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Loan

Offset Account

Also known as: Home Saver Account, Offset Facility

Linked savings account where balance reduces home loan interest calculation.

Detailed Explanation

Offset account (like SBI MaxGain) is a savings account linked to your home loan where the balance is offset against your outstanding loan principal for interest calculation. Interest is charged on (outstanding loan minus offset balance). This provides liquidity while reducing interest burden, ideal for variable cash flows or emergency funds.