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 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

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

  1. pradeep
    Oct 01 2015 at 9:28 pm

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

    • Tarini
      Oct 07 2015 at 7:16 pm

      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 🙂

  2. meet
    Sep 29 2015 at 4:16 pm


    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
      Oct 01 2015 at 3:14 pm

      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.

  3. amiit gupta
    Sep 26 2015 at 11:01 am

    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.

    Amiit G

    • Tarini
      Oct 01 2015 at 3:00 pm

      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 🙂

  4. sree
    Sep 22 2015 at 7:26 pm

    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
      Oct 01 2015 at 4:26 pm

      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 🙂

  5. Jeetesh
    Sep 22 2015 at 7:13 pm

    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.


    • Tarini
      Sep 23 2015 at 7:22 pm

      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 🙂

  6. uma
    Sep 10 2015 at 8:00 pm

    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
      Sep 14 2015 at 8:18 pm

      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 🙂

  7. ARUN A.C.
    Aug 14 2015 at 2:06 pm

    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


    • Tarini
      Aug 14 2015 at 8:41 pm

      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 🙂

  8. Sanket Karmarkar
    Jul 25 2015 at 4:06 am

    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

    Sanket Karmarkar

    • Tarini
      Jul 28 2015 at 6:40 pm

      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.

  9. Viswanath
    Jul 20 2015 at 12:05 pm

    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
    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
      Aug 12 2015 at 7:01 pm

      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
      Dec 11 2015 at 5:50 pm

      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?


    • Tarini
      Dec 14 2015 at 3:14 pm

      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.

  10. Goldi Mishra
    Jul 16 2015 at 4:28 pm

    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
      Jul 20 2015 at 12:43 pm

      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.

  11. Goldi Mishra
    Jul 16 2015 at 4:13 pm

    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
      Jul 20 2015 at 5:14 pm

      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 🙂

  12. Amit
    Jul 16 2015 at 3:14 pm

    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
      Jul 20 2015 at 5:27 pm

      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!

  13. Arun
    Jul 09 2015 at 1:07 pm

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

    • Tarini
      Jul 23 2015 at 1:26 pm

      Hey Arun

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

  14. Santosh
    Jul 08 2015 at 12:36 pm

    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
      Aug 05 2015 at 3:06 pm

      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 🙂

  15. Parashar Tabib
    Jun 25 2015 at 5:54 pm

    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
      Jul 01 2015 at 12:29 pm

      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.

  16. Vivek
    Jun 19 2015 at 12:23 am

    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
      Jun 19 2015 at 1:07 pm

      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! 🙂

  17. Vivekanandan
    Jun 13 2015 at 4:11 pm


    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?


    • Tarini
      Jun 15 2015 at 4:24 pm

      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 :/

  18. Shirish
    Jun 03 2015 at 8:45 am

    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 .

    Shirish S (9823138249)

    • Tarini
      Jun 15 2015 at 5:17 pm

      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 .
      Jun 16 2015 at 11:58 am

      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
      Jun 16 2015 at 5:09 pm

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

    • anir
      Aug 10 2015 at 12:11 pm

      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
      Aug 10 2015 at 1:29 pm

      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
      Aug 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
      Aug 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
      Aug 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
      Aug 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
      Sep 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?



    • Tarini
      Sep 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.

  19. Rohit
    May 31 2015 at 8:46 pm

    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
      Aug 12 2015 at 7:31 pm

      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.

  20. Deb
    May 28 2015 at 5:27 pm

    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.

    • Tarini
      Aug 12 2015 at 7:33 pm

      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 :/

  21. Nani
    May 14 2015 at 4:58 pm

    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.

    Nani Chandra

  22. Ashish Arora
    May 06 2015 at 10:16 am

    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 06 2015 at 6:44 pm

      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.

    • Sam
      May 08 2015 at 8:56 am

      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 08 2015 at 2:56 pm

      Hi Sam,

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

  23. chandra
    Apr 28 2015 at 9:47 pm

    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
      Aug 13 2015 at 1:18 pm

      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 🙂

  24. suyog s zawar
    Apr 17 2015 at 6:25 pm

    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
      Aug 13 2015 at 4:04 pm

      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.

  25. Nikita maheshwari
    Apr 17 2015 at 10:46 am

    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
      Apr 20 2015 at 6:28 pm

      Hi Nikita,

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

  26. Shijil A
    Apr 13 2015 at 10:19 am

    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??


    • Tarini
      Jun 10 2015 at 5:20 pm

      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.

