SBI Maxgain Home Loan: Review

(Updated in Jan 2017)

For those who see home loan re-payment as a pain each month, ‘Maxgain Home Loan’, offered by the State Bank of India is a convenient way to save and reduce your interest burden. Simply by clubbing your liquid finances with the home loan account, you can reduce interest burden substantially.

To understand the difference between a normal home loan and a Maxgain home loan, let’s consider the case of Mr. Mehta;

Mr. Mehta recently took a Maxgain home loan from SBI. His outstanding principal is 25 lakhs at an interest rate of 8.80% for a term of 20 years.  (As in Jan 2017)

Let’s see how having a Maxgain home loan benefits him in different situations;

Case 1:

Mr. Mehta recently received a sum of Rs. 10 lakhs. See how he can use this sum in the case of a Maxgain home loan and a normal home loan to bring his interest burden down;

  • Normal Home Loan:

He can deposit the entire sum of 10 lakhs in the home loan account and prepay his loan, reducing his loan amount to Rs. 15 lakhs. Subsequently reducing his interest burden, but leading to a loss of liquidity.

For making the deposit, he will have to go through a long procedure of filling a deposit form, paying a processing fee and will have to make at least  2 visits to the bank.

  • Maxgain Home Loan:

Here, he can park the sum of 10 lakhs in his home loan account, reducing the principal amount on which interest is payable to Rs. 15 lakhs.

This means that he will have to pay interest only on the difference of principal amount and the surplus 10 lakhs and not the original principal amount of 25 lakhs.

More over, he can withdraw this sum any time simply by en-cashing a cheque or using a debit card, maintaining liquidity of the deposit of 10 lakhs!

Maxgain loan Vs. Normal loan

Maxgain loan Vs. Normal loan

Case 2:

Mr. Mehta urgently needs Rs. 3 lakhs. Let us see the course of action in the case of a normal home loan and a Maxgain home loan;

  • Normal Home loan:

He will have to apply for a top up loan and will have to wait to get approval from the bank. This can take a few days. He may have to pay a processing fee too, depending on the bank.

  • Maxgain Home Loan:

Here, he can simply walk into any branch of SBI and encash a cheque of Rs. 3 lakhs from his Maxgain account!

Maxgain loan Vs. Normal loan

Maxgain loan Vs. Normal loan

So a Maxgain account not only allows you to utilize your liquid savings to reduce interest burden on home loan, but also enables you to use your home loan account like any other savings account.

Here are a few tips to help you maximize your savings in Maxgain home loan;

1. Start using this account as the primary money parking account for all your liquid finances.

2. Route all your transactions through maxgain account (payment of utility bills, online shopping, credit card payments), If possible.

3. You can make use of net banking to schedule a transfer of the EMI amount to the saving bank account, a few days prior to the date of payment. So not only can you park your surplus funds, but also park the EMI payments in the OD account to maximize savings on interest.

4. You can also avail ATM card facility on the OD account or link it to an existing SBI savings account to avail the same.

5. However, any transaction made through a maxgain ATM card from another banks’ ATM will be charged a transaction fee, since it is an over draft account and not a savings account.

Here are a few frequently asked questions by our customers, which will give you a better understanding of Maxgain home loan:

1. Does the SBI charge a higher interest rate on Maxgain loans?

Yes , at present SBI charges 15 basis point more on MaxGain loans. So, the normal term loan is available for 8.60% for women borrowers but Maxgain is available for 8.75% for women borrowers. For male borrowers, the same rates are 8.65% and 8.80 respectively. (As in Jan 2017)

2. Does the SBI charge a higher processing fee for Max Gain?

At present, there is no difference in processing fee between Maxgain loans and term loans offered by SBI.

3. Is it mandatory to purchase property or life insurances while taking Maxgain loan?

Yes, it is advisable to have property insurance while taking a home loan. But it is not mandatory to purchase one from any sister concerns of SBI.

4. Can I claim section 80C principal repayment benefit for the surplus amount parked in Maxgain?

Unfortunately, Maxgain does not offer any tax benefit on the parked surplus amount in your OD account, since it is not an actual repayment of loan.

5. Can I enroll my MF SIPs in Maxgain?

Yes, you can. But make sure that there is surplus available balance else you’re ECS or SIP mandate will bounce.

6. If my loan amount is Rs. 30 lakhs and my parked surplus amount is also Rs. 30 lakhs, does it mean that my loan is closed & I can claim my property papers from SBI?

No, your loan is not closed as you have deposited the surplus amount on the OD account. This means that only your interest outgo will become zero and you will still have to pay the principal component of the EMI.

If you want to close your loan, inform the SBI in written. Then they will adjust your parked surplus amount towards the outstanding loan amount and your loan will stand closed.

7. I have taken a Maxgain home loan for an under-construction property. Can I park surplus amount to save on interest outgo?

Yes, you can park your surplus funds, but since your property is in the ‘under-construction’ phase, you will not be able to withdraw your funds during this period.

 8. Can I transfer my home loan to Maxgain home loan?

Yes, you can.  Get in touch with your loan manager for the same. Or sign up at SwitchMe.in to switch home loan from the comfort of your home and have us do all the legwork for you.

Make use of the calculator below to see how much you can save by transferring your home loan to SBI’s Maxgain home loan.

Download SBI Maxgain Amortization Schedule

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Comments ( 296 )
  1. suryawanshivphal
    November 9, 2016 at 6:11 pm
    Reply

    Can we get detailed report from SBI about my maxgain HL for the payments I did till the time and the benefits we see as of now? How to request the same?

    • Sumita Nath
      Sumita Nath
      November 28, 2016 at 4:29 pm
      Reply

      Hi Suryawanshivpal,

      You can get the report over email or if you are using net banking you can see it by your-self.

  2. Santosh
    August 20, 2016 at 2:42 pm
    Reply

    Hi Tarini,
    First of all, nice explanation above. My question is : We are planning to buy a flat in Bangalore and my wife is a SBI employee, we are planning for a loan of around 32 lakhs. She would get this loan with Interest rate of 6.75% (Staff rate) and I am not sure, if this is the same rate for max gain as well. Considering, she still has a service period of 30 years. May I ask you ,if you could you suggest us which would be better in order for the loan- the normal loan or the max gain.

    • Sumita Nath
      Sumita Nath
      September 28, 2016 at 3:38 pm
      Reply

      Hi Santosh,

      I would recommend you to go with max gain as it helps you to repay your loan faster.

  3. rani
    July 26, 2016 at 2:30 pm
    Reply

    Hi,
    I took a HL from SBI – scheme named SBI YUVA HL MAXGAIN.
    Is it similar to maxgain account, same way I can park surplus amount in my OD Account, since, I am able to see a OD account where EMI is getting debit. It works like maxgain- where Available balance is increased whenever I deposit and Book balance is reduced with my deposited amount.How can I prepay or foreclose my loan.

    • Sumita Nath
      Sumita Nath
      September 28, 2016 at 5:07 pm
      Reply

      Hi Rani,

      You will have to intimate the bank to deduct your surplus amount from the outstanding principal amount for foreclosing your loan.

  4. Kumar
    July 25, 2016 at 12:08 am
    Reply

    I want to apply for a loan of 50 lakhs. I am confused between Max gain and normal loan from SBI. Can i make my Maxgain account as my salary account so that my salary gets credited to the same account. Will i end up benefitting something if i choose max gain over normal loan. Apart from EMI, i anticipate adding 2-3 lakhs every year to that account.

    • Sumita Nath
      Sumita Nath
      September 29, 2016 at 5:38 pm
      Reply

      Hi,

      You can go with max gain account for which you need to open salary account any which way. For those who see home loan re-payment as a pain each month, ‘Maxgain Home Loan’, offered by the State Bank of India is a convenient way to save and reduce your interest burden. Simply by clubbing your liquid finances with the home loan account, you can reduce interest burden substantially.

  5. Ganesh
    July 12, 2016 at 6:01 pm
    Reply

    I took home loan from SBI max gain for 24L 5 years back. Now I am planning to purchase a plot. If i apply for a topup loan on my current home loan, will the top up loan also gets max gain benefit? After my topup loan will i be able to get tax benefit for complete interest(basic home loan amount + top up loan amount) i pay?

    • Sumita Nath
      Sumita Nath
      October 5, 2016 at 3:12 pm
      Reply

      Hi Ganesh,

      Max gain benefits can be availed only on the home loan and top loan has a separate account. Also, you will get a tax advantage for a top up loan only if you use the loan amount exclusively for repair, renovation and construction activity of the home. Otherwise top up loans are loans with no tax sops, unlike a home loan.

  6. Tushar S Chaudhari
    June 4, 2016 at 9:58 am
    Reply

    Hi,

    I have a maxgain account with 9.55 interest rate. I have parked some amount in OD and that has resulted in interest saving of around 25000 so far. Does it may any sense to pay off this interest as prepayment. Does prepayment give any advantage in max main account than to park surplus amount in OD?

    Regards,
    Tushar

    • Tarini
      Tarini
      June 6, 2016 at 5:23 pm
      Reply

      Hey Tushar

      With respect to Maxgain account, parking the money in your OD account will give you the same benefits as prepaying the outstanding loan. Further, SBI has a restrictive prepayment policy when it comes to Maxgain:
      1. Borrowers are allowed to prepay only 2 – 3 times during the entire home loan tenure.
      2. Further, each prepayment must amount to minimum 20% of the current outstanding loan amount.
      I hope this information helps you make a decision 🙂

  7. nitin loomba
    May 26, 2016 at 6:49 pm
    Reply

    I took a home loan of 30 Lakhs & have paid around 10 lakhs . My current outstanding amount is 19.70 Lakhs and the loan is through IDBI @10%.
    I applied for a lona transfer to SBI @9.50% with a max gain facility , but as per them I cannot avail it as my loan amount is less then 20L .
    Also , I have an option to get my loan converted to a similar product available with IDBI bank called as interest saver , but ROI is 9.75 & I will have to pay .50% of the outstanding.
    Considering I can keep around 5-10L in my savings account , which option would you suggest?
    Cheers
    Nitin Loomba
    M 9891005896

    • Tarini
      Tarini
      June 3, 2016 at 4:40 pm
      Reply

      Hey Nitin

      Given that you cannot switch to SBI’s Maxgain home loan due to a lower outstanding amount here are a few options that I can suggest:
      1. Switch to a regular SBI home loan and use the surplus 5 – 10 lakhs to prepay your home loan. This will have the same impact as lowering the interest amount with a drawback of that money becoming inaccessible forever.

      2. You can switch to IDBI’s interest saver and park the surplus money in your OD account. Even though the interest rate is higher and you will have to pay a processing fees of .5% of the loan (= Rs. 9,850), you stand to save more here (compared to a regular SBI home loan) due to the benefits provided by an OD account. As, in an OD account you have the option to maintain as much liquidity as you can. Even if for a short period of time, it will help you save considerably on the interest payments, which will not be possible in a regular SBI account.

      I hope this helps you make a decision 🙂

  8. Prashant
    May 8, 2016 at 8:13 pm
    Reply

    Hi Tarini,

    Thanks for this awesome post. It’s really very helpful.

    I have booked an under construction flat worth Rs 62 lakh. The possession would be in Jun 2016. I am going to apply for SBI Max Gain home loan and planning to get 49 lakh (approx 80% of 62 lakh) approved. As per my mathematics, till final disbursement I will be taking only 44 lakh (remaining 5 lakh I will arrange myself).

    Question 1 – As per my understanding, at the time of possession, my max gain account should show 49 lakh as Limit and 44 lakhs as Drawing Power. Can I withdraw remaining 5 lakh anytime after possession since I will get transaction rights? In other way, will these 5 lakhs will be shown as Available Balance?

    Question 2 – Can I pay full EMI (interest + principal on disbursed amount) till final disbursement or can I pay only pre-EMI (interest)?

    Question 3 – are both options – fixed and floating interest rates available with Max Gain? If so which is more preferred?

    Thanks in advance,
    Prashant

    • Tarini
      Tarini
      June 28, 2016 at 3:44 pm
      Reply

      Hey Prashant

      Thank you for the appreciation, we are always happy to help 🙂 Regarding your queries, I think your are a bit confused about how Maxgain works. So let’s go over how it works, before moving on to your queries;
      1. In the case of under- construction properties the home loan is partially disbursed. So if you take a home loan of 49 lakhs, the entire value will be disbursed to the builder in parts, irrespective of your payment capabilities.
      answer to question 1: You will not be able to withdraw the 5 lakhs from your home loan. It will get directly disbursed to the builder by your bank. so if you are sure that you will be able to pay for the last installment yourself, I suggest that you take a home loan accordingly. Or you could take the full 49L and then use the 5L to make a partial prepayment once the loan has been fully disbursed.

      2. Any left over loan amount before complete disbursement will be limit minus drawing power and not the available balance. Available balance shows the balance of the amount deposited by you in the OD account.

      3. answer to question 2: Paying full EMI or pre-EMI is entirely up to you. while doing the documentation for the home loan, the bank will ask you to choose either of the options. I suggest that you weigh the pros and cons of both before making a decisions. Here’s a quick read on the same

      4. answer to question 3: Maxgain is available only on a floating interest rate. The latest interest rate for Maxgain on MCLR basis is 9.55% for men, and 9.50% for women borrower (primary).

      I hope this information has been helpful, do feel free to write in regarding any further queries.

  9. sasirekha
    April 30, 2016 at 2:53 pm
    Reply

    Hi Tarani,

    I have a clarification on MAX Gain as follows,
    Assuming My Loan Amount is 30lacs and i have parked 30Lacs in my OD account. now there will not be any benefit in extra deposits to my OD account.In this case can i Down size my Loan by paying 10Lacs towards my Loan 30Lacs…Please Clarify..

    • Tarini
      Tarini
      June 7, 2016 at 8:24 pm
      Reply

      Hey Sasirekha

      I apologize for the delayed response to your comment. Regarding your query; yes, in such a scenario, you can go ahead an prepay a part of your home loan. To prepay in Maxgain, you will have to make sure that the prepayment amount equals a minimum of 20% of the outstanding principal amount (as per SBI rules and regulations related to the product).

  10. Kranthi
    February 16, 2016 at 3:58 pm
    Reply

    Hi Tarini,

    Have recently taken constructed flat which is registered on my name on last month, now planning to take SBI Max gain home loan, Do we have a option for the taking home Loan.

    Regards,
    Kranthi.KC

    • Tarini
      Tarini
      February 17, 2016 at 2:43 pm
      Reply

      Hey Kranthi

      Since you have already made the purchase, you will not be eligible for any home loan, you can however apply for a mortgage loan. I hope this helps 🙂

  11. Naguleshwaran
    January 11, 2016 at 8:26 pm
    Reply

    Hello , I took Loan of 21,00,000 and choosed the Maxgain . I deposited the 3,000 so that i thought My interest will be calculated based on that and i can withdraw when i needed it . But i cannot see that 30,000 in the available balance and it shows as 0.

    The statement is not clear and our branch manager told once after my EMI taken i can see it back but strange is they did not take the EMI from my account this month even though i have sufficient balance .

    Do u have any idea ? and i can really say that even SBI branch managers dont have much idea on Max gain product

    • Tarini
      Tarini
      January 18, 2016 at 1:43 pm
      Reply

      Hey Naguleshwaran

      This is very strange. If you could send me an account statement at tariniATswitchme.in, then I may be able to help you out better.
      Further, do you see a difference of 30k between your drawing power and book balance? If yes, then you have nothing to worry about as the surplus money deposited by you is reducing the amount on which interest payable is calculated (the book balance). It may be a technical error in this case.
      Do let me know 🙂

  12. Vivek
    January 9, 2016 at 11:34 pm
    Reply

    Hi, I have “SBI Maxgain” housing loan with State Bank of Mysore (SBM). Though SBM says “SBI Maxgain” loan is same across all associate banks, I see lots of differences between SBM and SBI. There is no EMI concept in SBM – There is no option of pre-payment towards principal. They say that there is a standard monthly limit reduction, as given in the sanction letter – but I see that this also changes every month. Overall, things are not very clear with SBM – As per this blog, things should be very clear – I have also got a SBI’s maxgain loan statement from one of my colleague, which shows EMI transaction, and pre payment transaction, and things seem to be very clear, in SBI. Not sure, if “SBI Maxgain” product is same across all associate banks, why are these differences. SBM management viz., branch manager, SBM’s RACPC, and operations are not able to give clear answers about my above concerns. If you can clarify these, that would be great. In addition, I have these questions… Can I shift/transfer my housing loan from SBM to SBI? If yes, can I approach SBI’s RACPC directly? Secondly, I have SBI life policy associated with this housing loan. If I move to SBI, is it possible to associate SBI life policy account also to SBI loan account? Who does this? Will I have to approach SBI life for this?

    • Tarini
      Tarini
      January 27, 2016 at 5:11 pm
      Reply

      hey vivek

      Even though SBM is assiciated to SBI, there are several differences in the policies of both banks and the way their products are designed. So its quite possible that SBI MAxgain works differently in both banks.
      Moving on to your second query, yes you can go ahead and switch your home loan to SBI. You will just need to pay a processing fees and some registatrion charges to complete the process. You can go ahead and shift your Life Policy account too, to SBI along with the home loan for a minimal charge. There is no need to approach SBI Life for this. SBI will take care of it while switching your home loan.
      To switch your home loan, you will need to approach an SBI branch first and then it will get transferred and processed by the RACPC.
      I hope this helps 🙂

  13. Abhay
    January 6, 2016 at 8:18 pm
    Reply

    Hi,

    If the loan amount is partially disbursed for a underconstruction property. And, i started to pay full EMI even in underconstruction stages..

