Here are some of its key features and benefits.

FEATURES:

1. Instant benefit – Any amount deposited into this account instantly reduces your loan balance and starts saving you interest.

2. Efficient – Interest is charged on a daily reducing balance.

3. Liquidity – The amount parked in the OD account remains liquid at all times.

4. Convenient – Amount can be withdrawn using net banking and cheques.

5. No restrictions – Any amount can be deposited for any number of days and for any number of times.

BENEFITS:

1. Save interest without making prepayments – Right from day one, you can freely park all your savings including your salary directly into your home loan account and save interest on it. Currently, you cannot exercise this option. That being said, the portion of interest that you are currently losing can now be saved month on month simply by optimizing your cash flow. Further, you can invest it for better returns and create a cushion for your future expenses.

2. Optimize savings – Can you use your bonus towards making loan prepayments and making investments at the same time? No, right? But with the HL OD facility, you can. You can park all your bonus into this account and start SIP from it. So, while the major chunk of your bonus continues to remain liquid and save you interest, a small portion from the same bonus will keep flowing into your investment kitty every month thus helping you generate inflation adjusted returns in the long run. So, with the help of this account, you can optimize savings by deploying your bonus to 2 different purposes simultaneously i.e. saving home loan interest instantly and creating wealth for a better tomorrow.

3. Protection against financial crisis – Having a strong back up plan and staying prepared against contingencies at all times is very important. This product can play a pivotal role in bailing you and your family out from the worst of financial crisis like job loss, medical emergencies and so on. No other example can explain it better than the COVID-19 pandemic that shook the world. This product stood the test of time when borrowers lost their jobs overnight and struggled to make ends meet including making loan repayments. Simply by rolling funds back and forth from their savings to their OD account, they could not only pay all their EMIs on time but also successfully protected themselves from losing the house, managed household expenses and helped themselves by keeping their credit history in good shape.

4. Pre-sanctioned personal loan at best terms – Financial needs are infinite. You will surely have more financial needs for which you may need more loans in the future. Any loan other than a home loan will be more expensive and offer shorter tenure. This entails high EMI, higher interest payouts and no tax benefits at all. Moreover, processing a new loan altogether means redoing paperwork and incurring further costs in getting the loan processed. Moreover, high obligations will further forbid you from making sufficient investments for securing your retirement. Hence, keeping the home loan OD limit active for a longer period instead can be more advantageous here. So, as and when you need funds for any purpose, you can access the same anytime, at the lowest ROI possible, with minimum obligation and tax benefits on. If you still face a shortfall, you can avail a top-up facility with the lowest EMI.

5. Most efficient avenue to park short term savings – This is one of the best instruments to park your short term savings. You must be currently parking your short term savings in either of 2 instruments, fixed deposits and debt funds. Fixed deposits offer substandard returns due to its tax inefficiency and low ROI. Moreover, it has liquidity issues as well as you have to break it prematurely and pay a penalty should you need funds prematurely. Debt or liquid funds on the other hand are market linked where returns are not guaranteed, tax inefficient and need to be redeemed. HL OD on the contrary is the only option that beats all the odds and scores higher in all of the 3 departments i.e. risk, return and liquidity. It offers the highest rate of return with negligible risk involved and 100% liquidity with no penalty.