SBI Maxgain Home Loan: Frequently asked Questions

Updated on December 18, 20187 mins read
SBI Max Gain

SBI Maxgain Home Loan: Frequently asked Questions (Updated in Jan 2018) Most home loan borrowers face the dilemma of whether to use their monthly savings to prepay their loan or to set it aside for emergencies. SBI’s Maxgain home loan allows you to park this amount in the home loan account and pull it out anytime you need to. The money kept in the home loan account reduces the total interest outgo on your home loan, helping you close the loan faster and save money. Several of our customers have had various doubts and queries regarding Maxgain home loan, so here are a few frequently asked questions by our customers, which will help you get a better understanding of Maxgain home loan:

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

Yes , at present SBI charges 5 basis point more on MaxGain loans. So, the normal term loan is available for 8.30% for women borrowers but Maxgain is available for 8.35%. For male borrowers, the same rates are 8.35% and 8.40% respectively. (As in Jan 2018)

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

At present, SBI is not charging processing fees on any of its home loan products (As in Jan 2018)

3. Is it important to open a savings bank account with SBI?

Yes its necessary to have a savings bank account with SBI to avail maxgain home loan. Without this loan is given in rare cases, involving huge loan amounts.

4. 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 any insurances from sister concerns of SBI.

5. Is there any minimum amount that needs to be always parked in the over draft account?

No, there is no compulsion to park a certain amount at all times in your maxgain OD account.

6. My wife is a co-applicant and co-owner of the property. If I switch to SBI’s maxgain, will I be offered 8.35% instead of 8.40% (adhering to 0.05% rebate for women applicants)?

Yes! But for this your wife must be listed as the first owner in your property papers.  (As in Jan 2018)

7. Can I claim income tax benefit for principal repayment with 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.

8. 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.

9. 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 as long as both remain equal, you will not have to pay any EMI to the bank. However, since the bank’s ECS has been instructed to deduct a certain EMI from your account every month, the EMIs will continue to be deducted. These will then get deposited into your OD account. So technically the bank will not be charging any EMI. At this point if you want to close your loan, inform the SBI in written. They will adjust your parked surplus amount towards the outstanding loan amount and your loan will stand closed.

10. 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. So park only that much surplus, you feel you‘ll not need even in an extreme emergency.

11. I have availed Maxgain home loan from SBI for purchase of a plot. Do I need to commence the construction within 2 years?

Under the Maxgain Home Loan scheme, you need to commence construction up-to/within 3 years of taking the loan.

12. Can I have  a co applicant for applying to maxgain home loan? Does the co applicant need to be a co- buyer in the property?

You can have a co-applicant while applying for maxgain. It need not be a buyer but it must be a close relative.

13. Can I capitalize interest during the moratorium period in max gain i.e. take a complete payment holiday for 12 months and then start paying EMI; including 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?

No, this option is available on maxgain home loans as well. On a new flat, you are allowed to take a payment break for a period of 18 months.

14. If I’m parking some money on monthly basis or in lump sum, will my loan term come down or EMI go down?

Neither your EMI nor your loan term will be reduced. By parking money in your maxgain account, you will reduce your interest outgo. The principal amount on which interest is payable is the difference of your total principal amount and money parked. so by parking savings in maxgain account you can save money on interest outgo every month.

15. How can I calculate my saving in Max Gain?

To calculate actual savings, demand a loan SBI Maxgain home loan repayment calculator and compare the scheduled interest outgo as per your loan amortization schedule & the actual interest outgo. To understand how to read an amortization schedule, you will find our post useful.

16. What should I do to maximize the savings in Max Gain?

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

  • Start using this account as the primary money parking account for all your liquid finances.
  • Route all your transactions through maxgain account (payment of utility bills, online shopping, credit card payments), If possible.
  •  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.
  • You can also avail ATM card facility on the OD account or link it to an existing SBI savings account to avail the same.
  • 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.

17. I am able to transfer money from my existing net banking enabled savings account to Maxgain account, but can’t do the reverse. Why? 

This may be because net banking has not been enabled on your maxgain account yet. Once the final disbursement has been done, you can apply for transaction rights, until then you can only make deposits.