    In such case, it seems like my drawing power is not reduced as per schedule. Its remains same. What is the reason?

    • Tarini
      Tarini
      January 8, 2016 at 2:35 pm
      Reply

      Hey Abhay

      If you are paying full EMI then the drawing power will reduce in some amount with each EMI payment. Could it be that you can’t see the amount reduce as there have been a few subsequent disbursals too?

  14. Krishna
    December 11, 2015 at 5:45 pm
    Reply

    Hi,

    If the loan amount is partially disbursed for a underconstruction property. And, i started to pay full EMI even in underconstruction stages..

    In such case, it seems like my drawing power is not reduced as per schedule. Its remains same

    Im guessing, even though u pay full EMI monthly before full disbursement , the drawing power will not change…

    is that right?

    • Tarini
      Tarini
      December 14, 2015 at 3:42 pm
      Reply

      Hey Krishna

      If you are paying full EMI, then your drawing power will reduce, irrespective of whether its an under construction property or not. Please check the amortization schedule provided by the bank. Your drawing power should reduce in the same proportion as the principal component of the EMI mentioned. Please verify against the same.

  15. Murthy MVVS
    December 10, 2015 at 7:38 pm
    Reply

    Hi,

    I have an SBI Max gain account since more than 18 months. Presently I have parked an extra amount of Rs.80,000/- in my OD account. My SB account has Rs.2000/- only. The request to deduct my EMI (of Rs.20,000/- ) was submitted to be 5th of each month. The interest is debited to my account by the last day of the month. As I do not have sufficient amount in my SB account, do the bank automatically deduct from the extra amount that I had parked in the OD account or not? I observed that in the current month it has not deducted it – or is my observation wrong?
    Please note that recently I am receiving SMS alerts to pay my EMI or else some penal interest @2% is levied. Is the penal interest yearly or monthly.

    With thanks and regards,
    Murthy

    • Tarini
      Tarini
      December 25, 2015 at 4:17 pm
      Reply

      Hey Murthy

      Please pay your EMI immediately to avoid any penalty and negative impact on your Credit score! The additional penal interest is calculated on a monthly basis.
      SBI deducts EMI only from the SB account, it doesn’t deduct money from your OD account, this account can be operated only by you.

  16. Mrinmoy
    November 20, 2015 at 2:09 pm
    Reply

    How can I calculate Installment payment for a under-construction property?
    In above SBI Maxgain Amortization Schedule I am not able to proceed with installment payment and fixed interest rate.

    • Tarini
      Tarini
      November 23, 2015 at 6:36 pm
      Reply

      Hey Mrinmoy

      The amortizaion scheduler provided along with the blog post works with a floating interest rate only for a borrower making full EMI payments, unfortunately its not designed for a fixed interest rate home loan. Also, are you sure you are on a fixed interest rate in SBI Maxgain? Further, are you paying a pre – EMI or full EMI? If its a pre-EMI then it’ll be an easy calculation, you just need to calculate the amount of compound interest you need to pay on the total disbursed amount (this will have no principal component).

  17. sharathsysrath
    November 19, 2015 at 9:44 pm
    Reply

    Hi Tarini,
    Your post is very useful.
    I have a SBI regular home loan with my mother as co-applicant. The loan of 24 lakh was taken in Dec 2013 and I have already paid back 5.5 lakh as part of prepayment until Nov 2015.
    I am a software engineer by profession, I got to know about this SBI Maxgain account recently and I am realizing that this is the best option for me as I will be having some surplus amount every now and then.
    But, my loan manager did not respond properly, and gave a negative opinion about changing my regular home loan to SBI maxgain. Somehow, I feel I really want to switch this loan to such loan account with benefits of parking money.
    Can you suggest me, how can I defend with my Branch manager, is it possible to switch my regular home loan within SBI at all ? or is there any other option ?

    Your suggestion/feedback is highly appreciated , thanks in advance !

    • Tarini
      Tarini
      November 23, 2015 at 7:17 pm
      Reply

      Hey sharathsysrath

      I regret to inform you that its not possible to switch within SBI to the SBI Maxgain scheme due to a technical error in their internal system. There is no other way around this :/

  18. Nirav
    November 11, 2015 at 1:20 pm
    Reply

    Hi,

    I have HDFC home loan and now after 1.5 years planning to move from hdfc to sbi maxgain due to its benefit.

    But before starting any procedure i have following queries, can you help to resolve it??

    1. Any limit for no. of repayment in whole tenure?

    2. Any charges for repayment and what would be the maximum and minimum limit for repayment?

    3. If I am putting some amount in my OD account then as per maxgain benefit I will have saving on interest. but I have seen in multiple forums that having balance in OD will neither decrease your emi amount nor decrease your tenure. so what is the gain here and where that benefited saving amount gone??

    4. If I am freezing my balance by transferring balance from SBI saving a/c [OD] to max gain home loan account, than will it reduce my emi amount or my home loan tenure?

    Thanks,
    Nirav

    • Tarini
      Tarini
      December 9, 2015 at 3:22 pm
      Reply

      Hey Nirav

      Here’s a clarification to all your queries :

      1. Yes, you can make only 2-3 repayments in the entire home loan tenure. The value of these repayments will need to be around 20% of the outstanding loan amount at the point of time. However, you can still get the benefits of repayment by parking your surplus money in the OD account. This will help reduce your book balance (the amount on which interest is calculated) in the same way as a prepayment would.

      2. No, there are no repayment charges/ prepayment charges in SBI Maxgain.

      3. Yes, it is true that the balance parked in your OD account will actually keep your EMI payments just the same, but it will also help reduce the interest that you pay on the entire loan. So essentially by parking money in your OD account, you can close your home loan sooner than the actual loan tenure and the constant EMI payments will cover for the decrease in interest payments – helping you close sooner. I hope this clears the confusion.

      4. I am not sure about the usage of the term – “freezing my balance by transferring balance from SBI saving a/c [OD] to max gain home loan account”. Could you please elaborate? It will help me answer your query better. Thanks 🙂

  19. Dev
    October 24, 2015 at 9:51 pm
    Reply

    Dear Sir,

    I have applied for home loan of 40Lac from SBI , they suggest me SBI Max Gain, I could not able to understand the benefit of the same, I have already made 2 payment from my saving for the under construction flat and will try to make another 2 instalment from my savings, which means i may be using 30 lac only from loan amount, can you explain me what is a benefit of SBI Max gain.

    Also SBI asked me to take life insurance for 40Lac for 20yrs which is costing me around 1.14Lac and it is non-non-refundable, can you suggest me any other best insurance at low cost or on refundable pls.

    • Tarini
      Tarini
      October 26, 2015 at 12:17 pm
      Reply

      Hey Dev

      The benefit of SBI Maxgain is that it comes with an over draft (OD) account. This account helps you save on your EMI payments, this is how it works:
      In Maxgain you will see the following accounts-
      book balance: This is the amount on which you pay the interest on. Its calculated as – drawing power minus available balance.
      drawing power: This amount is the total loan amount that has been disbursed to you.
      limit: This is always equal to the drawing power.
      available balance: This reflects the amount of balance you maintain in your OD account.

      So by parking all your surplus money in the OD account (even if for a short duration), you can save substantially on your interest payments. Do note that the interest rate for Maxgain has been increased to 9.80 for general borrowers, with a reduction of .5% for women borrowers.

      Regarding the life insurance, its best to take an insurance that covers all your EMI payments in case of any unfortunate incident. although its compulsory to take an insurance while taking a home loan from SBI, you don’t need to take one from SBI itself, you can explore other options too.

      About the reduced loan amount, you can ask SBI to disburse only 30 lakhs, that should not be a problem 🙂 I hope this helps!

  20. Anand Sisupalan
    October 14, 2015 at 5:40 pm
    Reply

    Me and wife have around 22 years back availed a loan which was paid off in ten years. Then I had availed another loan in 2005 which was sjhortclosed. Both with HDFC. Now I am trying to avail another loan from SBI for a property jointly owned by may daughter, wife and me. But SBI says max gain they can’t give as through principal borrower is my daughter (who had never availed loans) as me and wife are coapplicants and so max gain cannot eb availed. only normal loan. So I had to give consent for the same. Is this right? Is there a way out to avail the maxgain loan

    • Tarini
      Tarini
      October 14, 2015 at 7:36 pm
      Reply

      Hey Anand

      The reason given by bank is very unusual as you don’t need to an existing borrower to apply for Maxgain. Its quite possible that the banks may have refused to give you a loan as they refrain from lending to blood related co-borrowers. I’d advise you to approach another branch of SBI, you may have better luck there.

  21. Nagesh
    October 13, 2015 at 12:48 pm
    Reply

    Hello Sir,

    I am planning to go for Max Gain next month for Composite Loan (Plot + Construction) for 45 Lakhs in this regard i wanted to know will I be eligible for Income Tax Exemption for the repayment made towards the loan and to what extent ? A detailed explanation will be of great help please.

    • Tarini
      Tarini
      October 13, 2015 at 1:55 pm
      Reply

      Hey Nagesh

      You can claim tax benefits on the all EMI payments once you have taken possession of your property. After possession, you can claim tax benefits in 5 equal installments over the next 5 years, only if the construction is completed with 3 years of taking the loan. If the construction phase exceeds this time frame, then you will able to claim tax benefits on payments made during this period only up to a limit of Rs. 30,000. I hope this helps 🙂

  22. pradeep
    October 1, 2015 at 9:28 pm
    Reply

    hi , i want to take 80 c advantage with sbi maxgain how is it possible

    • Tarini
      Tarini
      October 7, 2015 at 7:16 pm
      Reply

      Hey Pradeep

      You can avail tax benefits under 80C by attaching the tax certificate provided by your bank along with your income tax return file, the procedure is the same for all home loans. I hope this helps 🙂

  23. meet
    September 29, 2015 at 4:16 pm
    Reply

    Hi,

    How to get the net banking ID & Password for SBI Maxgain Home laon A/c.

    Will SBI saving Bank net banking A/c password will work for SBI maxgain too ?

    • Tarini
      Tarini
      October 1, 2015 at 3:14 pm
      Reply

      Hey Meet

      The login credentials for SBI Maxgain are different from the ones used for SB account, please ask your bank for the same, they should be able to help you out in this regard.

  24. amiit gupta
    September 26, 2015 at 11:01 am
    Reply

    Hello Sir

    I had borrowed home loan of 38 lacs under SBI MAX GAIN Scheme on Jan 2013. currently my EMI is 37,429 INR @ 9.80 % interest, I have paid 1,40,344 INR towards Principal amount till date. my current Book Balance is (- 35,57,586.00 INR ) , Drawing power is 36,98,458 INR & available balance is 1,40,872 INR.

    Can you please suggest me whether i should increase my EMI to 42,000 INR Per month or should i keep this extra money ( 4,000 per month always) in OD account as this is a max gain account , instead of increasing my EMI. waiting for your suggestion. I want to reduce my tenure.

    Thanks
    Amiit G

    • Tarini
      Tarini
      October 1, 2015 at 3:00 pm
      Reply

      Hey Amiit

      Since you have a Maxgian account, increasing EMI by 4k per month or parking the amount in OD account every month will technically have the same effect. Here are a few facts associated with each;
      Increasing EMI:
      1. During your entire loan tenure, you will be allowed to reset your EMI/ tenure only 2 times.
      2. If you are sure that you can finance the increased EMI for the entire loan tenure, then going ahead with this option seems feasible as it will save you the extra effort of maintaining money in the OD accout.

      Parking money in OD account:
      1. On the contrary, by putting the money in OD account, you will still have the freedom to withdraw it in times of emergency (which will not be possible in the case of increased EMI).
      I hope this information helps you decide the best option suited to your needs 🙂

  25. sree
    September 22, 2015 at 7:26 pm
    Reply

    Hi Team,

    Please clarify my queries and provide suggestions. Thanks

    I have taken SBI MAX GAIN (Joint loan) during April 2015 with drawing power of 30 L.They have transferred half of the amount to the builder. PFB balance details.

    Book Balance -15,70,563.00
    Available Balance 14,29,437.00
    Limit 30,00,000.00
    Uncleared balance 0.00
    Drawing Power 30,00,000.00
    Currency INR
    Rate of Interest (% p.a.) 9.8%

    Margin % /own contribution is more from me (38L) , I couldn’t get more loan amount passed initially.
    I need topup loan to complete my margin payment or reduce it.

    1. SBI agent told that top up loans cannot be availaled for under constrction propery . pls let me know if there is any plocy like that.
    2. if i need topup of 5 to 10L what are are best options (personal or nay other bank loan)
    3. Is OD account is same as sbi loan account ? Presently I can see loan account and one sving account with my login .

    • Tarini
      Tarini
      October 1, 2015 at 4:26 pm
      Reply

      Hey Sree

      Here’s a clarification to all your queries:
      1. No, top up loans can be availed for under construction properties too. Generally top up loans are given only for home improvement/ home extension related activities (by SBI) and cannot be used as substitutes to personal loans.
      2. Since you will not be able to take a top up loan for the purpose of financing the margin payment, you can look at taking a personal loan or loan against property (LAP/ mortgage loan).
      3. No, your OD account is different from the loan account. The OD account is where you can park the excess funds and withdraw money from it anytime you like, its balance is reflected under available balance. Please contact your bank regarding the problem you are facing post login into your account, they should be able to guide you best.
      I hope this helps 🙂

      I hope this helps 🙂

  26. Jeetesh
    September 22, 2015 at 7:13 pm
    Reply

    Hello Tarini,

    I have SBI MG Loan of 18.5 Lakhs in August 20111. My current interest rate which shows in my online portfolio is 10.2%
    Now, current interest rate is 9.75%.
    1. Please let me the procedure to change the interest rate.
    2. Shall I need to contact branch or shall I directly go to RACPC office.
    3. How much will be the processing fees on 18.5 Lakhs.

    Thanks,
    Jeetesh

    • Tarini
      Tarini
      September 23, 2015 at 7:22 pm
      Reply

      Hey Jeetesh

      As per SBI’s public declaration after the recent rate cuts, the new lending rate of 9.75% will apply to all existing and new customers. Please contact your branch regarding the same, SBI should have reduced your interest rate automatically. Further, you will not have to pay any processing fees for this as this facility has been extended to all existing customers as per SBI regulations. I hope this helps 🙂

  27. uma
    September 10, 2015 at 8:00 pm
    Reply

    what is income eligibility for maxgain home loan? suppose my annual income is 150000,and my husbands income also 150000. how much maxgain loan we can get?

    • Tarini
      Tarini
      September 14, 2015 at 8:18 pm
      Reply

      Hey Uma

      Determining eligibility of a borrower is a matter of internal policy. While determining eligibility, the banks consider several other factors such as your credit score, existing loans/ mortgages, previous overdues (if any), your age, several other mandatory documents and employment status (self employed, salaried – professional, etc.). So I believe the bank will be able to guide you best in this regard. I hope this helps 🙂

  28. ARUN A.C.
    August 14, 2015 at 2:06 pm
    Reply

    My wife and myself are joint owners of site and want go for SBI max gain home loan around 60 lakhs

    Both of employed and want to repay at 60 and 40% share and take income tax benefit accordingly.

    we have service left my wife 7 years and myself 4 years. We wanted to clear loan by 2019

    if loan under max gain advantages or not. We also pay our savings besides installments to loan account and

    reduce interest and close loan with 7 years/ Whether it is advantages to go for SBI max gain pl advise.

    My wife in applicant no one she may get interest advantages is it 9.7 or more. whether we need cover house in

    SBI insurance, what is processing fee.

    PL advise

    ARUN

    • Tarini
      Tarini
      August 14, 2015 at 8:41 pm
      Reply

      Hey Arun
      Here’s a clarification to all your queries:

      1. Yes, if your wife is the first owner of site and applies as first applicant, then you will be eligible to get an interest rate of 9.70%.
      2. The biggest advantage you can avail through Maxgain is of the OD account. You can park all your surplus savings here, this will help reduce your total interest outgo considerably and once your book balance (the amount on which interest payable is calculated) is equal to your available balance (OD account balance), you can close the loan.
      3. Yes, you will need to get your home insured, its a standard requirement by SBI. However, its not compulsory to take an insurance from SBI itself, you can explore other options and chose the most suitable one for you.
      I hope this information helps you decide better 🙂

  29. Sanket Karmarkar
    July 25, 2015 at 4:06 am
    Reply

    Hello Team

    Great work!!!!

    I have a query I already have a MG home laon from SBI and when we got the loan the intrest rate was 10.15 but after the RBI reduced repo rate intrest got reduced for SBI MG home loan in general and also My home loan intrest % was reduced when I see online in My OD. I read the question above where it is mentioned that we specifically need to switch to lower intrest rate so is it showing wrong in online site and do I really need to switch to lower intrest rate to get benefit

    Regards
    Sanket Karmarkar

    • Tarini
      Tarini
      July 28, 2015 at 6:40 pm
      Reply

      Hey Sanket

      Thank you for the appreciation 🙂
      Regarding your query; usually banks offer lowered interest rates to new customers only while old customers continue paying the high (previous) rates. However, this time SBI decided to slash rates for all their borrowers (new and old alike) at once. This is the reason you are seeing your EMI reset to 9.75%. So there is no need for you to switch in this case.

