SBI Maxgain Home Loan: Review

Updated on December 18, 20185 mins read
SBI Max Gain

(Updated March 2018)

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 8.60% for a term of 20 years.  (As in March 2018)

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 8.55% for borrowers but Maxgain is available for 8.60% (As in March 2018)

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 if you wish to switch home loan from the comfort of your home and have us do all the legwork for you, Sign up here. Make use of the calculator below to see how much you can save by transferring your home loan to SBI’s Maxgain home loan. 9. Is SBI Maxgain a unique product? SBI Maxgain is a home saver loan product. There are other banks that offer such products too. Here is our review on Bank of Baroda home loan advantage, a home saver product. Download SBI Maxgain Amortization Schedule We have countless happy customers who have opted for SBI Maxgain while taking their home loan or switching their loan. For instance, Mr. Jyotirmaya Mishra said , “I truly appreciate SwitchMe executives for their continued support, enthusiasm and dedication towards their job. I can say proudly without their support it wouldn’t have been possible.” Signup for personalised advise, end-to-end service on home loan, and online updates on loan application!


Tarini

Tarini

Tarini comes with a degree in Mass Communication and Media studies. She joined SwitchME as a content writer and moved on to being an assistant product manager. Tarini is an experienced Content Strategist with a background in Product development and management. She is skilled in SEO, social media strategy and online content marketing and likes to travel when possible
301 COMMENTS

Have a question? Post it here and we will get back to you within 1 working day.

  1. Saravanan
    Nov 08 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
      Nov 08 2014 at 11:26 am

      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.

  2. Saravanan
    Nov 06 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
      Nov 06 2014 at 1:35 pm

      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
      Nov 06 2014 at 8:32 pm

      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
      Nov 07 2014 at 3:29 pm

      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
      Nov 07 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
      Nov 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.

  3. anjana
    Oct 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
      Oct 28 2014 at 12:24 pm

      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

  4. Raghav
    Oct 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
      Oct 30 2014 at 11:24 am

      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.

  5. Goldi Mishra
    Oct 06 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
      Oct 06 2014 at 2:55 pm

      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 🙂

  6. Raghu Kumar
    Oct 04 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
      Oct 04 2014 at 6:45 pm

      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%.

  7. Rishi Kuamr
    Oct 04 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
      Oct 04 2014 at 6:39 pm

      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.

  8. Vijay
    Sep 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
      Sep 20 2014 at 1:07 pm

      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.

  9. Sundar
    Aug 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
      Aug 26 2014 at 5:26 pm

      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
      Sep 07 2014 at 4:08 pm

      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
      Sep 09 2014 at 5:15 pm

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

  10. Sendhil Kumar
    Aug 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
      Aug 20 2014 at 6:43 pm

      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.

  11. ARUN KUMAR
    Aug 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
      Aug 12 2014 at 6:23 pm

      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
      Aug 12 2014 at 8:18 pm

      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
      Aug 20 2014 at 5:35 pm

      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.

  12. Suman
    Aug 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
      Aug 11 2014 at 5:55 pm

      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
      Aug 12 2014 at 12:06 am

      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
      Aug 12 2014 at 6:05 pm

      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 🙂

  13. Aiman
    Aug 09 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
      Aug 11 2014 at 6:18 pm

      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 🙂

  14. Tom
    Aug 07 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
      Aug 08 2014 at 6:35 pm

      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.

  15. VIJAY
    Aug 05 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
      Aug 08 2014 at 6:41 pm

      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.

  16. Sachin
    Aug 02 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
      Aug 05 2014 at 1:29 pm

      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
      Aug 05 2014 at 6:58 pm

      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
      Aug 06 2014 at 3:43 pm

      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.

  17. Haraprasad Sahoo
    Jul 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
      Jul 14 2014 at 2:00 pm

      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.

  18. Vaibhav Vidhate
    Jul 06 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
      Jul 07 2014 at 2:51 pm

      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.

  19. Gabriel raj
    Jun 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
      Jun 23 2014 at 4:40 pm

      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
      Jun 23 2014 at 5:35 pm

      Thanks Tarini.

