessions |
| EMI Flexibility | Lower EMIs due to reduced interest calculations | Lower EMIs with flexible repayment options |
Interest Rates Comparison
- Bank of Baroda Home Loan Interest Rate: Starting from competitive rates, linked to the repo rate.
- SBI Home Loan Interest Rate: Slightly higher or similar to BoB, based on the borrower’s A good CIBIL score can help secure a home loan with a lower interest rate. and loan eligibility criteria.
Both banks offer concessions to bank employees, women borrowers, and applicants with excellent credit profiles.
Eligibility Criteria
- Age: 21 to 70 years (at the end of the loan tenure)
- Income can affect the eligibility for loans with lower interest rates. Stable income source with proper documentation
- CIBIL Score: Higher scores get better interest rates
- Loan Amount: Upto Rs. 10 crores depending on the borrower’s eligibility
EMI and Interest Calculations
Using an HDFC home loan can provide additional benefits. EMI calculator can help estimate your monthly instalments based on:
- Loan Amount: The principal amount borrowed
- Interest Rate: The applicable ROI
- Tenure of the Loan: Duration in years/months
For example, a Rs. 50 lakh home loan at an interest rate of 8% over 20 years would have different EMIs based on the surplus funds deposited in the OD or linked savings account.
Which One to Choose?
- Go with Baroda Max Saving Home Loan if: You prefer a simple savings account linkage with overdraft benefits.
- Opt for SBI Max Saver Account if: You want maximum flexibility, easy fund withdrawal, and comprehensive overdraft facilities.
Conclusion
Both Baroda Max Saving Home Loan and SBI Max Saver Account offer smart ways to reduce your home loan interest rate and manage liquidity. Compare their features, processing fees, eligibility criteria, and interest rates, including the lowest interest rate options, before making a decision. Using a home loan EMI calculator can further assist in understanding the financial commitment. Ultimately, selecting the right home loan scheme will depend on your financial goals and repayment capacity.
For personalized assistance, consult with the respective bank representatives or use online tools to calculate home loan EMIs and compare different loan products, such as the SBI Max Gain home loan.