  30. Viswanath
    July 20, 2015 at 12:05 pm
    Reply

    Hello,
    I have an SBI MAX GAIN Loan amount of 29L completely disbursed.
    Currently my account details shown as below.
    Book Balance= -27,22,984
    Available Balance= 1,75,749
    Limit=28,98,733
    Uncleared balance=0
    Drawing Power=28,98,733
    Rate of Interest=10.00%

    I’m paying full EMI from beginning.

    My queries:
    1. Why Limit and Drawing Power show’s same amount even though final disbursement of loan amount three months back ie.march 2015.
    2. Only Once i have transferred 35k to my Loan account from my SBI Saving account. But my available balance shows 1,75,749. whether this amount is saved principal along with 35K?
    3. Now If i transfer 50k from available balance to my SBI saving account, whether i will be charged interest for that amount?
    4. Apart from 29L disbursement another 30K been debited for Property insurance from Loan account. where is amount is taken from?
    Is it from my available balance.

    Thanks is advance for the help!

    • Tarini
      Tarini
      August 12, 2015 at 7:01 pm
      Reply

      Hey Vishwanath

      Please find a clarification to all your queries below:
      1. This is very unusual, please get in touch with your bank immediately. They should be bale to help you out in this regard.
      2. Any amount transferred from savings account to loan account gets deposited in your OD account. This is reflected by available balance. Any amount deposited in your OD account helps reduce the amount on which you need to pay interest on (book balance).
      3. No, you will not be charged any interest on debiting money from your OD account. The sole purpose of the OD account is to enable all Maxgain borrowers to park their surplus funds in the account so that it contributes to reducing their total interest outgo. You can withdraw money from this account anytime you like. You can even use this account to direct your other bill payments etc.
      4. I believe the bank will be able to help you out best in this regard, please get in touch with them as soon as possible.
      I hope this helps! 🙂

    • Krishna
      December 11, 2015 at 5:50 pm
      Reply

      You have Available of 1.7L which means there’s some amount which might not disbursed…. i presume, only after full disbursement the draawing power gets reduced for EMI payment….

      Also, let me know if its sorted out?

      Thanks

      • Tarini
        Tarini
        December 14, 2015 at 3:14 pm
        Reply

        Hey Krishna

        I’d like to take the liberty to correct you here. Available balance reflects the balance of deposits made by you in the OD account.
        IF you are paying full EMI, then the drawing power will reduce irrespective of whether the full home loan has been disbursed or not. However, if you opt for the partial EMI option, then the drawing power will start reducing only after the partial EMI payment period ends.

  31. Goldi Mishra
    July 16, 2015 at 4:28 pm
    Reply

    Bank does not provided me ATM card for my Max Gain Acc. saying that it’s a OD account they will not provide ATM card for the same. Kindly reconfirm, is it true??

    • Tarini
      Tarini
      July 20, 2015 at 12:43 pm
      Reply

      Hi Mr. Mishra

      This is untrue, all official sources of SBI confirm that all branches issue ATM cards for Maxgain OD accounts. Kindly check with your bank again. If need be, please approach the higher officials.

  32. Goldi Mishra
    July 16, 2015 at 4:13 pm
    Reply

    Hi,
    I have a Max Gain Home Loan of 1935000 paying EMI of 19400 current interest rate charging is 10.2%, but as per today interest rates of same scheme is 9.7%. Please suggest will it be beneficial to change the Interest rates to 9.7% and what is the procedure? What is the benefit if I do?

    • Tarini
      Tarini
      July 20, 2015 at 5:14 pm
      Reply

      Hi Mr. Mishra

      Although going by the interest rate you are paying, it looks like you will benefit from switching to a lower interest rate. But since you haven’t mentioned the remaining tenure, it won’t be possible for me to calculate the exact savings in your case. Hence I suggest that you use our balance transfer calculator to see your exact savings and all the costs involved in the process. You could hire us to do the entire process for you too 🙂

  33. Amit
    July 16, 2015 at 3:14 pm
    Reply

    Hi Tarini,

    This is the best information I got till now about SBI maxgain.
    Your efforts and patience is highly appreciated.
    I have below set of questions:
    Which one of the two option is recommended by you?

    Case 1: I pay currently EMI of 50k. I can increase EMI by 10k more for every month from now onwards.
    Is it better to increase EMI in maxgain (which in turn will reduce my home loan tenure)

    Case 2: Instead of increasing EMI, can I prepay 10k every month? I believe prepay will directly reduce principal amount unlike EMI which has interest component. Is this allowed in maxgain? If yes, how?

    Thanks for your all valuable information.

    • Tarini
      Tarini
      July 20, 2015 at 5:27 pm
      Reply

      Hey Amit

      Thank you for the appreciation! 🙂

      Regarding your query, I believe it will be best for you to ask the bank to reset your EMI to 60k as in Maxgain, a prepayment is treated as a deposit in your OD account. Though it works exactly as a real prepayment, by reducing your book balance (the amount on which you pay interest), the only drawback is that SBI will not add the amount to your account statement, due to which you will not be able to claim any TI benefits on that amount.

      So if you’re sure that you will not be needing the extra 10k that you are willing to pay every month, in the near future, you can ask them to reset your EMI. Otherwise, parking that extra 10k in your OD account every month is teh next best alternative.

      I hope this helps!

  34. Arun
    July 9, 2015 at 1:07 pm
    Reply

    Hi Tarini,
    kindly share excel sheet which helps u to calculate expected closure year based on our use plan thanks

    • Tarini
      Tarini
      July 23, 2015 at 1:26 pm
      Reply

      Hey Arun

      Please find the same as an attachment in the mail ID provided by you.

  35. Santosh
    July 8, 2015 at 12:36 pm
    Reply

    hi Tarini,
    Really nice to see all your replies. I have question about my SBI Maxgain Home Loan account. I took loan of Rs. 23 lakh in 2010. Initial two year the rate of interest was 8% and 9% for the third year and floating after that. It was 11. something hence I paid Rs. 8000/- and they changed the rate of interest to 10.3 last year. However now SBI home loan rate of interest is 9.75 for loan below 75 lakh, but in my account it still shows 10%. One of my friend also has maxgain loan account and in his account changed automatically to 9.8. Please let me know whether 10% in my case is correct. Also let me know whether I can get 9.75% rate of interest by paying some charges. I heard that now a days banks are not charging for such type of change.

    • Tarini
      Tarini
      August 5, 2015 at 3:06 pm
      Reply

      Hey Santosh

      This time when SBI decided to slash rates to 9.75%, it announced that this will be extend to all existing customers too, along with being offered to new customers. So if the rate hasn’t been reduced for your loan yet, you should contact your branch.
      Regarding your second query; yes, nowadays its possible to switch your home loan to a lower interest rate by paying a nominal processing fees. In your case this should not be necessary as SBI has publicly announced rate cuts for all customers. I hope this helps 🙂

  36. Parashar Tabib
    June 25, 2015 at 5:54 pm
    Reply

    Hi Tarini,

    I have SBI Maxgain Loan account for which full disburstment is done. I want the EMI to be deducted from SBI credit card I have so that I can utilise EMI amount for more 45 days 🙂 Is there any way I can do this?

    • Tarini
      Tarini
      July 1, 2015 at 12:29 pm
      Reply

      Hey Parashar

      Unfortunately SBI doesn’t have an ECS which allows them to make deductions from the credit card. So to pay your EMIs you will have to maintain balance in your savings account around the time of deduction.

  37. Vivek
    June 19, 2015 at 12:23 am
    Reply

    Hi,
    My questions…

    1 – Is max gain home loan same across all State Banks? (like, SBI, SBH, SBM etc etc) Or, can there be differences in this product offers / features??
    2 – I understand that, pre-payment towards principal is possible. How to do that? (Just parking amount in the account is not treated as pre-payment – right?) And, at the year end, hope, the statement show the pre-payment amount so that we can claim 80C
    3 – I read that people move (additional / excess / parked) amount out to some other saving account at the time of EMI payment date. I am not understanding the logic behind this. Is it because (a) hoping that saving account has standing instruction to pay (max gain) loan account and so they move money to savings account, to make it available for SI execution? or (b) If I leave money in max gain loan account on the date of EMI, will it adjust the parked amount towards principal?

    Thanks in advance for your clarifications.

    • Tarini
      Tarini
      June 19, 2015 at 1:07 pm
      Reply

      Hey Vivek

      Here’s a clarification to all your queries:
      1. Maxgain home loan offered by SBI, is the same across all states.
      2. In Maxgain, all your prepayments get parked in your DO account, effectively reducing your book balance. However, this does not reflect in the account statement, which means that you will not be able claim tax benefits on it.
      3. In Maxgain, one of the best ways to utilize it fully is by parking all your surplus funds in the OD account, and directing all your bill payments through it. However, your monthly EMI payments cannot be deducted by SBI from your OD account. This is why most borrowers move some amount to the savings account when their EMI is due.
      And you’re welcome! 🙂

  38. Vivekanandan
    June 13, 2015 at 4:11 pm
    Reply

    Hi,

    As my flat is under construction, I couldn’t withdraw the huge sum (consider this as my equity contribution) parked in my OD account. Can this amount be debited by my builder during the construction period?

    Regards
    Vivekanandan

    • Tarini
      Tarini
      June 15, 2015 at 4:24 pm
      Reply

      Hi Mr. Vivekanandan

      Any amount parked in the OD account can be withdrawn only be you. Unfortunately, you will be able to withdraw money only once the construction is complete :/

  39. Shirish
    June 3, 2015 at 8:45 am
    Reply

    Hi ,

    Cam somebody help me on whether i can do part payment or reduce the Limit on SBI Maxgain loan acount ?
    The bank has conveyed me that part payment /reducing limit can be done only twice in the tenure .

    I was really surprised to hear this .
    Other Banks allow prep-payment multiple times…Why does Maxgain not have this provision ?

    Yes the OD account has liquid amount , as n when you deposit . you can withdraw .do not w
    but that is not helping me .. as i tend to withdraw the liquid cash as n when required

    Please give your inputs as i do not want to use the liquid cash and reduce the limit .

    Thanks,
    Shirish S (9823138249)

    • Tarini
      Tarini
      June 15, 2015 at 5:17 pm
      Reply

      Hey Shirish

      I believe you are being misguided by bank officials. We have had plenty of such cases where Maxgain borrowers are told that they can prepay only twice. This is not true. We have checked with higher officials, time and again regarding their prepayment policy in maxgain, they maintain that there are no such restrictions.
      The best way to tackle your situation is to prepay a small amount every month with your EMI payments.
      I hope this helps!

      • Shirish .
        June 16, 2015 at 11:58 am
        Reply

        Hello Tarini,

        Thanks a lot for your help .
        I must say – you are doing a wonderful thankless job by helping people like me .. appreciate your help .

        • Tarini
          Tarini
          June 16, 2015 at 5:09 pm
          Reply

          Hey Shirish
          Thank you for the kind words. We are always happy to help 🙂

      • anir
        August 10, 2015 at 12:11 pm
        Reply

        I have taken SBI Maxgain Homeloan. But finally I have taken disbursement of little lesser amount than the initial loan amount sanctioned. Now, after taking possession of my apartment when I asked SBI branch for transaction rights, they are saying I need to get the limit reduced to actual disbursed amount and only after that they will provide the transaction rights. I wrote an email to SBI RACPC but no response. I am out of town now, hence please suggest what I can do to get the transaction rights.

        • Tarini
          Tarini
          August 10, 2015 at 1:29 pm
          Reply

          Hey Anir

          SBI is generally slack in responding to emails, I suggest you call the officials at the RACPC and follow up with them personally or go down to follow up. I hope it works out for you.

          • anir
            August 10, 2015 at 2:28 pm

            Thanks Tarini. Can you please confirm if SBI always deposits the “ORIGINAL” Possession Letter and not a copy of the same?

          • Tarini
            Tarini
            August 11, 2015 at 5:37 pm

            Hey Anir

            Yes, SBI deposits only original documents, they do not accept copies of any documents. Have you managed to follow up with your bank yet?

          • anir
            August 11, 2015 at 8:37 pm

            Thanks tarini for your response. I did follow up with the bank regarding transaction rights. But they stick to the point that I need to get the loan limit reduced + submit original possession certificate, then only I can get the transaction rights

          • Tarini
            Tarini
            August 12, 2015 at 3:42 pm

            Hey Anir

            I believe there isn’t much that we can do in this regard, other than complying with all the demands the bank makes. I hope this works out for you 🙂

          • S Sivaperumal
            September 23, 2015 at 3:47 pm

            Dear Ms Tarini

            Accept my appreciation for the supports. It is wonderful service you are doing, because it is very tough to get proper response from any bank.

            I have a SBI Max Gain Loan Account and i had drawing power of Rs.19.69 Lac, when started last year. When i noticed today the drawing power came down to Rs.19.35 Lac, i did not notice this change in the drawing power. How it is getting changed? I believe it is principle part?

            Thanks

            S.Sivaperumal

          • Tarini
            Tarini
            September 23, 2015 at 6:30 pm

            Hey S.Sivaperumal

            Thank you for the appreciation, we’re always happy to help 🙂 Regarding your query, yes you’re right, the drawing power decreases as you start paying your EMIs and the principal amount starts reducing. I hope this helps.

  40. Rohit
    May 31, 2015 at 8:46 pm
    Reply

    Dear Team,

    My Available Balance is getting reduced every month by 5k or 6k without any disbursal.

    My total SBI HL (Maxgain) sanction amount was 20,45,000 on 31st March 2015. Total disbursed amount is 16,48,515 on 31st March 2015. Hence available balance should be 3,96,485 (20,45,000-16,48,515).

    Please find below the status of Available Balance:

    On 31st March 2015, Available Balance was 3,96,485.
    On 30th April 2015, Available Balance was 3,89,157.
    On 31st May 2015, Available Balance is 3,84,062.

    Every month my available balance is getting reduced by 5,000 or 6,000 without any disbursal.

    I am paying Full EMI (22,164) from starting.

    Can you please help me understand the reason for the same.

    Thanks in advance.

    • Tarini
      Tarini
      August 12, 2015 at 7:31 pm
      Reply

      Hey Rohit

      I think you are unclear about the meaning of all the terms in your account statement, here’s what they denote:
      1. drawing power: this is the total outstanding principal amount.
      2. limit: this is the maximum amount that you are eligible to borrow, this is always equal to your drawing power.
      3. available balance: this reflect the balance of your OD account (money deposited by you) and any other interest accrued.
      4. book balance: this is the difference of drawing power and available balance. This is the amount on which interest payable is calculated on, on a daily basis.
      5. Your available balance is not tied to loan disbursal. Only you are authorized to credit/ withdraw money from the OD account. This is a very unusual situation, please contact your bank regarding the same. They will be able to guide you best, in this matter.

      I hope this helps.

  41. Deb
    May 28, 2015 at 5:27 pm
    Reply

    Hi,
    I hold a max gain home loan account in SBI. 95% of agreement value has been disbursed to the builder. Balance 5% on fit outs is expected to take place after one year, which I am planning to pay of my own.

    To my understanding, withdrawal from OD account under Max Gain scheme can be availed only after final disbursement. Can you please advise me if I can ask the bank to consider the loan disbursed till (95%) now as final – so that withdrawal facility can be availed for my account.
    Regards,
    Deb

    • Tarini
      Tarini
      August 12, 2015 at 7:33 pm
      Reply

      Hey Deb

      Unfortunately, this cannot be done. SBI has a policy of giving transaction rights to Maxgain borrowers only after possession of property. Until then you can only credit money into the account :/

  42. Nani
    May 14, 2015 at 4:58 pm
    Reply

    hello team,

    I would like to appreciate your efforts in sharing or clarifying the information on home loans, awesome job !!

    I took a home loan in Oct’13 and the account type is showed as SBI YUVA HL MAXGAIN (OCT13), I am not clear if it is Yuva or Maxgain home loan I have. could you please confirm if I can leverage Maxgain account type features? I also see a deviation of Interest % which is almost 0.35% higher.

    Thank you in Advance.

    Regards,
    Nani Chandra

  43. Ashish Arora
    May 6, 2015 at 10:16 am
    Reply

    Hi, First of all, thanks for the good work that your team is doing by educating people about home loan

    My query is –
    I stay in Bangalore and have a home loan from Ahmedabad SBI for a property in Ahmedabad. The loan was a transfer from HDFC to SBI. During the transfer, bank told me that the account type will not be Max gain and can be done with some fees in future. Can you please tell me if I need to be present in person to get this done or is there any other procedure to get it done.

    • Priyanka
      May 6, 2015 at 6:44 pm
      Reply

      Hi Ashish,
      It depends on the loan amount. If it is above 20 lakhs you can avail Max Gain facility. If it is below that amount then Max Gain won’t be available. Hope that helps.

      http://www.SwitchMe.in
      +91-8108899980

      • Sam
        May 8, 2015 at 8:56 am
        Reply

        Hello Team ,

        My Query is –

        What is Lien amount? Why it is showing up on my account?

        Its has blocked by disbursement of next installment. I’m out of INDIA for a month so can’t visit Bank Office on immediate basis . Pl help.