18. Can I pay for my utility bills, credit card payments, online shopping from Max Gain?

Yes, you can! Treat your maxgain account as your primary money parking account & route all your transactions through it. This will help bring down your interest outgo substantially.

19. I used my Maxgain account ATM card to withdraw cash from other bank’s ATM and I was charged a transaction fee for the first transaction in the month. Why?

According to RBI regulations, 5 transactions on another banks’ ATM are free only for savings bank accounts. This regulation doesn’t apply in this case as maxgain is an over draft account The reason is, as per RBI’s circular 5 transactions on other banks’ ATM are free only for SB account & in this case, you forget the point that your MG account is not SB account. it’s an overdraft account.

20. What is drawing power?

Drawing Power is your as on date actual outstanding Principal Amount.

21. What is available balance?

Available balance is the amount that you can withdraw from your Maxgain account any time you want.

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

Yes, you can. Get in touch with your loan manager for the same and ask for the following documents;

  • Loan Account statement from day one.
  • List of Documents, which were submitted by you at the time of availing original loan. In day to day language of bankers, it’s called LOD.
  • Outstanding loan balance with applicable interest, penalty & any other fee to close the loan.

Are you interested in taking or switching to SBI Maxgain home loan? Sign up now for checking interest rates, eligibility, savings, costs,  & our advisors will guide and execute the entire procedure, while you enjoy a hassle free experience. SBI Maxgain home loan Our customer Mr. Shiddalingesh took SBI Maxgain and this is what he had to share “The entire loan transfer process has been smooth and well managed in terms of meeting on time, being very clear on the documents needed and the process to be followed.



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. ashish suri
    Oct 06 2018 at 12:15 pm

    My emi got deducted on 5th morning.. but till now.. 6th afternoon.. the emi mt is nt credited to my maxgain account

    • Suma Ganesh
      Suma Ganesh
      Oct 12 2018 at 12:53 pm

      Hi Ashish,
      Is the credit reflecting now?

  2. Jitendra shekhawat
    Oct 01 2018 at 11:19 am

    I have taken home loan of 44 lacs in 2014, now balance amount is 30 lacs. if I deposit 30 lacs in maxgain account, I will practically not be paying any interest on the amount, if my tenure is of 15 yrs and i keep the deposit for the remaining yrs (11 yrs), does that mean that afetr completion of 15 yrs the home will be transfered in my name and my 30 lacs will be transfered back to me.

    • Suma Ganesh
      Suma Ganesh
      Oct 12 2018 at 1:17 pm

      Hi Jitendra,
      Thank you for writing in to us.
      Yes, theoretical that is correct. But practically you may want to consider if you can invest the Rs.30 Lakhs somewhere and generate higher returns.

  3. jp
    Sep 11 2018 at 9:04 pm

    Here is my situation and i need your expert advice.

    Loan start date: Mar 2013
    Tenure 20 yrs
    Book Balance -24,95,716.00
    Available Balance 4,59,618.00
    Limit 29,55,334.00
    Drawing Power 29,55,334.00
    Rate of Interest (% p.a.) 9.2%

    I pay an EMI Rs. 44,582/month.

    I need to understand this data, i have been sending emails to the SBI but never hear back from them.

    I have some extra funds equivalent to the book balance, whats the best option i have.

    1) Should i pre-close my loan account?
    2) park this fund in the loan account and let the loan continue?
    3) others?

    Please advise.

    • Suma Ganesh
      Suma Ganesh
      Sep 28 2018 at 2:22 pm

      Hi Jp,
      Thank you for writing in to us

      Drawing Power is your as-on-date actual outstanding Principal Amount
      Available balance is the amount you may have parked in the account and any un-disbursed amount. You can withdraw this at any time you want.
      Book Balance is difference between drawing power and available balance. That is, loan o/s minus funds available.
      Limit is the over all credit limit

      I hope this was useful.

  4. Ashish
    Sep 04 2018 at 12:12 am

    Hello, first of all thanks to moderator for responding question in timely manner. Hope SBI (people) works in same way someday.