  27. Bhuvaneswari Sivakumar
    Apr 10 2015 at 3:38 pm

    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
      Apr 13 2015 at 4:06 pm

      Dear Bhuvaneswari,

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

  28. Yogesh
    Apr 10 2015 at 11:54 am

    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.


    • Priyanka
      May 08 2015 at 3:18 pm

      Hi Yogesh,

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

  29. Sanjeev
    Mar 29 2015 at 11:51 am

    Hi Tarini,

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


    • Ashwini Menon
      Ashwini Menon
      Mar 31 2015 at 3:54 pm

      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.

  30. Kiran
    Mar 09 2015 at 8:42 pm

    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).


    • Ashwini Menon
      Ashwini Menon
      Apr 01 2015 at 3:21 pm

      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.

  31. Ashwini
    Mar 09 2015 at 11:20 am

    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

    • Tarini
      Mar 09 2015 at 7:20 pm

      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
      Mar 10 2015 at 11:22 am

      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
      Mar 10 2015 at 7:10 pm

      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
      Mar 10 2015 at 7:55 pm

      okay, thank you so much tarini..

  32. Satish Ranga
    Mar 07 2015 at 4:46 pm

    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 ???


    • Tarini
      Mar 09 2015 at 6:23 pm

      Hey Satish

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

  33. Bond
    Mar 06 2015 at 5:22 pm

    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
      Mar 09 2015 at 6:59 pm

      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 🙂

  34. Ramkumar
    Mar 04 2015 at 6:00 pm


    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.


    • Tarini
      Mar 04 2015 at 7:10 pm

      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
      Mar 04 2015 at 8:18 pm

      Thanks for your quick reply Tarini.

    • Tarini
      Mar 04 2015 at 8:46 pm


  35. Dr Rajiv
    Feb 26 2015 at 6:30 am

    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


    Dr Rajiv,

    • Tarini
      Mar 12 2015 at 4:55 pm

      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.

  36. milind bhagat
    Feb 24 2015 at 12:14 pm

    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
      Feb 24 2015 at 3:15 pm

      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.

  37. S.Sivaperumal
    Feb 13 2015 at 5:51 pm

    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
      Feb 13 2015 at 6:18 pm

      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

  38. yogesh
    Feb 12 2015 at 5:37 pm

    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.

    • Tarini
      Feb 13 2015 at 7:58 pm

      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.

  39. Ajit
    Jan 28 2015 at 8:25 am


    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.


    • Tarini
      Jan 30 2015 at 3:41 pm

      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.

  40. ANKUR
    Jan 17 2015 at 12:23 am

    Description SBI H L MAXGAIN AUG12
    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

    • Tarini
      Jan 19 2015 at 1:03 pm

      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
      Jan 29 2015 at 6:53 pm


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

    • Tarini
      Jan 30 2015 at 3:11 pm

      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.

  41. R. Vydianathan
    Jan 16 2015 at 6:14 pm

    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?
    R. Vydianathan

    • Tarini
      Jan 16 2015 at 6:47 pm

      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.

  42. Bharath
    Jan 05 2015 at 3:26 pm

    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,

    • Tarini
      Jan 22 2015 at 7:10 pm

      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.

  43. Sunil Rana
    Jan 03 2015 at 4:26 am

    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.

    • Tarini
      Jan 05 2015 at 9:07 pm

      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.

  44. Sudip Basu
    Dec 23 2014 at 2:24 pm

    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
      Dec 23 2014 at 3:32 pm

      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.

  45. Nirmal
    Dec 17 2014 at 6:58 pm

    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
      Dec 26 2014 at 11:12 am

      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.

  46. Jitu
    Dec 16 2014 at 5:27 pm

    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
      Dec 16 2014 at 6:01 pm

      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
      Jan 02 2015 at 6:10 pm


      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
      Jan 05 2015 at 7:56 pm

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

  47. Jitu
    Dec 15 2014 at 1:08 pm

    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
      Dec 15 2014 at 5:10 pm

      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
      Dec 15 2014 at 6:13 pm

      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
      Dec 15 2014 at 7:30 pm

      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
      Dec 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
      Dec 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.

  48. madabouthrodricks
    Dec 02 2014 at 10:24 pm


    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
      Dec 03 2014 at 5:13 pm

      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.

  49. Gopinath
    Nov 18 2014 at 8:35 am

    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


    • Chintan Udani
      Nov 18 2014 at 11:24 am

      Hi Gopi,

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

  50. Gopinath
    Nov 17 2014 at 8:47 am

    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!


    • Chintan Udani
      Nov 17 2014 at 12:39 pm

      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.