        Description SBI H L MAXGAIN AUG12

        Book Balance -12,73,900.00
        Available Balance 48,199.00
        Limit 19,73,099.00
        Uncleared balance 0.00
        Drawing Power 19,73,099.00
        Currency INR
        Rate of Interest (% p.a.) 10.1%
        Lien Amount 6,51,000.00

        • Priyanka
          May 8, 2015 at 2:56 pm
          Reply

          Hi Sam,

          It would be great if you can visit your nearest branch and get it confirmed for the same.

          http://www.SwitchMe.in
          +91-8108899980

  44. chandra
    April 28, 2015 at 9:47 pm
    Reply

    Hi , I am chandrasekhar. I took loan of 37 lacs 2013 july. It is 77% of the proprty cost(at that time). I paid 1 year pre emi and 10 months of full emi. In between i got salary hike as well. Property is still under construction and will be finiahed by next couple of months. For remaining 3% and for interior work can I can get additional loan. My main focus is on the 3% which is around 1.5 lacs ,how I can get loan for that if i am eleigible now for top up?

    • Tarini
      Tarini
      August 13, 2015 at 1:18 pm
      Reply

      Hey Chandra

      You can apply for a top up loan in your bank. This will be treated as an additional loan and will not get clubbed with your existing home loan. Since you are taking a top up loan for home improvement, you will be able to claim tax benefits on it up to a ceiling of 30,000 per annum. Once you put in an application, the calculate your eligibility and get back to you. If you aren’t eligible for a top up loan in your bank, you can apply to other banks too. I hope this helps 🙂

  45. suyog s zawar
    April 17, 2015 at 6:25 pm
    Reply

    Dear Sir/Madam,
    Thanks for your valuable suggestions.
    Actually in my case my wife is first owner of flat that’s why we are eligible for 9.85% rate.
    I am quite disappointed with SBI’s Maxgain Loan due to following points:
    1. We are not allowed to change our EMI in Maxgain
    2. We are not allow to change loan repayment tenure.
    3. We can not change Maxgain to Simple Term Loan account.
    4. Because of above points and with changing base rate we only have to maintain sufficient cash to counter incresed EMI if base rate increased.(As our Loans are in Lakhs, our EMIs are in thousands, marginal change in base rates also reflects in Hundreds).
    5. As a thumb rule if applicable loan rate is 10% and our simple calculated EMI get increased by 100 Rs. than applicable EMI; we have to maintain 10000 Rs. in Maxgain to counter that( 100 times more money) which may not possible every time. Paying 100 Rs. extra every month is good and possible than maintaining 10000 Rs. in Maxgain. My main worry is that.
    Please correct me if any of above facts are wrong. Whether it is worthto reduce applicable interest rate by paying extra fees? As RBI already told that similar profile customer should have equal interest rates?

    • Tarini
      Tarini
      August 13, 2015 at 4:04 pm
      Reply

      Hey Suyog

      I believe you are being misguided in the following regard:
      1. You can reset your EMI for a limited no. of times in SBI Maxgain
      2. You can change the loan repayment tenure for a limited no. of times
      Regarding pt. 3, that’s true, you cannot convert from Maxgain to simple term loan.

      4. I am unclear as to how the above mentioned points force you to maintain excess balance. every month, the bank’s ECS will deduct a pre determined amount form your savings account, you need to maintain enough balance so that you are able to service these EMI payments. when the bank increase rate of interest, the choose to increase the loan tenure instead of EMI, as that requires resetting the ECS system. This holds true across all banks, and not just for SBI.
      5. I believe your assumption here is completely wrong. Further, following the latest rate cuts by SBI, it has publicly announced a reduction in interest rates for all new and existing customers, to 9.75%.
      I hope this helps.

  46. Nikita maheshwari
    April 17, 2015 at 10:46 am
    Reply

    Hi,
    I am Nikita. we had taken home loan of 30 years on 1/4/13 and amt was 3345000/-.As our salary increased we want to reduce the tenure & increase the emi, so our drawing power will get reduced. Can you tell us , is it possible for us and if yes what is the procedure for the same.

    • Priyanka
      April 20, 2015 at 6:28 pm
      Reply

      Hi Nikita,

      Yes, it is possible to switch and get a reduction in tenure. We only need the latest salary slip for the same.

  47. Shijil A
    April 13, 2015 at 10:19 am
    Reply

    Hi ,
    I have i have made my book balance as zero by parking equal amount to my OD account.
    Now my when my EMI get credited to this loan account (lets say 20000 is the EMI), my book balance will become 20000??

    Thanks
    Shijil

    • Tarini
      Tarini
      June 10, 2015 at 5:20 pm
      Reply

      Hey Shijil

      Since your book balance is zero, any EMI deducted by the ECS will get deposited in the available balance, so your available balance will increase by 20,000 every month (till the time you maintain zero book balance). If you are sure that you will not be needing the extra amount parked in your OD account in the near future, then you may consider foreclosing the home loan.

  48. Bhuvaneswari Sivakumar
    April 10, 2015 at 3:38 pm
    Reply

    Hi,
    Please help us. Amount if anything left in salary account is automatically deducted and transferred to max gain loan account. Why it is happening so. How to get it back? How to contact you over phone?

    • Ashwini Menon
      Ashwini Menon
      April 13, 2015 at 4:06 pm
      Reply

      Dear Bhuvaneswari,

      The bank should not be doing this. Please call us at +91 8108 899 980 for information on Home Loan Switching.

  49. Yogesh
    April 10, 2015 at 11:54 am
    Reply

    Hi Tarini/ Ashwini,

    I have a Max gain loan from SBI from June 2012. I have My Elder brother as a Guarantor only but all EMI is paid by me only. That time my eligibility was only for 27.43L loan. Now I am married and my wife also having good salary. My Questions are-
    1. Whether it is possible to Get top-up loan of 5L over existing loan to Add my wife for Joint acct for loan.
    So that She will also pay EMI and get tax benefit for this top-up loan.? So that I can remove my brother as Guarantor and add my wife for sharing loan.
    3. If top-up loan with My wife is possible where shall I contact and what documents is needed?

    Please Support So that I can proceed.

    Thanks
    Yogesh

    • Priyanka
      May 8, 2015 at 3:18 pm
      Reply

      Hi Yogesh,

      You can visit your SBI Loan branch and get the work done for the same.

      http://www.SwitchMe.in
      +91-8108899980

  50. Sanjeev
    March 29, 2015 at 11:51 am
    Reply

    Hi Tarini,

    Can I get top up amount on my already existing max gain loan?

    Regards
    Sanjeev

    • Ashwini Menon
      Ashwini Menon
      March 31, 2015 at 3:54 pm
      Reply

      Hi Sanjeev,

      We are happy to inform you that it is possible to get a top up loan on your existing Max Gain Loan account.

  51. Kiran
    March 9, 2015 at 8:42 pm
    Reply

    Hi Tarini,

    I have surplus amount in MAX-GAIN. Is it possible that EMI gets deducted from OD account(surplus part) itself instead of savings account? I have got mixed answers from SBI. First they said it’s not possible and if any branch is allowing it, it’s not right.
    When I told them that one of my friends’ savings a/c balance is zero and he can see that available balance goes on reducing(meaning EMI gets debited from surplus amount), then she said if you have no balance in savings, SBI takes it from Available balance(SBI won’t spare EMI).

    1. So I am very confused. Currently my EMI gets debited from my SBI savings account. I am wondering if I happen to move all money to OD, will SBI debit from OD automatically?
    2. Will they charge me any fee as SB a/c has zero balance?
    3. Will this debit from OD be considered as regular EMI(if it’s allowed).

    Thank,
    Kiran

    • Ashwini Menon
      Ashwini Menon
      April 1, 2015 at 3:21 pm
      Reply

      Hi Kiran,

      You should not face any issues if you pay your EMI on time. Also it is advisable to maintain Minimum Balance in your Savings Account.

  52. Ashwini
    March 9, 2015 at 11:20 am
    Reply

    Hi Tarini,

    I applied for home loan of 22 lakhs in SBI, i tried to take SBI max gain but SBI officials informed me that through that scheme I will get only 18 lakhs.

    So I applied for SBI yuva loan, through I can get till 21.5 lakhs.

    when i googled on this yuva loan scheme, i got information that “Only the interest amount is payable in the first 36 months. The regular EMI will start after 36 months.”

    1. So if i get my yuva loan sanctioned, i have to pay only the interest amount for first 3 years, my principal amount wont be reduced at all?

    2. after 3 years, the amount which i pay will be only for principal amount? or again i will be continuing with interest amount?

    3. if i pay the complete interest amount within 1 or 2 years, i can start paying the principal amount?

    Am not sure whether this is the right place to post my query, If am wrong, am sorry and suggest me to the correct forum where i can post my query

    Thanks in advance
    Ashwini

    • Tarini
      Tarini
      March 9, 2015 at 7:20 pm
      Reply

      Hey Ashwini

      Though your query is about a different product of SBI, we would be happy to help you out anyways 🙂
      Here’s a clarification to all your doubts:

      1. One of the features of Yuva Home Loan is that its meant for borrowers who are expecting an increase in income in the near future. This is the reason you are eligible for a higher amount under this scheme than Maxgain. So keeping that in mind, the bank has minimized your loan expense for the first 3 years by asking you to pay only interest on the entire loan amount i.e. 21.5 lakhs. This means that the principal amount will remain unchanged for this entire period. You can start repaying principal only after the completion of 3 years.

      2. After 3 years, you will be paying full EMI which will consist of both principal and interest component. You will need to pay interest on the remaining loan amount until the completion of loan (as is the case in regular home loans.)

      3. I don’t think that is an option here Ashwini. You will have to pay interest for forts 3 years, after which you can start repaying the loan.

      I hope this helps 🙂

      • Ashwini
        March 10, 2015 at 11:22 am
        Reply

        thank you so much tarini, sure it helps..i have one more doubt, say this loan is sanctioned and i get 21.5 lakhs, and they have asked me to pay 20,000rs as interest each month for first 3 years.

        Whether i can pay extra cash, say 5000rs, apart from the regular interest amount i.e 20,000rs to bank?

        If i happen to pay that extra 5000rs in few occasions during this 3 years period, whether that amount will be taken against the principal amount?

        • Tarini
          Tarini
          March 10, 2015 at 7:10 pm
          Reply

          Hey Ashwini

          As per our understanding of the product, prepayment is not possible in the initial 3 years where borrowers are expected to pay only interest. However I am not entirely sure about it. I believe your bank will be able to guide you best in this regard 🙂
          As a general suggestion, if you can make do with a loan of 18 lakhs (as offered under Maxgain), then it will be a better option as you will have the option of reducing your outstanding amount through parking liquid money in your OD account and you will be paying full EMI from day 1.

          • Ashwini
            March 10, 2015 at 7:55 pm

            okay, thank you so much tarini..

  53. Satish Ranga
    March 7, 2015 at 4:46 pm
    Reply

    Dear Sir,
    I hve take a HDFC home loan of 20 Lacs in 2012 from Pune Maharashtra. Today I’m working in Andhra Pradesh (VizaG) and I want to switch my loan from HDFC to SBI.
    Can it be done from Andhra Pradesh or do I have to do the procedure in Maharashtra ??
    Can Switch me do it for me and if Yes what is its procedure / charge ???

    Satish

    • Tarini
      Tarini
      March 9, 2015 at 6:23 pm
      Reply

      Hey Satish

      Thank you for contacting us. Our Customer Relations Team has already reverted to your query through mail 🙂

  54. Bond
    March 6, 2015 at 5:22 pm
    Reply

    Hi,
    I have a SBI max gain home loan account and am currently paying @ an interest rate of 10.4% . Currently the interest rate have decreased to 10.15% and i understand that interest rates are expected to further come down. My Loan was for 41lacs and currently my book balance is 7.2lacs . (which means i have paid some principal over last 2 years and also parked excess cash into max gain loan account.) My question is 1.)Whether i should to switch over and take the switch over charges of 0.5% and then switch once interest rates come down.2.)They are charging 0.5% switch over approx 24k . Am not sure as to why they are charging this and what basis of this calculation. 3.)Additionally is it really worth it to make the switch sometime later on when interest rate decreases.

    *sorry please read it book balance of 32lacs.

    • Tarini
      Tarini
      March 9, 2015 at 6:59 pm
      Reply

      Hey Bond

      For convenience of understanding, I have taken the liberty to club both your comments as one.
      Given your case, I believe it would be best for you to see how banks react to the recent repo rate cuts announced by the RBI. It is expected that bank’s will reduce rates, but we can’t be entirely sure. It would be wise to monitor the market for the next month or so. If no changes follow, then it would be beneficial to switch within SBI by paying the switch over charges of 0.5%.
      I hope this helps 🙂

  55. Ramkumar
    March 4, 2015 at 6:00 pm
    Reply

    Hi,

    Thanks for the detailed explanation on MAXGAIN scheme.

    As per my understanding, if I park some amount on my OD account, I will be gaining on interest, on this MAXGAIN scheme.

    Hope, parking some amount on OD is entirely different from Pre-Payment process. Please correct me if I am wrong.

    I have few quick questions,

    1. Here will my tenure comes down? or will my EMI come down ? (since gaining on interest should be reflect either on Tenure or on EMI)

    2. Once I park a huge amount on OD, later can I use it for Pre-Payment ? If yes, what procedure I have to follow ?

    Thanks in advance.

    regards,
    Ramkumar

    • Tarini
      Tarini
      March 4, 2015 at 7:10 pm
      Reply

      Hey Ramkumar

      We are happy that you found our article useful 🙂 Here’s a response to your queries:

      1. You will not get any interest on amount parked in your OD account. The only function of this account is to help reduce your book balance (outstanding principal amount on which interest is charged.) This in turn helps reduce your interest outgo.
      2. Yes, parking money in OD is completely different from pre-payment. Any amount parked in OD can be withdrawn anytime by you. However, to prepay your loan you need to deposit money in your loan account which cannot be withdrawn again.
      3. This one has been answered in point 1.
      4. Yes, you can use money from your OD account to prepay the loan. All you have to do is withdraw the money and transfer it into loan account.

      I hope this clarifies your doubts.

      • Ramkumar
        March 4, 2015 at 8:18 pm
        Reply

        Thanks for your quick reply Tarini.

        • Tarini
          Tarini
          March 4, 2015 at 8:46 pm
          Reply

          🙂

  56. Dr Rajiv
    February 26, 2015 at 6:30 am
    Reply

    Hi Tarani,

    I have downloaded a provisional interest certificate of my maxgain loan account. But it is showing principal amount as zero while i have paid all my emi regularly. Can it because i have withdrawn some amount from accumulated corpus i.e. accumulated principal amount. I have never parked surplus amount in this account.

    Copy of Provisional Interest Certificate

    ‘Limit in (Rs) : 2149000
    This is to certify that the repayment expected in the above noted Home Loan account for the period
    from Start of financial year to End of financial year is as under.
    From To Amount in (Rs)
    Actual Repayment : 01/04/14 30/11/14 110297.93
    Expected Repayment : 01/12/14 31/03/15 102764
    Total : 213061.93
    Of which, Principal : 0
    Interest : 213061.93
    Charges : 0

    Please help in understanding it

    Regards,

    Dr Rajiv,

    • Tarini
      Tarini
      March 12, 2015 at 4:55 pm
      Reply

      Hi Dr. Rajiv

      What I infer from the above statement is that all your EMI payments have gone towards interest payment only. Kindly verify this against the amortization chart provided by your bank. If you have just started paying your EMI’s, then this is very likely as the total amount repaid and interest paid match up. If not, then kindly contact your bank for a clarification on this as they will be able to guide you best in this matter.

  57. milind bhagat
    February 24, 2015 at 12:14 pm
    Reply

    hi
    this is milind
    i have some quarry regarding maxgain home lone
    i have taken home loan 3765000/- from sbi on feb 14
    after disbursement of loan two account is display on sheet i.e. OD account & loan Account
    1. what is OD & loan Account & use of this account
    2. EMI goes in OD account?
    3.Can repayment some amount monthly? if yes then which account OD or loan account
    4. how i can obtain amortization schedule. ?

    • Tarini
      Tarini
      February 24, 2015 at 3:15 pm
      Reply

      Hey Milind

      Here’s a clarification to your doubts 🙂

      1. loan account: This is the account through which the bank will disburse the loan amount. When you prepay your loan, this is the account you will need to deposit the amount in.
      OD account: This is the over draft account which you can use to park your savings or monthly salary. Any amount kept in OD account will directly reduce the book balance (amount on which you pay interest every month). So by maintaining balance in this account, you can reduce your interest outgo, and subsequently, the entire cost of your home loan.
      Book balance is = drawing power – available balance (amount kept in OD account)

      2. No. EMI has 2 parts: Principal and interest. The interest component goes to the bank and the principal amount goes towards reduction of the drawing power. The OD account is solely for your convenience, only you can deposit and withdraw money from its anytime you like.
      Drawing power is the total loan amount, which reduces with every EMI payment.

      3. Yes, you can repay some amount every month. This amount will go into your loan account.
      4. Kindly contact your bank to get an amortization schedule for your loan. This should be made available online by them.

  58. S.Sivaperumal
    February 13, 2015 at 5:51 pm
    Reply

    I had home loan of Rs.24.5Lac (May 2012) From ICICI and got transferred to SBI Max Gain four months back for Rs.19.5 Lac.
    Now I want Top up loan for Rs.5lac from this Max Gain. In this regard I have few doubts.
    1. Will I be getting the benefits under 80E (1 lac additional tax exemption)
    2. Will there be any interest change?
    3. Any other change in rules like charges of pre-closure / penalty?
    4. Any other points to be noted importantly?