    I have Max Gain account and always keep good amount in OD account (sometime surplus). Account shows limit/drawing power Rs. 5L.

    Now, either I keep 2L or 6L in OD account, in both case, EMI get depoisted back to OD account as is. No deduction.

    So I am not sure about theory that Drawing power is same as actual Principle outstanding.

    It would if great if you share some details.

    • Suma Ganesh
      Suma Ganesh
      Sep 28 2018 at 2:50 pm

      Hi Ashish,
      I think I will need more details to understand the situation better.
      In the meanwhile,
      Drawing Power is your as-on-date actual outstanding Principal Amount
      Available balance is the amount you may have parked in the account and any un-disbursed amount. You can withdraw this at any time you want.
      Book Balance is difference between drawing power and available balance. That is, loan o/s minus funds available.
      Limit is the over all credit limit

      I hope this helps

  5. Atul
    Jun 26 2018 at 10:02 pm

    Hello, this is a fantastic website for Maxgain information. Bank employees also do not provide such detail info 🙂 – I have couple of questions, 1. What is the best way to reduce the Principle amount in MaxGain Home Loan account. 2. If I have 1,00,000 Loan and if my EMI is Rs. 1000 and I have deposited 80,000 in my account. How much Principle would be reduced and what amount the Interest would be charged and how much would that be? You can take any other example if you want.

    Thank you very much

    • Suma Ganesh
      Suma Ganesh
      Jun 27 2018 at 9:25 am

      Hi Atul,

      Thank you for the word of appreciation!
      1) The only way to reduce principal outstanding is to actually repay the loan amount. So if you transfer your surplus to the loan account or pay additional EMIs each month, you will be repaying the loan. Your outstanding balance will reduce.
      2) In your example, if you keep Rs.80,000 in the OD account, you will be charged interest on Rs.20,000 for that period. If you deposit Rs.80,000 into the loan account, your loan outstanding would be reduced to Rs.20,000 permanently. But you would not be able to withdraw this Rs.80,000 thereafter.

  6. lalit kumar
    May 20 2018 at 12:24 pm


    i have taken MC-SBI Home Loan (For Women) of 20 lacs for 20yrs in August 2016. I was told that it is Max gain loan and you can take out the money from loan account to your saving account whenever required and till now i have transferred Rs 10 lac in loan account. Now i want to transfer the money from loan account to saving account and when i deeply checked it is showing as MC-SBI Home Loan. So plz tell me is there any possibility to withdraw this money from bank? or Can i convert it to max gain and if yes so after conversion to max gain, can i transfer this deposited money back to my saving account.

    Please help
    Lalit kumar

    • Suma Ganesh
      Suma Ganesh
      May 23 2018 at 11:05 am

      Hi Lalit,
      Thank you for writing in to us.
      If you have been parking funds in the Max Gain account, you can withdraw at any time.
      If you have instead repaid Rs.10 Lakhs of your loan, then you can not reverse the transaction.
      You can switch your home loan any time within SBI or to a home loan product from another bank.
      Please contact us to help you with this.

  7. sourabh garbhe
    Apr 10 2018 at 5:01 pm

    Hi Tarini,

    I have taken SBI MaxGain Home Loan of Rs. 30 Lacs for the tenure of 13 years. So EMI is Rs. 33,383 /-
    Loan disbursed on 24th August 2016
    First Interest debited on 31st Aug 2016 is 6,181 /-
    Balance shows – 30,06,181 /-
    1st EMI on 15th Sept. 33,383 /-
    Interest debited on 30th Sept 23,049 /-
    Balance shows – 29,95,847

    My question is why interest is added in Balance ?

    • Suma Ganesh
      Suma Ganesh
      May 11 2018 at 12:57 pm

      Hi Sourabh,

      Thank you for writing in to us.
      You haven’t mentioned the interest rate. Running your numbers on an excel shows the interest rate may be around 9.40%.
      Your first EMI of Rs. 33,383 should include Principal Rs. 9883 and interest Rs.23,500. Second EMI should be Rs. 9960 principal and Rs.23,423 interest, so on and so forth.
      the bank may report the same numbers in a different format.
      Please use an amortization schedule easily available on the internet and cross check with bank statement regularly. You will know if your loan repayment is accurate.

