New Delhi, April 1 -- Jagadeesh Mohan, a former Phonepe executive, is working on a new business, one that revolves around overdraft (OD) home loans similar to SBI Maxgain. These are home loans that allow you to park surplus funds into the loan account at any point. The bank then charges you interest on the outstanding amount minus the surplus you have parked.

According to Mohan, replacing a standard loan with an OD loan and moving idle money into it from your savings account can result in huge savings. Yes, the money you move to an OD account won't earn any interest, as it would in a savings account, but it will help you save on interest the bank would have otherwise charged you on your outstanding loan. By forgoing 4-6% savings-account ...