    • Tarini
      Tarini
      February 13, 2015 at 6:18 pm
      Reply

      Hey S.Sivaperumal

      1. Deductions under section 80E extend only to education loans. You can claim tax benefits under sections 80C up to 1.5 lakhs on interest payments and section 24 up to 2 lakhs on principal repayments.
      2. With reference to top – up loans, you cannot claim any tax benefit on these, except if taken for home improvement. In that case you can claim deduction on interest payments, which will be clubbed in the limit 1.5 lakhs under section 80C.
      3. Yes, you will have to pay interest on your top- up loan, this will be higher than your existing loan. It will be treated as a separate loan altogether.
      4. No, this will not affect the prepayment or foreclosure of your existing home loan.
      5. I think these cover most of the common concerns 🙂 To know more about top up loans you could refer to : Understanding second Mortgage Loans

  59. yogesh
    February 12, 2015 at 5:37 pm
    Reply

    Hi Tarini,

    I have taken 37lacs loan under SBI Maxgain scheme for a under construction property.
    I will get possession after a year.
    Along with loan I have to accumulate around 7lacs more to pay builder after a year for registration and other stuffs.
    I have few doubts.
    1) I am accumulating part of 7lacs under FD. Is it good to do FD or  I should my money in OD.
     If I am putting my money in OD when and how can I take it for remaining 7lacs payment.
    2) I have taken full EMI(Rs 39,988) option. And currently interest is coming around Rs 23,212.
     How my EMI(Rs 39,988) is distributed among interest,available balance and drawing power. As per me
     EMI(Rs 39,988) – Interest(Rs 23,212) =  Rs 16,776 should deduct directly from Drawing power(principal).
     But its not happening.

    My current loan details are:-
    Book Balance:-   Rs -26,84,095
    Available balance:- Rs 9,50,533
    Limit:-    Rs 36,34,638
    Drawing power:-  Rs 36,34,638
    Interest:- 10.1%

    Please help me to understand.
    Thanks in advance.
    Yogesh

    • Tarini
      Tarini
      February 13, 2015 at 7:58 pm
      Reply

      Hey Yogesh

      Here’s a clarification to all your queries:
      1. Here its best if you do an analysis of how much interest you will save against how much interest you are earning on the FD, along with the cost of withdrawing FD before maturity.
      2. To get a better understanding of your EMI distribution, kindly refer to your amortization schedule. The EMI will have no impact on your available balance. The available balance reflects your balance in the OD account.
      3. Any reduction in your principal amount will reflect in the drawing power. However, your interest will be calculated on the book balance which is drawing power minus available balance. This is the figure that matters the most.

  60. Ajit
    January 28, 2015 at 8:25 am
    Reply

    Hi,

    I have applied for Maxgain Home loan with my wife as first applicant, but after going through the loan papers are found the Loan Type is mentioned as SBI HL-TL (WOMEN)(AUG14). Which is not mentioned about Maxgain. Need your help to understand if I have been sanctioned Maxgain or not.

    Account Number:34634541540
    Account Type:SBI HL-TL (WOMEN)(AUG14)
    GL Classification Code:15330INR1043070601
    Customer Name: Jyoti Kumari
    let me know if some more details are required.

    Regards,
    Ajit.

    • Tarini
      Tarini
      January 30, 2015 at 3:41 pm
      Reply

      Hi Ajit

      Seeing your loan description, it seems as if you have been given SBI’s Home Loan for Women, this doesn’t seem like Maxgain for sure. please contact your bank immediately, it will be a lot easier to rectify the situation if this is corrected before the loan is disbursed.

  61. ANKUR
    January 17, 2015 at 12:23 am
    Reply

    Description SBI H L MAXGAIN AUG12
    Name Mr. ANKUR SHARMA
    Book Balance -9,75,016.00
    Available Balance 45,23,439.00
    Limit 54,98,455.00
    Uncleared balance 0.00
    Drawing Power 54,98,455.00
    Currency INR
    Rate of Interest (% p.a.) 10.4%
    Lien Amount 0.00

    My EMI of 54,820 started this month, although i have taken only 10,00,000… now the book balance is reduced only by 25,000..why is that, what is calculation behind.
    Iam i losing money in interest? Can you plz help in my understanding
    Regards
    Ankur

    • Tarini
      Tarini
      January 19, 2015 at 1:03 pm
      Reply

      Hi Ankur

      With every EMI that you pay, a certain portion of it goes towards interest payment while the rest goes towards principal reduction. In this case, it looks like the remaining EMI was towards interest payment. To confirm this, you can check your loan amortization schedule. If the calculation is consistent with it, then there is nothing to worry about.

      • Aparna
        January 29, 2015 at 6:53 pm
        Reply

        Hi,

        I have already take home loan of 35 lakhs from other bank, am i still eligible to take SBI maxgain loan?

        • Tarini
          Tarini
          January 30, 2015 at 3:11 pm
          Reply

          Hey Aparna

          Loan eligibility of a borrower is solely decided by the bank, there is no hard and fast rule here. The bank will consider your income to see if you have the capacity to repay 2 loans. So I suggest you apply and wait for them to get back to you.

  62. R. Vydianathan
    January 16, 2015 at 6:14 pm
    Reply

    Dear Sir/Madam,
    My maxgain home loan OD a/c details are given below:-
    Book Balance: Dr.2121653.80, Available balance: 22,09,581.20 and Limit:43,31,235/-. (Loan availed: 47 lacs). EMI is Rs.59,110/-. (Loan has been sanctioned by racpc.pune.). My current account is with SBI, Paud Road Branch.
    I would like to prepay 20 lacs and would like to pay reduced EMI. May I know the procedure please. If letter has to be issued, to whom the letter need to be addressed?
    Regards,
    R. Vydianathan

    • Tarini
      Tarini
      January 16, 2015 at 6:47 pm
      Reply

      Hi R. Vydianathan

      Wishing you a happy and prosperous New Year 🙂
      To prepay your home loan you just need to credit the 20 lakhs in your loan account. If you face any problems then you can write a letter to your loan branch manager.

  63. Bharath
    January 5, 2015 at 3:26 pm
    Reply

    Hi All,
    Is there a way one can generate home loan (Maxgain) interest paid provisional certificate on his own by using net banking facility?
    Can I change my existing home loan city / state from Vijayawada/Andhra Pradesh to Bangalore/Karnataka?

    Thanks in Advance,
    Bharath

    • Tarini
      Tarini
      January 22, 2015 at 7:10 pm
      Reply

      Hi Mr. Bharath

      Here’s a clarification to all your queries:
      Kindly contact your bank regarding the interest certificate, they will be able to guide you better.
      Yes, you can change your existing home loan from one state to another, this provision is available through out India.

  64. Sunil Rana
    January 3, 2015 at 4:26 am
    Reply

    Hi,
    Please help me to find out if my home loan account is of the type maxgain or not. I am not able to. All I see is the following description: BR-HTL FLT. I can also see the fields like: Limit, Drawing power and Outstanding amount. Also, if I deposit any surplus amount into this account, will it be a pre-payment or surplus? Please explain. Thanks.
    –Sunil

    • Tarini
      Tarini
      January 5, 2015 at 9:07 pm
      Reply

      Hi Sunil Rana
      Wishing you a very happy and prosperous new year! 🙂
      1. About the nature of your home loan, kindly clarify with your bank immediately about the scheme.
      2. Meanwhile, since you ,mention that you can see fields like LIMIT and drawing power, it makes me suspect that it could be a Maxgain home loan. Do you see a separate loan account and OD account? If so then its a maxgain account.
      3. Any surplus deposits in your OD account will help bring the interest payments down in the same proportion to the savings you have deposited. This will not be treated as a prepayment.

  65. Sudip Basu
    December 23, 2014 at 2:24 pm
    Reply

    Hi Tarini,
    Fantastic responses. To be honest the SBI fellows might not be aware of these info. Lighter Note – if the MD of SBI reads the responses, you have an offer at hand.

    My part – I have transferred the whole loan amount into my OD account minus value of last 2 EMI Total INR 30000. Before going ahead and closing the account I wanted to check.

    1. Is it advisable to keep this max gain account alive?
    2. Is there any interest paid on the excess amount deposited through my monthly ECS post levelling the loan amount?
    3. Is there any means by which we can stop this ECS to stop the excess deposit in OD account?
    4. In case I want to close and get my original documenst, What is the closure process to be initiated from my side?

    Thanks in advance

    • Tarini
      Tarini
      December 23, 2014 at 3:32 pm
      Reply

      Hey Sudip

      That is very encouraging! Thank you for the kind words 🙂

      1. You should consider keeping the maxgain account alive only if;
      a) By showing EMI payments this financial year you will be able to get full tax benefits (1.5 lakhs on interest payments and 2.5 lakhs on principal repayments). But if your payments (or other investments) have exceeded this limit, then you close the account.
      b) You will need the money in your OD account in the near future. So before closing, make sure you have sound financial backing for emergencies.
      2. No interest is paid on the excess amount in OD account, if it exceeds your current outstanding principal amount.
      3. You cannot stop ECS and still maintain the OD account. This means that to do so, you will have to close your home loan.
      4. To close your home loan you need to inform the bank in written that you wish to do the same. Closing a home loan can take from 7 to 10 days. Once the bank initiates the closure process, they will guide you through.

      I would like to add here that the bank will continue to to deduct ECS even if the OD account has surplus funds. The amount deducted will get deposited back into your OD account. I hope this answers all your queries.

  66. Nirmal
    December 17, 2014 at 6:58 pm
    Reply

    Hi Tarini,

    I am planning to apply for a SBI Max Gain loan. Though the loan amount I’d need is around 45 lakhs (80% of property amt), my take home salary is around 75k. I’ve an education loan for which I pay Rs. 15k per month. The SBI agent said with Max gain I’d be eligible for 72% of my take home salary whereas in normal scenario I’d be eligible only for 60%. Could you please throw more light on this.

    Does max gain work like a personal loan where the bank will provide loan for 12%? Is there any hidden charges/agenda like the interest rate for max gain may increase/decrease in future etc.

    • Tarini
      Tarini
      December 26, 2014 at 11:12 am
      Reply

      Hi Nirmal

      1. Looks like the SBI agent is just trying to convince you to take their Maxgain product as there the eligibility for taking loan and interest rate are the same for maxgain and regular home loans.
      2. No, maxgain doe snot work like a personal loan. the only difference with maxgain is that it has an Over Draft Account facility which allows you to bring down the interest payments by parking your surplus funds in it.

  67. Jitu
    December 16, 2014 at 5:27 pm
    Reply

    My current loan Location is NCL Branch in Pune which is 15 KM away from my house and nearest SBI branch for me is Pimple Saudagar branch which is 3 km from my house.

    • Tarini
      Tarini
      December 16, 2014 at 6:01 pm
      Reply

      Hi Jitu
      Since our services are available only in Mumbai at present, we will not be able to do the process on your behalf. I Suggest you visit the branch and request them to transfer you loan to nearest branch. Feel free to contact us for further guidance.

      • Jitu
        January 2, 2015 at 6:10 pm
        Reply

        Hi,

        I have done repayment of 1 lack in my max gain account ,previously my loan was 20 lacks not it is 19 lacks, can that 1 lacks amount will be treated as princple and i can take benifit of 80 c section.

        • Tarini
          Tarini
          January 5, 2015 at 7:56 pm
          Reply

          Hi Jitu
          Wishing you a very happy and prosperous new year 🙂
          Yes, you can claim tax benefits on pre-payment of your home loan.

  68. Jitu
    December 15, 2014 at 1:08 pm
    Reply

    Hi Team,

    I have Maxgain account and on that account I have around 50,000 RS, I want to pay this amount permeant to my principle amount(To take Benefits of 80 C in tax). when I went to SBI branch for that, particular person told me that I can add only 20% of my total loan amount(i.e. around 3lacks), my loan amount is around 20 lacs . please suggest.

    • Tarini
      Tarini
      December 15, 2014 at 5:10 pm
      Reply

      Hi Jitu

      Your query seems very unlcear, could you please elaborate on ‘add 20%’ and how you’re looking to claim tax benefits under 80C?

      • Jitu
        December 15, 2014 at 6:13 pm
        Reply

        Ok leave the 80 C part.

        I want to pay 50,000 against my loan permanently, is it possible? Because as per SBI person I can pay only 20 % of total loan amount i.e. around 3 lacs . I think it is called as repayment not sure please correct me if I am wrong.

        • Tarini
          Tarini
          December 15, 2014 at 7:30 pm
          Reply

          Hi Jitu

          As per SBI regulations, there is no cap on pre-payment of home loans, you can prepay as much of the home loan as you want. It seems that you have been wrongly guided, kindly confirm again with the branch manager. To prepay your home loan all you have to do is credit that amount in your loan account. So if you decide that every month you will prepay some amount of your home loan, then that should work out best for you.
          You can prepay the entire loan amount too, if you have the financial banking to that capacity at a later date.
          I hope this answers your query 🙂

          Regarding your unclear reference to 80C in the previous query; under section 80C, for a given financial year, you can claim tax benefits of upto 1.5 lakhs against payment of principal component of your home loan. For full details on tax benefits on your home loan, please read here.

          • Jitu
            December 16, 2014 at 10:48 am

            Hi Tarini,

            Thanks for the answer,

            I have one another question. Last year when I transfer my loan from LIC to SBI I have told SBI Agent the branch which is near to my home, but don’t know what happen they give me the branch which is 15 KM long from my home. Is it possible to change the SBI Home loan branch for me to the nearest branch?

          • Tarini
            Tarini
            December 16, 2014 at 4:41 pm

            Hi Jitu
            Could you help me with the location of your current loan branch, and the one you would like to shift your home loan to?
            Also, you could visit your current loan branch and request the Branch Manager to transfer your home loan to the nearest SBI branch citing inconvenience.

  69. madabouthrodricks
    December 2, 2014 at 10:24 pm
    Reply

    Hi

    What is the current rate of SBI Max gain for Women?I was told it was 10.55 when i applied yesterday

    Pls clarify

    • Tarini
      Tarini
      December 3, 2014 at 5:13 pm
      Reply

      Hi madaboutrodricks

      According to SBI’s official website, lending rate for women borrowers, for maxgain is 10.10%. If your loan amount exceeds 1 crore then, the lending rate would be 10.35%.
      Kindly clarify this with your bank as there are several factors related to the borrower which influence the lending rate such your credit score, your previous loan repayments and outstanding loans if any.

  70. Gopinath
    November 18, 2014 at 8:35 am
    Reply

    Hi Chintan,

    Thanks a lot for your reply.

    I am in need of Rs.5 lakh and I have 1 lakh only in the Available balance (by means of parked surplus money earlier) and I can withdraw this 1 lakh from this avai.. balance without any interest as you said.

    Can you please suggest is there any way to withdraw the remaining Rs.4 Lakh from this OD account by paying interest to the bank (since I don’t have much knowledge on this OD account)?

    PFB the info of my OD account.
    Drawing power = Rs.21 lakh
    Limit = Rs.21 lakh
    Available balance = Rs. 1 Lakh

    Thanks,
    Gopi

    • Chintan Udani
      November 18, 2014 at 11:24 am
      Reply

      Hi Gopi,

      Sorry you cannot withdraw the remaining 4 Lakh from the OD account. You will have to manage it from somewhere else.

  71. Gopinath
    November 17, 2014 at 8:47 am
    Reply

    Hi Tarini,

    Good Morning.. This is Gopinath from Chennai and I have SBI maxgain OD account. I have the following in my OD account.

    Drawing power = Rs.21 lakh
    Limit = Rs.21 lakh

    I am in need of money around Rs. 5 lakh and please suggest whether can I take money from this Drawing power or Limit (I believe both the components are same) from my OD account by means of cheque. If it is so, please inform the interest rate for this withdrawal ( I believe the interest rate for my home loan of 10.15% applicable to this. Please correct me If I am wrong?)

    Awaiting for your response.!

    Thanks a lot!

    Regads,
    Gopi

    • Chintan Udani
      November 17, 2014 at 12:39 pm
      Reply

      Hi Gopi,

      There will be a field called ” Available Balance” in your Maxgain account. This field reflects the accrued surplus amount that you have parked in the Maxgain account. If your available balance is above 5 Lakh then you can withdraw 5 Lakh from there. Since this is surplus amount that you parked in the account no interest is charged on that.

  72. Saravanan
    November 8, 2014 at 10:57 am
    Reply

    Hi Tarini,

    Thanks for the clarifications. On looking into my home loan statements, I could find the increase in ROI as per following
    5/5/2011 (starting date of my home loan) – 9.25%
    On 12/5/2011 increased to 10.00%
    On 11/7/2011 increased to 10.25%
    On 13/8/2011 increased to 10.75%

    From 13/8/2011 to till now, i am paying 10.75% as ROI. Whenever RBI increases the interest rate, banks follow them and implements the increased ROI on us. Why banks don’t follow when there is a fall / decrease in the ROI and why we need to pay 0.56% of outstanding amount to lower the ROI which is stated by RBI. If banks follow the increase in ROI, then they should follow the decreased ROI as well right.

    Thanks,
    Saravanan.

    • Tarini
      Tarini
      November 8, 2014 at 11:26 am
      Reply

      Hey Saravanan

      1. Yes, ideally the bank should implement a decrease in rates too! But sadly, this is a practice across all banks. They offer low interest rates to the new borrowers while the old ones continue to pay high rates even after an overall decrease in the market.

      2. Further, every bank has its own rules and regulations directing internal switching of customers. All banks charge a certain processing fee to bring the old customers down to the prevailing rate.

