Fresh home loan borrowers having restricted liquidity can opt for the home saver option, a home loan variant. Many lenders offer home loan overdraft facility, branded as home saver, home-loan advantage etc. But they require higher liquidity. Under this facility, an additional overdraft account is opened in the form of savings or current account. The borrower can park his surpluses in the overdraft account and withdraw from it as per his cash flow requirements.

The lender would calculate the interest cost after deducting the surplus in the savings/current account from the outstanding home loan amount. Thus, borrowers would derive the benefit of making prepayments without sacrificing liquidity.