    • Tarini
      Tarini
      Jun 24 2014 at 2:07 pm

      Happy to help 🙂

  20. Pankaj Khodakiya
    Jun 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
      Jun 18 2014 at 3:14 pm

      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 🙂

  21. Tejas
    Jun 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
      Jul 10 2014 at 3:52 pm

      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
      Aug 12 2014 at 5:47 pm

      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
      Aug 12 2014 at 6:12 pm

      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.

  22. Pradeep
    Jun 08 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
      Jun 10 2014 at 3:46 pm

      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.

  23. Sarb Deep
    Jun 06 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
      Jun 10 2014 at 4:37 pm

      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.

  24. Nitin
    Jun 03 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
      Jun 04 2014 at 7:50 pm

      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.

  25. Savyasachi
    Jun 02 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
      Jun 05 2014 at 2:55 pm

      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.

  26. 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

      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.

  27. Sudhir Kalra
    May 02 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

      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 🙂

  28. Ninad Thakur
    Apr 26 2014 at 4:57 pm
    Reply

    Dear Tarini,

    Are benefits derived from Max Gain taxable.

    Regards
    Ninad

    • Tarini
      Tarini
      Jun 10 2014 at 5:33 pm

      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
      Jun 06 2015 at 3:22 pm

      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
      Jun 10 2015 at 4:18 pm

      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.

  29. neeraj
    Apr 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
      Apr 23 2014 at 11:04 pm

      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.

  30. Dhiman Sarkar
    Apr 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
      Apr 22 2014 at 5:22 pm

      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.

  31. Hari
    Mar 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
      Mar 20 2014 at 7:11 pm

      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.

  32. Manish
    Mar 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
      Mar 18 2014 at 2:20 pm

      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.

  33. sachin
    Mar 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
      Mar 18 2014 at 2:13 pm

      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
      Mar 18 2014 at 4:47 pm

      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
      Mar 19 2014 at 2:16 pm

      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.

  34. Prashant
    Mar 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
      Mar 18 2014 at 2:24 pm

      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

  35. Thenn
    Mar 06 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
      Mar 13 2014 at 2:35 pm

      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

  36. Rajesh
    Mar 05 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
      Mar 13 2014 at 5:18 pm

      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

  37. Dhiman Sarkar
    Mar 05 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
      Mar 05 2014 at 10:12 am

      Dhiman,

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

  38. Raghavendra
    Mar 03 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
      Mar 03 2014 at 2:36 pm

      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.

  39. Sandeep
    Feb 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
      Mar 18 2014 at 3:38 pm

      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.

  40. Ratul
    Feb 04 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
      Feb 06 2014 at 1:08 pm

      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.

  41. Siva
    Feb 03 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
      Feb 05 2014 at 4:52 pm

      Siva

      Maxgain conversions are on the sanctioned amount

  42. Nirwan
    Feb 02 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
      Feb 05 2014 at 4:57 pm

      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.

  43. Ashish
    Jan 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

  44. Ashish
    Jan 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
      Jan 31 2014 at 5:47 pm

      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.

  45. Ashish
    Jan 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
      Jan 31 2014 at 5:43 pm

      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.

  46. Ashish
    Jan 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
      Jan 30 2014 at 6:04 pm

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

  47. Raghu
    Jan 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
      Jan 27 2014 at 12:02 pm

      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.

  48. raj
    Jan 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
      Jan 22 2014 at 12:30 pm

      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
      Jan 27 2014 at 8:20 pm

      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
      Jan 29 2014 at 2:33 pm

      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
      Feb 07 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?

  49. Amit
    Jan 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
      Jan 15 2014 at 9:52 am

      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
      Jan 15 2014 at 4:25 pm

      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
      Jan 21 2014 at 6:28 pm

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

  50. Murali
    Jan 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
      Jan 13 2014 at 4:49 pm

      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
      Apr 28 2014 at 10:21 am

      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
      Apr 29 2014 at 3:44 pm

      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.