      Hence, both are a matter of bank policy, subject to their discretion.

  73. Saravanan
    November 6, 2014 at 10:19 am
    Reply

    Hi Tarini,

    Firstly I would like to thank you for your valuable advices.
    The answers and the tips you provide here are very very useful. Before reading the queries and your reply I had several doubts about SBI Max Gain scheme as I took my home loan based on this plan and got cleared with your answers.

    Still I have few queries as I couldn’t find any comments on those
    1) Currently my rate of interest (ROI) is 10.75% and if I want to switch to current ROI of 10.15%, I need to
    pay the 0.56% of my sanctioned loan amount as the fee. If I proceed further on this then I will be switched to
    the lower ROI after 1 month (at least before end of Dec’14). For example if the home loan interest rate is
    reduced further in Jan’15 to 9.75%, whether I need to pay again the processing fee during that time for my
    second switch from 10.15% to 9.75%.

    2) How many times I can switch to lower ROI and in what intervals ?

    3) I was sanctioned for the Home Loan through SBI Max Gain scheme for about 40.2 Lakhs on May 2011, but I
    took only 38 Lakhs from bank and I am paying my EMIs till date. Whether I will be charged 0.56% on 40.2
    Lakhs or 38 Lakhs as the fee for the switch over ?

    Hope your reply will help others as well.

    Thank you once again.

    Thanks,
    Saravanan.

    • Tarini
      Tarini
      November 6, 2014 at 1:35 pm
      Reply

      Hey Saravanan!
      Thank you for those kind words, happy our blog could be of some help to you 🙂
      Here is a clarification to all your queries:

      1. Yes, you will have to pay a processing fee of 0.56% every time you apply to switch to a lower interest rate. However, judging the current market conditions, a further reduction in interest rates is unlikely. So you don’t need to worry about that. Also, before switching you can use this calculator to see how much will you save by switching your home loan to a lower interest rate. Click here for calculator

      2. There is no restriction on switching home loans, you can switch to a lower interest rate/ another bank as and when you think is necessary.

      3. The final disbursed amount is irrelevant to this matter. Processing fee will be charged on your current outstanding principal amount.

      • Jatin
        November 6, 2014 at 8:32 pm
        Reply

        Hi Saravana,

        As per the current rule you can switch only once in your entire span of loan.
        .56% will be charge on sanctioned loan amount.

        Thanks,
        Jatin

        • Tarini
          Tarini
          November 7, 2014 at 3:29 pm
          Reply

          Hi Jatin

          I would like to correct you, there is no restrictions on switching. A borrower can choose to switch his loan any number of times spanning the entire tenure. This applies to internal switching as well as switching to another bank.

          • Jatin
            November 7, 2014 at 11:17 pm

            Hi Tarini,

            I have loan undr max gain & I had switched in past. I had reapply for switch few week back, SBI RACP had rejected my application saying switch is allowed only once in entire tenure.

            If you can share the SBI link which clearly says switch is allowed multiple/indefinite times will be helpful.

          • Chintan Udani
            November 25, 2014 at 2:55 pm

            Hi Jatin,

            Based on our conversation with SBI bank you can switch your loan as many time as you want. If you are in Mumbai then we can help you switch your loan too. Sign up with us at http://www.switchme.in/switch-home-loan and we well help you with your loan switching.

  74. anjana
    October 27, 2014 at 1:59 pm
    Reply

    Hi, I took a loan of 51 Lacs from HDFC bank for 15 years in December 2013. currently my EMI is 56,846 per month. Please advise the processing fee & any other hidden charges if i switch to SBI maxgain.

    • Chintan Udani
      October 28, 2014 at 12:24 pm
      Reply

      Hi Anjana,

      For switching your loan from HDFC to SBI Maxgain you will have to pay following charges –
      Processing Fees: Rs. 1124,
      Valuation Fees: Rs. 4000,
      Advocate Fees: Rs. 1690,
      Stamp Duty: Rs. 10200,
      Intimation Fees: Rs. 5000

  75. Raghav
    October 20, 2014 at 5:34 pm
    Reply

    Hi Tarini,

    If its a under construciton house .
    As said earlier, there are two type of EMI till I get the possesion. One is pre-EMI(only intereset till full disbersement) and one is full-EMI(full MEI deducted as if loan was fully disbersed reducing the principal faster thereby).
    So my question is:
    If total loan amount is 32L, Amount Dispersed to builder till date is 10.65 . so, I will be paying EMI around 10k (only interest). Now if i add surplus amt of 5L on 1st month itself as part OD. what difference does it make to interest and actual principle amount ( now and after getting possession after 18 months).

    • Chintan Udani
      October 30, 2014 at 11:24 am
      Reply

      Hi Raghav,

      The surplus 5L in OD will come into effect after the final disbursal. Hence till then the Interest and Principal amount will not be affected. After the full disbursal the interest part will come down as you have 5L in surplus in your Maxgain account.

  76. Goldi Mishra
    October 6, 2014 at 1:20 pm
    Reply

    Hi,
    I have a Max Gain Home Loan of 1935000 paying EMI of 19400 current interest rate charging is 10.5%, but as per today interest rates of same scheme is 10.15%. Please suggest can I change the Interest rates to 10.15% and what is the procedure? What is the benefit if I do?

    • Tarini
      Tarini
      October 6, 2014 at 2:55 pm
      Reply

      Hi Mr. Mishra

      Yes, you can switch to a lower interest rate. This will help you in 2 ways:
      1. reduce tenure of your loan so that you can pay off loan faster and pay lesser interest to bank
      2. reduce your current EMI outgo, giving you more disposable income every month
      However, before you switch I would suggest you use this calculator to see the exact impact of switching in your case. I would advise you to switch only if the savings are substantial.
      Calculator: http://switchme.in/switch-home-loan
      3. Switching to a lower interest rate takes approx. a month. You will have to go down to your bank, fill out a form and complete several other formalities which may require a few more visits to the bank. But if you are in Mumbai, you can have SwitchMe do the entire paper work and leg work for you. You can sign up on the calculator and switch your home loan sitting at home 🙂

  77. Raghu Kumar
    October 4, 2014 at 5:32 pm
    Reply

    Have a Max Gain Loan with SBI and regular EMI outgo for past 4yrs. Need top up of about 10 Lakhs which I am eligible as per the matrix. Will the interest be at 10.25% for the top up as well as I have the current home loan at 10.25 running? I am aware that they give equity at 10.45 odd.

    • Tarini
      Tarini
      October 4, 2014 at 6:45 pm
      Reply

      Hey Raghu
      Generally the interest rate for top up loans is 1% higher than the prevailing lending rate for any bank. Since the prevailing rate at SBI is 10.15%, the top up loan should be roughly at 11.15%.

  78. Rishi Kuamr
    October 4, 2014 at 3:13 pm
    Reply

    I want to take home loan of 21L. My salary is 40K in hand , Can i take the loan for 20 Years only ?

    • Tarini
      Tarini
      October 4, 2014 at 6:39 pm
      Reply

      Hi Rishi

      1. Determining eligibility of a borrower is solely at the discretion of the bank, this also differs from bank to bank. Judging by the salary you have specified, you should be eligible for a home loan of 21 lakhs, but the bank will be able to guide you best since many other factors are taken into consideration.
      2. Yes, a tenure of 20 years on this home loan shouldn’t be a problem. Yet, I would advise you to confirm this with the bank you are applying to.

  79. Vijay
    September 18, 2014 at 1:45 pm
    Reply

    Nice article.Somehow my calculation is not tallying with current status of my account

    This is the status as on 16th september

    Book Balance : -28,55,141
    Available Balance : 4,05,479
    Limit : 32,60,620
    Drawing Power:32,60,620
    Uncleared Balance:0
    Rate of interest:10.1%

    Loan amount is for 32,68,000

    Account Statement
    Debit Credit
    18 Aug 28,76,000 – First disbursal
    31 Aug 11,141
    15 Sep 0 32000 – First EMI

    I could not understand how Available balance is 4,05,479. How the 32000 is separated into principal and interest component here as full disbursal has
    not happened yet.Could you help ?

    • Tarini
      Tarini
      September 20, 2014 at 1:07 pm
      Reply

      Hi Vijay
      Thank you for the appreciation 🙂

      Here is a clarification to your queries;
      1. Available balance is the surplus amount parked in your OD account + accrued interest. Since this is new home loan, available balance is reflecting the amount you have credited in your OD account.
      2. According to the information shared by you, I do not see any break-up of first EMI payment into principal and interest component. However, irrespective of full disbursal of loan, if you are making full EMI payments, it will be broken down into principal and interest components. This is done for your convenience, so that you know how much of your EMI payment is going towards principal reduction.

      I hope this answers all your doubts.

  80. Sundar
    August 26, 2014 at 4:23 pm
    Reply

    HI,I got SBI Home loan for my flat on 2008,and I changed to SBI MAX GAIN with a amount of 30k approx.on 2012
    And I am paying the EMI regularly.Suddenly I got a letter from SBI that there is a outstanding of 90k and pay it make it normal.Since I am living abroad I am unable to follow this.And I am requesting the the bank through emails.Still I am not receiving a reply clearly explaining the reason.Can you people help on this what is the reason for this outstanding though my EMI is paid regularly.

    • Tarini
      Tarini
      August 26, 2014 at 5:26 pm
      Reply

      Hi Sundar

      I regret to inform you that we will not be able to assist you in this matter as its not our area of expertise. This is a very unusual case, as the nature of the outstanding amount is unclear. However, if you can share you complete loan details with us, we could help you diagnose the nature of this outstanding amount, which might help you take things further with the bank officials.

      • AnkitGarg
        September 7, 2014 at 4:08 pm
        Reply

        Hi Tarini,

        I am taking a house under construciton.
        So there are two type of EMI till I get the possesion. One is pre-EMI(only intereset till full disbersement) and one is full-EMI(full MEI deducted as if loan was fully disbersed reducing the principal faster thereby).
        So my question is:
        Is full-EMI option there in Maxgain?

        Thanks,
        Ankit.

        • Tarini
          Tarini
          September 9, 2014 at 5:15 pm
          Reply

          Hey Mr. Garg
          Yes, full EMI option is these in Maxgain. This is a better option among the two.

  81. Sendhil Kumar
    August 20, 2014 at 5:52 pm
    Reply

    Hi Tarani

    These info are v.helpful….

    I hold a maxgain loan already for 20 lakhs since 2009 and due to some reason still my principal remains same, now i need an additional amount of 10lakhs being the property value increased almost 75% and salary by 60% pls advise what will be the procedure or loan scheme i can approach bank for and what will be intrest rate.

    Tks for your valuable reply.

    Rgds
    S.Kumar

    • Tarini
      Tarini
      August 20, 2014 at 6:43 pm
      Reply

      Hello Mr. Kumar

      1. I am inquisitive about how is it that you principal amount has not changed since 2009! Please check this with your bank. Is it because you have maintained an equal amount of 20 lakhs in your OD account till now?
      2. You can apply for a top-up loan on your existing home loan. the interest rate would be approx. 1% higher than what you are paying currently on your home loan.

  82. ARUN KUMAR
    August 12, 2014 at 5:53 pm
    Reply

    Hi, I have taken SBI maxgain home loan in June 2012. Now i want to take additional loan( top up ) on existing loan for purchase for furnitures, interiors and some minor modification in flat. I was not eligible for extra amount loan in year 2012 as per my salary slip furnished to SBI. Now I have rented out my flat and getting rent every month and my salary is also increased in last two years. Valuation of my flat is also increased. My questions are ..
    1. Am I eliglible for top up loan ? and whats the maximum and minimum amount of loan?
    2. Have I to go through all paper works as I have done during sanctioning of loan in year 2012. because I am taking top up loan from same bank (SBI).
    please guide me
    thanks

    • Tarini
      Tarini
      August 12, 2014 at 6:23 pm
      Reply

      Hi Arun

      1. The maximum and minimum amount of top loan and your eligibility will be decided by the bank at their discretion.
      2. You will have to do some paperwork with the bank. This usually includes filling out a form and shouldn’t be as complicated as applying for a new loan.

      • Venkatesh
        August 12, 2014 at 8:18 pm
        Reply

        Hi Tarini,

        My name is Venkatesh. The clarifications you are providing is very helpful.
        I availed SBI maxgain home loan in Dec 2008 for 15 years term. I am paying EMI of Rs.18342 regularly from then. Now, I am intending to close the loan and made the prepayment. Now the Book balance is 25000. I contacted SBI home branch to close the loan by paying remaining Rs.25000.
        The Banking official said that I have to pay at commercial rate of interest since the construction of the house did not start within a period 2 years and also said that SBI RACPC, Bangalore will calculate the extra percentage of amount which I have to pay and send the calculation sheet to the SBI branch where I am doing transaction. My OD account details are mentioned below.

        Book Balance: -25000
        Available Balance: 14,07,042
        Limit: 14,32,042
        Drawing power: 14,32,042
        Rate of Interest: 11.6%

        I need some clarifications for the questions listed below. Please let me know.

        1. What will be the extra percentage of interest that will be applicable in this case?
        2. What will be the approximate amount that I have to pay since the house construction did not begin within 2 years of availing the loan?
        3. On what basis/loan component the extra amount will be calculated.

        Regards,
        Venkatesh

        • Tarini
          Tarini
          August 20, 2014 at 5:35 pm
          Reply

          Hi Venkatesh

          Looks like the bank is penalizing you for not starting the construction within 2 years. Since this is not our area of expertise, I will not be able to clarify your queries. Your bank will be best equipped to guide you in this matter.

  83. Suman
    August 10, 2014 at 11:47 pm
    Reply

    Hi, I have taken max gain loan. The property is still under construction. I opted for full EMI. After the first EMI, I noticed that the drawing power has not changed. I assumed, the principal part of EMI will be deducted from the drawing power. Are there any conditions on principal component if the loan is not fully disbursed so that drawing power is not changed (or) am I completely wrong in my understanding on the behavior of drawing power.

    • Tarini
      Tarini
      August 11, 2014 at 5:55 pm
      Reply

      Hi Suman,

      Since your property is still under construction you will be paying only interest on your entire outstanding principal amount, until completion of construction. The principal repayment will start once the construction is completed. This explain why your drawing power doesn’t change in spite of paying EMI.
      However, I will be able to guide you better if you could share your case details with me; like, your book balance, drawing power, available balance, interest rate etc.

      • Suman
        August 12, 2014 at 12:06 am
        Reply

        Hi Tarini,
        Thank you for the quick reply. The very next day after my 1st EMI I saw a different values in my OD account. I have mentioned some of the details below.

        Interest 10.15
        EMI 44434 360 months tenure …. Ahem!! I know it’s a long one 🙂

        Component Amount Date Remarks
        =================================================================
        Drawing power 5000000 14-Jul-14
        Loan disbursed 4260882 14-Jul-14
        Book balance 4260882
        Available Balance 739118 14-Jul-14
        Available Balance 1039218 16-Jul-14 Credit Surplus Amount of 300100
        Book balance 3960782 16-Jul-14
        _________________________________________________________________
        Interest 19992 31-Jul-14
        Available Balance 1019226 31-Jul-14 Interest amount was reduced
        Book balance 3980774 31-Jul-14 Interest amount was added
        _________________________________________________________________
        Available Balance 1219226 06-Aug-14 Credit Surplus Amount of 200000
        Book balance 3780774 06-Aug-14
        _________________________________________________________________
        EMI paid 45000 10-Aug-14
        Drawing power 5000000 10-Aug-14
        Available Balance 1264226 10-Aug-14 EMI amount was reduced
        Book balance 3735774 10-Aug-14 EMI amount was added
        _________________________________________________________________
        I think some calculations happen on the night of EMI date; as I saw different figures altogether the very next day
        _________________________________________________________________
        Book balance 3735774 11-Aug-14 Remains same as 10-Aug
        Available Balance 1244820 11-Aug-14 Int. 19992 is reduced & 5602 is added
        Drawing power 4980594 11-Aug-14 19406 (45000-19992-5602) is reduced
        _________________________________________________________________

        This is what I understood:
        – Interest for available balance till 31-Jul-2014 and extra amount 566(45000-44434) in EMI were added to available balance which comes around 5602
        (And EMI paid) – (interest till 31-Jul-2014 i.e 19992) – (Interest on available balance i.e. – 5602) = 19406 is reduced from drawing power

        Now I am confused with my initial understanding!!

        • Tarini
          Tarini
          August 12, 2014 at 6:05 pm
          Reply

          Hey Suman

          Here is a simple explanation of the information shared by you:
          1. Your available balance is 7.39 lakhs in july 14 as that is the difference between the EMI you are paying and constant EMI set by the banks’s ECS.
          2. EMI amount has been reduced from your available balance and in the last transaction, it has been adjusted towards the end.

          Also, I think you may be a little confused with the terms, here is a simple definition of each:
          1. Available balance: This is your surplus savings parked in OD account + accrued interest savings. Thus, this is the amount that you can withdraw from your account at any given time.
          2. Drawing power: This is your on date outstanding principal amount on which you will be charged interest.
          3. Book balance: This is drawing power – available balance.
          4. Limit: It’s always equal to the drawing power.

          I hope this clarifies all your confusion 🙂

  84. Aiman
    August 9, 2014 at 2:26 am
    Reply

    Hi Tarini,
    I have got a loan of 29 Lakhs from PNBHFL for 18 years. My interest rate is fixed type – 10.75% for the first 10 years of which 1 year has passed. Will it be beneficial for me to switch to SBI Maxgain now?
    Thanks.

