Will a home loan overdraft work for you?

When it comes to buying a home loan, the borrowers should think of several options – apart from eligibility and occupation, different interest rates offered by different banks (which are fixed rates, floating rate or semi-fixed prices) ) Now, many banks also offer the use of home loan as an overdraft.

The amount on which the home loan interest is calculated is the principal amount which is less than the savings made in the EMI along with the home loan account.

If you make regular deposits in the account, then the payable title will be reduced proportionally.

“Overdraft of Housing Loans is an attractive scheme for dual income families, and it is particularly useful for traders who have a fairly secure financial position with access to surplus regular funds, where they selected personal loans If necessary, withdraw the surplus without need, “says Real Estate, Centrum Capital CEO and Chairman Ajay Jinn. “The facility also offers flexibility in repayment, but on the other hand, it is not suitable for those who are capable of completing their regular EMI and unable to earn additional income, in which case it is a regular home loan It’s better to stick, a bit, almost 50 basis points, “Jane explains The excess amount repaid against home loan is not eligible for exemption under Section 80 (C), as it is not considered prepayment. Consequently, experts suggest that applicants should first conduct a cost-benefit analysis, to determine whether the pre-payment is cheap or if savings on interest confirm the extra premium that you pay for this facility Todo.

In overdraft loans, interest is calculated based on the principal of the loan amount, like a regular home loan. However, it is calculated on a daily basis and cut at the end of the month. Therefore, depends on the outstanding origin. Prepayment of the loan will reduce the interest paid by you, as well as the duration of the loan.

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