    • Tarini
      Tarini
      August 11, 2014 at 6:18 pm
      Reply

      Hi Aiman

      Generally, switching while on a fixed interest rate is not beneficial due to the prepayment penalty involved. But you stand to save due to your high interest rate of 10.75%.

      Since your home loan is on a fixed interest rate, you will need to pay a prepayment penalty of 2% to switch your home loan to SBI Maxgain. According to the information shared by you, by switching you will roughly save around 5.56 lakhs (do note that this value takes into account your prepayment penalty of 2% which would roughly come up to Rs.58,000. This is value is not reflected by our calculator below. Hence, there is a difference in net savings).

      Here is a detailed analysis of your savings; http://switchme.in/home-loan-comparison/53e8b8a117378

      If your property is in Mumbai, then you can sign up for our services and have us do the entire paper work, visiting banks and formalities for you 🙂

  85. Tom
    August 7, 2014 at 10:39 pm
    Reply

    Hi Tarini,

    I have housing loan “sbi my home loan campaign”, this is an OD based home loan and the interest rate is 12%,(linked to SBAR). Can i convert this loan to Maxgain so that i can retain the OD status and transfer surplus amount.

    Tom

    • Tarini
      Tarini
      August 8, 2014 at 6:35 pm
      Reply

      Hi Tom
      According to what i understand, under this scheme, several different home loans schemes are offered to borrowers, at fixed or floating interest rates. So if you are currently on a fixed interest rate, then switching to maxgain will not benefit you due to the prepayment penalty attached to it.
      If you are on a floating interest rate, then you can switch to maxgain. However, before taking the decision, it is advisable to do a cost benefit analysis.

  86. VIJAY
    August 5, 2014 at 11:59 am
    Reply

    I have an SBI SURAKSHIT HOME LOAN,
    Loan amount= Rs.33,00,000
    Original Tenure = 10 yrs
    Original interest=10.1%
    current Interest= 10.4%
    EMI=Rs.43,800/-
    Remaining Tenure= 9 yrs
    Outstanding Principle=Rs.30,91,970/-

    I am eligible for a Home equity overdraft of Rs.20,00,000/- but interest rate of home equity overdraft is 11.5%

    can I restructure my home loan to an SBI MaxGain for a tenure of 30 yrs and a Limit of Rs50,91,970/- and enjoy the liquidity of Rs.20,00,000/- @ homeloan interest rate?

    Thanks & regds…Vijay

    • Tarini
      Tarini
      August 8, 2014 at 6:41 pm
      Reply

      Hi Vijay

      I don’t believe you can restructure your loan as mentioned above. However, kindly check with your SBI loan branch as they will be able to guide you best in this matter.

  87. Sachin
    August 2, 2014 at 7:20 am
    Reply

    Hi Tarini,

    I have a query regarding the principal amount paid through EMI.

    I have home loan of 23 lacs and I have parked 5 lacs in OD Account.

    It will reduce my interest amount from the EMI, does this means that amount will be paid against principal of the home loan or it will get added to my OD account.

    • Tarini
      Tarini
      August 5, 2014 at 1:29 pm
      Reply

      Hi Sachin
      Since you have parked 5 lakhs in your OD account, your current outstanding loan amount or book balance will be 18 lakhs. You will have to pay interest on this amount until any further change in your OD balance.
      I hope this clarifies your doubt 🙂

      • Sachin
        August 5, 2014 at 6:58 pm
        Reply

        Hi Tarini,

        Thanks for your reply.

        I got that the interest will be on 18 Lakhs, so the amount reimagining from the interest will get added towards principal payment.

        E.g.

        EMI = 25000
        Interest = 20000
        Principal = 5000

        Let’s say on keeping 500000 in OD account, interest will become 15000 then principal will be 10000.

        This is my understanding. It is correct?

        • Tarini
          Tarini
          August 6, 2014 at 3:43 pm
          Reply

          I think you are confused about the interest and principal component of your EMI. The way interest payment and principal repayment are distributed in each EMI has nothing to do with the OD amount. This is decided by the bank, which will be reflected in your amortization schedule.

  88. Haraprasad Sahoo
    July 11, 2014 at 4:38 pm
    Reply

    Hi,
    To avail the benefits of max gain,is it madatory that the EMI should be paid from a sbi savings account only.Is it possible to link any other bank account like HDFC to the max gain account and pay the monthly EMI through HDFC and park any surplus funds from other bank to sbi max gain account.

    • Tarini
      Tarini
      July 14, 2014 at 2:00 pm
      Reply

      Hi Mr. Sahoo

      Here is a clarification to all your queries:

      1. Though it’s compulsory to have an SBI savings account along with maxgain, its not mandatory to pay EMIs only from your SBI savings account.
      2. You can link any other savings account to maxgain account and pay EMIs through it.
      3. Yes, you can park surplus funds from and other bank accounts in maxgain OD account.

  89. Vaibhav Vidhate
    July 6, 2014 at 10:19 pm
    Reply

    My current maxgain home loan interest is 11.75%. Does there are any options to reduce the interest rate? For first 3 years interest rates are fixed 8, 9 and 9. How can I know total parked amount in the account? Is it okay to do prepayment with that amount to reduce the loan faster?

    My current home loan is for 25 years. I took a home loan of Rs 21 lakh. Initially my salary was not feat for 20 years loan. So can we reduce the tenure of the loan? I had enquired but didn’t get much help from SBI. I had increased EMI from 17 k to 25k 2 years back. Is it okay?

    • Tarini
      Tarini
      July 7, 2014 at 2:51 pm
      Reply

      Hi Vaibhav

      Here is a clarification to all your queries:
      1. To reduce the interest rate to the current interest rate of 10.15%, contact your loan bank and put in a request. If your loan location is Mumbai, then you can sign up @ http://switchme.in/switch-home-loan and have us do the entire paperwork and follow up with the bank, saving your time and effort.
      2. The available balance in the loan statement is the total parked amount in your OD account.
      3. Yes, you can reduce tenure of loan too. You can apply along with reduction of interest rate.
      4. The change in EMI will not have any impact on any of the above mentioned changes.

  90. Gabriel raj
    June 23, 2014 at 4:15 pm
    Reply

    Dear Tarini,

    I have home loan with SBI. Request to SBI to switch shahrukh shit home loan into maxgain. It is in progress. my loan amount is 26,40000. My EMI started on Jan2013. Now I need 5 lacs. Once switched my home loan plan into maxgain can I get 5 lacs from my maxgain account?
    Thanks in advance.

    • Tarini
      Tarini
      June 23, 2014 at 4:40 pm
      Reply

      Hi Gabriel

      Once you have switched your home loan, you will be able to take a top up loan from SBI after a period of one year. The sole function of your maxgain account is to enable you to use your liquid savings to lower your interest burden. You cannot use the OD account to withdraw a sum higher than your existing loan amount/ take a top up loan.

      • Gabriel raj
        June 23, 2014 at 5:35 pm
        Reply

        Thanks Tarini.

        • Tarini
          Tarini
          June 24, 2014 at 2:07 pm
          Reply

          Happy to help 🙂

  91. Pankaj Khodakiya
    June 18, 2014 at 1:22 pm
    Reply

    Hello,

    My self pankaj patel. Me & My wife both are self employed business person. my wife have home loan with bank of baroda & i also co-applicant in this loan.

    NOW MY QUESTION IS CAN WE TRANSFER OUR LOAN IN SBI MAX GAIN LOAN IS IT POSSIBLE ?

    Thanks & Regards,
    Pankaj

    • Tarini
      Tarini
      June 18, 2014 at 3:14 pm
      Reply

      Hi Pankaj

      Yes! You can transfer your loan to SBI Maxgain.
      If your wife is the first owner of property and first applicant of loan too, the you can avail the special women’s interest rate of 10.10% (loan under 75 lakhs) or 10.25% (for loan above 75 lakhs) while switching to SBI. (for more details on this special home loan scheme, kindly refer to; http://switchme.in/blog/2014/01/sbi-home-loan-scheme-best-deal-for-women-borrowers/)

      Further, if your loan is in Mumbai, you can sign up at http://switchme.in/switch-home-loan and have us do the entire switching process (paper work, visiting banks, all other legal formalities) for you 🙂

  92. Tejas
    June 18, 2014 at 11:38 am
    Reply

    I have 75Lacs loan under max gain from SBI and outstanding balance is only 54L. I have few questions.

    1 if I park 54L in my Loan/OD account, why do i have to pay any principal because there is no outstanding balance? Of course no interest since there is no outstanding balance.

    2.If they do make me pay my principal amount even if there is no outstaniding balance which means I have paid more principal then I owe. How those additional amount will be reflected?

    Thank you for your help..

    • Tarini
      Tarini
      July 10, 2014 at 3:52 pm
      Reply

      Hi Tejas
      Here is a clarification to your queries;

      1. If your outstanding principal amount is the same as the parked amount in your OD account in this case (54 lakhs), then you will not have to pay any EMI till it continues to remain equal.
      2. The bank will not make you pay principal amount separately. Since their electronic deduction system has been instructed to deduct EMI from your account every month, the EMIs will continue to be deducted, but the amount will get deposited back into your OD account. So the bank is technically not charging any EMI for this period.

      • venky
        August 12, 2014 at 5:47 pm
        Reply

        Hi,

        For maxgain, I understand that EMI is deducted from SB account. part of EMI is principal amount, whereby my loan oustanding got reduced, which means for next month the bank will be giving interest for the excess money I’ve in my OD account. will that be at loan rate or lesser

        • Tarini
          Tarini
          August 12, 2014 at 6:12 pm
          Reply

          Hi Venky

          1. In Maxgain home loan if your OD amount exceeds the outstanding principal amount, then the ECS system continues to deduct EMIs from your savings account, which get deposited into the OD.
          2. The bank will not pay you any interest on the surplus amount in your OD account.

  93. Pradeep
    June 8, 2014 at 12:02 am
    Reply

    I have taken a home loan in Oct 2013 with flexible interest rate & at the time interest rate was 9.95% and after increased 10.10% and then increased 10.25% . But now SBI offering 10.15%, but my interest rate still 10.25%.
    can you please clarify?

    • Tarini
      Tarini
      June 10, 2014 at 3:46 pm
      Reply

      Hi Pradeep
      When you take a loan on flexible interest rate, the rates are bound to increase with increase in base rate or spread of bank. However, when the rates comes down, its a common practice across banks to not reduce the interest rates. So if you want to come down to the current rate of 10.15%, you can convert to it by paying a small processing fee.
      Kindly sign up at http://switchme.in/switch-home-loan to have us do all the paperwork and leg work for you.

  94. Sarb Deep
    June 6, 2014 at 10:24 am
    Reply

    Hello,

    I am going for SBI MAX gain Home loan for 30 lakhs where total cost of the flat is 55 lakhs.
    I have already paid 10 lakhs rupees initially to the builder.

    Now builder is asking for 5 lakhs rupees, which i am planning to get it from SBI.
    My question is after bank disperse 5 lakhs to builder, if i put 5 lakh to my OD. Do i need to pay any interest??
    Bank manager is asking me till the time we disperse full amount we are only going to charge interest.

    Any suggestions.

    • Tarini
      Tarini
      June 10, 2014 at 4:37 pm
      Reply

      Hi Sarb Deep

      Answering your question; yes, you will have to pay interest on the dispersed amount of Rs. 5 lakhs to SBI. Till the loan is fully disbused, you will have to pay only interest. Once the loan is fully disbursed, you can start repaying the principal amount as well. Until full disbursement of loan, pre payment/ repayment of loan amount is not allowed.

  95. Nitin
    June 3, 2014 at 4:16 pm
    Reply

    Hi,
    My current home loan is in Axis and intrest rate is 10.75%. for 26 lacks
    From july 2011 to till date. and total years 20 up to ( 2034)
    I would like to switch in to SBI maxgain home loan.
    My questoin is shoud I pay some prepay in to axis and then switch to SBI please suggest me.

    • Tarini
      Tarini
      June 4, 2014 at 7:50 pm
      Reply

      Hi Nitin
      Since pre payment penalty is banned by the RBI, prepaying the loan before or after switching will have the same impact. According to our calculator, here is how much you will save by switching to SBI, considering your current principal amount: http://switchme.in/home-loan-comparison/538f2a7f10db5
      However, after pre payment your savings may vary substantially. Thus, I advice you to deduct the prepayment amount from your current principal amount and calculate your savings again. Then you can compare the two results and see if after pre payment, switching would still benefit you. If yes, then you can sign up with us and have us do the entire procedure for you.

  96. Savyasachi
    June 2, 2014 at 8:53 pm
    Reply

    Hi,

    My MaxGain account is as follows :
    ROI : 11.75%
    Q : Should I pay the 0.56% and switch to 10.15%
    Sanctioned Amount : 31.15 Lacs
    Final Loan Amount ( final disbursal was last week ) : 27 Lacs
    Current EMI : 29106 INR
    O/D Available : 3.75 Lacs
    Q: Should I let the O/D remain or settle this against 27 lacs to bring the O/s to 23 lacs
    Q: Should I still look to each month deposit any excess into loan a/c to keep brining down the period.

    • Tarini
      Tarini
      June 5, 2014 at 2:55 pm
      Reply

      Hi Savyasachi

      1. Yes you should. By coming down to 10.15% you will be saving substantially in the long run.
      2. If you are sure that you will not need the OD amount in future and have a financially sound emergency fund in place, then you can go ahead with settling the OD amount. By doing so it will reduce your interest burden further, in the long run.
      3. Yes you should! Rather, you should start treating your OD account as a savings bank account and route all your payments through it, so that maximum funds are maintained in it. this will further reduce your interest burden.

  97. rahul
    May 20, 2014 at 6:37 pm
    Reply

    Hi,

    I have few questions regarding MaxGain scheme:

    1. Is interest rate fixed or floating in this scheme?

    2. For loans above 1cr, is it true that SBI charges 0.25% above current home loan rate (10.30%) under MaxGain scheme? i.e. 10.55%

    • Tarini
      Tarini
      May 22, 2014 at 4:01 pm
      Reply

      Hi Rahul
      1. The Maxgain scheme offers a floating interest rate
      2. No. The SBI has only 2 interest rate brackets, up to 75 lakhs and above 75 lakhs. The interest rate for home loans above 75 lakhs is 10.30% which is applicable to normal loans and Maxgain home loans.

  98. Sudhir Kalra
    May 2, 2014 at 12:44 am
    Reply

    I have taken Maxgain Home loan. I am not able to understand the amortization schedule. As per my understanding the interest out go should progressively reduce and Principal component increase with every EMI payment, but in my case the amort schedule shows Interest component sometime lower and again next month higher amount.
    for eg
    Date principal due Projected interest
    05/04/14 18325 63935
    05/05/14 20536 61724
    05/06/14 18658 63602
    05/07/14 20862 61398
    05/08/14 18997 62263

    Can someone tell me why/how this must be happening.

    • Tarini
      Tarini
      May 15, 2014 at 5:59 pm
      Reply

      Hi Sudhir
      In the beginning of your loan tenure, the interest component of your EMI will be more than the principal component. This changes gradually. The minor changes in the interest component are normal, it depends on the way your amortization has been calculated. So, there is nothing to worry about 🙂

  99. Ninad Thakur
    April 26, 2014 at 4:57 pm
    Reply

    Dear Tarini,

    Are benefits derived from Max Gain taxable.

    Regards
    Ninad

    • Tarini
      Tarini
      June 10, 2014 at 5:33 pm
      Reply

      Hi Ninad
      Only the principal amount of your EMI is available for tax benefits under section 80C. Any surplus amount parked in your OD account is taxable.

      • ANil
        June 6, 2015 at 3:22 pm
        Reply

        Hi,

        A followup query on this.

        Say I have Parked 1L as surplus in Maxgain HL a/c and interest for this 1L will be reduced from Principal component.

        Will the interest of this 1L amount be taxable ? I understand that I will be paying tax for the 1L which I earn but it’s about the interest amount earned out of this 1L surplus amount.

        Thanks !!

        • Tarini
          Tarini
          June 10, 2015 at 4:18 pm
          Reply

          Hey Anil

          I think you’re a bit confused about how the maxgain OD account works. No interest is charged on deposits made in OD account. OD account serves 2 functions for a borrower:
          1. Helps in reducing the outstanding principal amount on which the monthly interest is calculated on. This means that if you have a loan of 30 lakhs and have deposited 10 lakhs in your OD account, then you will need to pay interest only on the remaining 20 lakhs and not the entire amount.
          2. So you can park all your extra liquid money in OD account and direct all your bill payments from there. Since in Maxgain interest is calculated on a daily basis, keeping the principal amount low even for a short period of time can help save considerably on interest payments.

          I hope this addresses all your concerns.

  100. neeraj
    April 23, 2014 at 8:20 pm
    Reply

    If I am making a deposit to a maxgain account, how does the bank choose whether I am paying the loan amount or merely parking the amount?

    • Tarini
      Tarini
      April 23, 2014 at 11:04 pm
      Reply

      Hi Neeraj,
      If you make a deposit into your maxgain account then it is understood as it being parked there, unless you notify your bank in writing that you want to repay the loan.

  101. Dhiman Sarkar
    April 19, 2014 at 9:28 pm
    Reply

    dear Tarini,

    My wife along with me have the SBI MAXGAIN HL-TL (WOMEN) for a loan amount of Rs. 30,00,000/- sanctioned along with a insurance premium of Rs 78,880/- (Rin Raksha) – total EMI comes to Rs. 28,196/- (@ 10.10%) as per our loan arrangement letter.

    As it is a under-construction flat, we have a disbursement of Rs. 20,00,000/- on 09.04.2014 debited to our loan account. We have signed for a full EMI SI w.e.f. 15.04.2014. But on 15th, only, Rs. 27,473/- was credited to loan account from our servings a/c. it is my assumption, that the interest shall be credited on end of each month, but why it is Rs. 27,473/- instead of Rs. 28,196/- ?

    What will be the interest portion of the Rs. 27,473/- and principal portion?

    can i claim income tax deduction as required by me when the ownership is 50% each?

    • Tarini
      Tarini
      April 22, 2014 at 5:22 pm
      Reply

      Hi Dhiman,
      Kindly check with your bank for more details on the interest portion of your EMI, as this is case specific.
      Yes, you can claim tax benefits on your home loan if you are a 50% owner of the property.Ask your bank for an interest certificate (it will specify the interest and principal components of EMI paid in the entire year), and attach it with your IT returns to claim benefits.

  102. Hari
    March 20, 2014 at 12:01 am
    Reply

    Hi,
    I am planning to take a home loan from SBI preferably with max gain.
    Can you please let me know the process to be followed and the numbers days it takes to verify the documents and sanction the loan?

    • Tarini
      Tarini
      March 20, 2014 at 7:11 pm
      Reply

      Hi Hari
      Get in touch with the nearest SBI Branch and they will walk you through the requirements and process. On an average, SBI take around a month to process an application. If you are in Mumbai, you can get in touch with us on opsATswitchme.in for further guidance by our experts.

  103. Manish
    March 15, 2014 at 4:49 pm
    Reply

    I have a maxgain home loan, I was taken loan on Feb2012, with flexible interest rate. at the time of loan start it was 10.5 and now SBI offering 10.10, but my interest rate still the same.

    can you please clarify?

    • Tarini
      Tarini
      March 18, 2014 at 2:20 pm
      Reply

      Hi Manish,
      Yes, at present SBI is offering maxgain at 10.10%, but your interest rate is still the same as you are an old customer. Sadly, the new rate is applicable only to new applicants. If you wish to avail the lower interest rate, contact your bank manager or sign up at http://www.switchMe.in and have us do all the paper work for you.

  104. sachin
    March 12, 2014 at 7:27 pm
    Reply

    I have a question about FAQ #6:
    “6. If my loan amount is Rs. 30 lakhs and my parked surplus amount is also Rs. 30 lakhs, does it mean that my loan is closed & I can claim my property papers from SBI?”

    You have said, “This means that only your interest outgo will become zero and you will still have to pay the principal component of the EMI”.

    If we park surplus amount equal to loan amount, does not mean that principal component of EMI is vanished?

    • Tarini
      Tarini
      March 18, 2014 at 2:13 pm
      Reply

      Hi Sachin,
      If your loan amount is equal to the parked surplus amount then it does not means that your principal component vanishes, only your interest payment towards the loan amount is gone for the time that surplus amount remains. You will still have to pay EMIs for the principal component of your loan.

      • sachin
        March 18, 2014 at 4:47 pm
        Reply

        Hi Tarini,
        Thanks for your reply. I have follow up question here.

        If i have a loan of 7,00,000 with 10.1% interest for 120 months, and say after paying EMI for one year, I want to close the loan account by paying all money in bulk.

        How much money I would need to pay to close the loan account?

        • Tarini
          Tarini
          March 19, 2014 at 2:16 pm
          Reply

          Hi Sachin,
          To close your loan account you will have to pay the total outstanding amount of your loan. Contact your bank manager to assist you further.

  105. Prashant
    March 11, 2014 at 12:10 pm
    Reply

    Hi,
    Following is my situation:
    Description SBI H L MAXGAIN AUG12
    Book Balance -23,03,161.00
    Available Balance 2,62,550.00
    Limit 25,65,711.00
    Uncleared balance 0.00
    Drawing Power 25,65,711.00
    Currency INR
    Rate of Interest (% p.a.) 10.25%
    Lien Amount 0.00

    What is meant by drawing power? SBI HL account shows it as Rs 25,65,711.00. I am need of some money to buy a plot. So is it possible to withdraw Rs 20 lakhs from this account. If yes than how?

    Prashant

    • Sumita Nath
      Sumita Nath
      March 18, 2014 at 2:24 pm
      Reply

      Hi Prashant,

      Drawing Power is nothing but as on date your actual outstanding Principal Amount. You can withdraw Rs 2,62,550 (Available Balance) from your account.

      Thanks,
      Sumita

  106. Thenn
    March 6, 2014 at 5:16 pm
    Reply

    Hi,

    At present, I have SBI -Easy Home loan and paying EMI @10.25%, and wanted to switch to Max Gain mode. If possible, do I need to pay for this conversion? I already paid 16K to convert from higher interest rate 11.75% to normal interest rate after 3 year Fixed. Please advice on this.

    Thanks

    • Sumita Nath
      Sumita Nath
      March 13, 2014 at 2:35 pm
      Reply

      Hi Thenn,

      Yes. SBI will charge you RS 1000/- for the Max Gain Conversion. It will take around a week time to get convert into Max-Gain Account.

      Thanks,
      Sumita

  107. Rajesh
    March 5, 2014 at 11:34 pm
    Reply

    I have a home loan from HDFC and am considering switching to SBI MAxgain. There are some advantages and disadvantages as I see: HDFC takes 0.25% for higher to lower rate conversion. where are in Maxgain as per them they take 0.56 of the sanctioned amount. Which is not so OK for me.

    One more thing that I am not sure in Maxgain? Can I reduce my EMI later and increase tenure If I cannot pay current EMI? This is possible in normal home loan,

    • Sumita Nath
      Sumita Nath
      March 13, 2014 at 5:18 pm
      Reply

      Hi Rajesh,

      It does not matter whether you have MaxGain or Normal Account, EMI can be reduce if you pay some part of principal amount and there is no chance of extention in tenure in both the cases.

      Thanks,
      Sumita

  108. Dhiman Sarkar
    March 5, 2014 at 10:00 am
    Reply

    Respected sir, please let me know the current interest rate for SBI MAX GAIN home loan for a loan amount of Rs. 30,00,000/- for a period of 25 years and what would be the approximate EMI ?

    • admin
      admin
      March 5, 2014 at 10:12 am
      Reply

      Dhiman,

      It is 10.15%. EMI would be approx Rs 27,600.

  109. Raghavendra
    March 3, 2014 at 4:03 am
    Reply

    Hello Team,

    Your efforts in creating awareness of the product is extremely appreciable and infact feel something for SBI Staff to improve upon . I have a query on Maxgain which could be silly. Currently I have a Maxgain loan and I’m considering for prepayment instead of maintaining surplus. Could you please advise me over prepayment vs surplus parking in Maxgain? Which could be beneficial?

    Thanks,
    Raghavendra

    • admin
      admin
      March 3, 2014 at 2:36 pm
      Reply

      Raghavendra,

      Thank you for your kind words.

      In case of Maxgain, additional payment works exactly like prepayment. So, you don’t need to do anything. Just close the account when the entire amount is paid.

  110. Sandeep
    February 22, 2014 at 4:04 pm
    Reply

    I have an SBI teaser home loan and it switched to floating interest rate this month. Will I be able to switch over to SBI Max Gain? I had asked this question to the Bank Manager, to which he replied that these two are entirely different loan products and hence cannot be switched.

    • Tarini
      Tarini
      March 18, 2014 at 3:38 pm
      Reply

      Hi Sandeep,
      Yes, you can switch to SBI Maxgain from you teaser home loan, provided you have had this teaser home loan for a period of 3 years or above. Contact your bank manager for the same or sign up at http://www.switchMe.in and have us carry out the entire process for you.

  111. Ratul
    February 4, 2014 at 6:43 pm
    Reply

    I have a normal home loan from SBI. Can this home loan be converted to SBI maxgain home loan? Please advice.

    • Tarini
      Tarini
      February 6, 2014 at 1:08 pm
      Reply

      Ratul
      Yes, it can be converted to SBI Maxgain. But before converting you need to weigh the costs and benefits involved. You can mail us your details at ops@switchme.in, we will be able to guide you better that way.

  112. Siva
    February 3, 2014 at 7:45 pm
    Reply

    I had converted my maxgain home loan with 11.75% to current ROI. SBI has charged 0.56% on the sanctioned loan amount (not on the current loan balance). I am confused, as I was thinking they will charge on the outstanding balance. Can you please clarify, whether the charges collected from me are correct and it’s 0.56% on the total sanctioned loan amount?

    • admin
      admin
      February 5, 2014 at 4:52 pm
      Reply

      Siva

      Maxgain conversions are on the sanctioned amount

  113. Nirwan
    February 2, 2014 at 4:11 am
    Reply

    SBI MG allow to switch interest rate one time while this is liable of .59% on Limit/Drawing Power. Today Interest rate applicable for me is 11.75% where currently bank is offering at 10.15%.

    My current Drawing Power is: 22L where have book balance of 6.8L. I might required 6.5L while taking position of apartment to pay towards Registration & Builder. I’m expecting apartment to be available in another three months but not early.

    Other options is to wait for position & apply for reducing Limit/Drawing Power (as limit reduction is not possible for under construction property). Then apply for the interest rate reduction/switch.

    Can someone suggest do I switch between the interest rate now or wait for the position of apartment?
    And How to calculate the reduction rate to know for each interest rate to know I’m gaining/losing the money.

    • admin
      admin
      February 5, 2014 at 4:57 pm
      Reply

      It would be better to wait to get possession of the property before initiating a switch. At that time, look at the available options and then decide.

  114. Ashish
    January 31, 2014 at 8:51 pm
    Reply

    Oops. The above post of “To elaborate question 6 further” is not my post but seems its by my name

  115. Ashish
    January 30, 2014 at 11:50 pm
    Reply

    To elaborate question 6 further
    6. If my loan amount is Rs. 30 lakhs and my parked surplus amount is also Rs. 30 lakhs, what happens to the book balance? As per your explaination, available balance should keep increasing by interest saved but in that case the book balance will go negative!

    what is the meaning of negative book balance in that case

    • Tarini
      Tarini
      January 31, 2014 at 5:47 pm
      Reply

      Ashish
      There will be no negative book balance in this case. The book balance will remain zero as you parked surplus amount is equal to the principal amount. At this point, if you want to foreclose your loan, you will have to write a letter to SBI requesting them to do so.

  116. Ashish
    January 30, 2014 at 7:31 pm
    Reply

    Actually i have some od balance of around 4-5 lakhs which i dont want i should be able to withdraw. So thinking of some option to do prepayment of that amount to reduce my loan tenure or EMI which will block me to withdraw it.

    • Tarini
      Tarini
      January 31, 2014 at 5:43 pm
      Reply

      Ashish
      This is a rare query. You can write a letter to SBI asking them to reduce the sanction amount. Or invest it a long term fixed deposit, though its not the best solution. Prepayment can also be an option to consider.In the end, there is no substitute to exercising your own will. You can get rid of your Maxgain account cheque book and debit card as an extreme measure to prevent yourself from withdrawing the OD balance.

  117. Ashish
    January 30, 2014 at 7:12 am
    Reply

    Hello
    I am using maxgain account. I want to do some prepayment which i should not be able withdraw. I mean i want to reduce my OD limit by prepayment. Is there option to do that?

    Thanks
    Ashish

    • Tarini
      Tarini
      January 30, 2014 at 6:04 pm
      Reply

      Ashish
      Prepayment of loan is not connected to limit on your OD account. contact the bank to lower limit of your OD account.

  118. Raghu
    January 25, 2014 at 4:21 pm
    Reply

    Dear Sir
    i have bought a flat in Pune in Aug 2012.My current Lender is HDFC .Current outstanding is 39.2 Lacs with rate of interest of 10.9%
    My query is
    1.My wife is co-applicant and co-owner of the said flat.If i switch to SBI’s maxgain will i be offered 10.10% instead of 10.15%
    2.Is there any minimum amount that needs to be always parked in
    3.On this site the charges required to transfer my loan is around 21 thousand.Are there any additional charges i need to shell out?
    4.The home loan is already insured for first 5 years with HDFC.Do i need to purchase a new insurance again?

    • admin
      admin
      January 27, 2014 at 12:02 pm
      Reply

      Raghu,

      1. Yes!
      2. No
      3. The charges shown are the charges for Mumbai. Stamp duty for Pune could be a bit different. The other charges remain the same. SwitchMe would be available in Pune in Feb.
      4. SBI would want your property to be insured. If you already have an insurance then new insurance is not required.

  119. raj
    January 21, 2014 at 5:18 pm
    Reply

    Hi please do clarify my few queries on SBI max gain for a under construction flat

    1. Can there be a co applicant for the loan or needs to be a single applicant, specifically for the max gain
    2. Does the co applicant should be co buyer in the sale and construction agreement
    3. And i was told by the personnel that SBI will loan a additional amount apart from the sanctioned loan for my life insurance. I have taken life insurance from LIC already. Are they pushing it along with the home loan or is it a mandatory process.

    looking forward

    • admin
      admin
      January 22, 2014 at 12:30 pm
      Reply

      Raj

      1. You can have a co-applicant
      2. No the co-applicant need not be a buyer but needs to be a close relative
      3. If you have insurance then additional insurance is not needed.

      • raj
        January 27, 2014 at 8:20 pm
        Reply

        Hi thanks for the info, do clarify my few more queries
        1. Can i capitalise the interest during the moratorium period in max gain
        i.e. take a complete payment holiday for 12 months and then start the emi including the interest for that period
        i was told that this option is not available for max gain and is only applicable for normal term loan. is it so?
        2. The interest rate at SBI is said to be 10.15% for below 75 lacs wef from 20/12/13 as on their web page.
        But as i conversed with the branch i was informed it is 10.5% for a 70 lac loan amount.
        3. And the Rin riksha SBI insurance is said mandatory by the manager, do you suggest any other alternative or to take the same

        looking forward

        • Tarini
          Tarini
          January 29, 2014 at 2:33 pm
          Reply

          Raj
          1. Yes, on a new flat it is allowed upto 18 months.
          2. Yes you are correct. The interest rate for below 75 lakhs is 10.15%, the branch may not have been updated yet.
          3. No, taking loan insurance from SBI itself is not mandatory. But having a property insurance is compulsory. You can take that from any bank you like.

          • raj
            February 7, 2014 at 8:30 am

            Hi thanks for all the wonderful replies, got one more query
            I am applying for a max gain of a under construction flat.
            I was asked for a interim security till the completion of the flat, which i understand to be a routine procedure.
            But now i am told that the property given for the interim security will be equitable mortgaged till the completion of the flat. Is this a necessary?

  120. Amit
    January 14, 2014 at 1:24 pm
    Reply

    Dear Sir,
    I have bought the flat in June-2010 in Banagalrore and opted for SBI Max gain. At that time
    interest was like this :
    1st Year – 8%
    2-3 Year – 9%
    4th onwards – Base Rate + 1.75% (as per our aggrement with bank) => 11.75 % as of now

    But if we see SBI current rate for home loan is aroung 10.25%.

    My question is that do I need to pay this much difference in Interest, for just having Max gain account ?

    • admin
      admin
      January 15, 2014 at 9:52 am
      Reply

      Amit,

      This difference in rates is not because of MaxGain scheme. It is because of the lower interest rate that you paid earlier and/or your risk profile. You can lower this by switching your loan to a lower rate of interest (within SBI or other banks)

      • Amit
        January 15, 2014 at 4:25 pm
        Reply

        But, that was the offer at that time SBI was giving to every customer. Now this unfair that they charge 11.75%.
        Do you have any idea on procedure if I transfer the loan to new SBI max gain, how much it will cost ?

        • admin
          admin
          January 21, 2014 at 6:28 pm
          Reply

          SBI will charge a conversion fee of 0.25% to reduce the interest rate

  121. Murali
    January 13, 2014 at 9:23 am
    Reply

    Dear Sir,

    I have availed SBI home loan under Maxgain scheme for purchase of a plot.Please let me know if I need to commence the construction within 2 years under this scheme as well.

    • Tarini
      Tarini
      January 13, 2014 at 4:49 pm
      Reply

      Dear Murali,
      Under the Maxgain Home Loan scheme, you need to commence construction up-to within 3 years of taking the loan. However, please check with SBI what they have put on your specific case. It would be on your sanction letter.

    • Sujeet
      April 28, 2014 at 10:21 am
      Reply

      Hi,
      I am availing MaxGain Home loan from SBI and SBI Has sanctioned an amount of 62 lakhs. However, out of this amount, I have already paid Rs. 7.5 lakhs from my personal funds to the builder as the loan process got delayed and the builder had raised a demand. Now, can i claim this amount from SBI by showing the payment receipt? Can i do it right away? This amount is included in the sanctioned amount of Rs 62 lakhs.
      Thanks,
      Sujeet.

      • Tarini
        Tarini
        April 29, 2014 at 3:44 pm
        Reply

        Hi Sujeet,
        What i understand from your description is that, the 7.5 lakhs paid by you was supposed to be paid from the loan, but due to some delay you had to pay it from your personal funds. So, now you do not need to claim any amount from SBI as the loan sanction amount is still the same as before. You can use the entire sum of 62 lakhs, sanctioned by SBI.

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