  8. Ajay Kardak
    Apr 04 2018 at 5:16 pm


    First of all thanks a lot for this blog. It is indeed helpful! I have below queries on my SBI maxgain account. below are the details as given in my SBI account summary.

    Book balance: +ve 435759
    Available balance: 877424
    limit/drawing power: Rs. 441665

    My queries:

    1. As per my understanding, I have deposited more amount than the actual loan liability (i.e. I can fully foreclose the loan and have some additional amount as surplus now). Then, why drawing power is still showing a big amount like 4 lakh+. If drawing power is current outstanding, then this shoud be zero.

    2. Why book balance is shown as positive. As per my understanding, it is shown as a negative amount.

    3. Is there anything I am missing here. If I ask SBI to foreclose the loan, how much money I should receive as surplus? ( I believe I should get it as I have parked for more money than required).

    Thanks & regards,

    • Suma Ganesh
      Suma Ganesh
      May 23 2018 at 12:41 pm

      Hi Ajay,
      Thank you for writing in to us.
      Here are responses to your questions:
      Your outstanding loan will continue to show a value until you prepay it fully.
      When you park an amount in the MaxGain account, you only reduce your interest cost.
      If the amount is more than your loan outstanding, then you don’t owe an EMI in that month. but since ECS is automatically triggered, EMI will be deducted and later credited back to you through the OD account.

      When you want to close the loan, you will transfer only the outstanding amount. The balance surplus is available for you to withdraw.

  9. Shekhar
    Feb 21 2018 at 10:33 am

    I have taken a SBI Maxgain loan of 80L for new flat under construction. I will have 50L of retirement fund with me which can be parked in Max Gain loan account post registration and which can be utilized in exigency later on.
    Is there a benefit of parking the retirement fund in Maxgain Loan Account in terms of saving on Tax on interest if parked in FD?

    Best Regards,

    • Suma Ganesh
      Suma Ganesh
      May 23 2018 at 1:48 pm

      hi Shekhar
      Thank you for writing in to us
      If you park this amount in a fixed deposit as a senior citizen you will earn interest at the rate of 8% or Rs.4 Lakhs per year.
      Instead if you keep the money in MaxGain account, you will be saving at the rate of interest. Even if we assume interest is 8.50% you will be saving Rs.4,25,000 every year. Max Gain makes more sense.
      However, please note, you will have to compare the scenario from time to time when the amount or interest rates change.

  10. srini
    Nov 28 2017 at 10:52 am

    Hi Tarani,

    i have taken home loan under Max gain policy, i have deposited nearly 4 lacks under surplus amount, what is the process to move this amount under principal amount? do we need to just drop am email to branch manager or is there any standard format to intimate to bank?

  11. Kannan P
    Nov 02 2017 at 5:25 pm

    Hi, I have taken the loan @ 10.1% Interest rate, current IR is 8.75%, how to find-out the repayment schedule.

    • Suma Ganesh
      Suma Ganesh
      Nov 09 2017 at 1:49 pm

      Hi Kannan,
      Thank you for writing in to us.
      A Maxgain amortization schedule is available here
      This will give you a good idea about repayment.
      However, when interest rate changes, it is best to get a statement from the bank to get the exact repayment schedule so far.

  12. Rayu
    Oct 15 2017 at 7:07 pm

    Hi Tarini,

    Your blog has cleared a lot of questions of mine on SBI max gain, like i was always keen to know whats my principal amount balance. I still have some questions.
    I have a under-construction property so can i do a pre-payment by parking some amount, so will this reduce the principal(Drawing Power) or only the interest by reducing the book-balance? Basically i want to reduce my EMI by reducing the principal .

    If i have some extra cash which i have collected for Pre-payments of the loan does it makes sense to put it in MaxGain rather than open an FD with SBI? just considering the savings aspect of it

    • Suma Ganesh
      Suma Ganesh
      Oct 24 2017 at 9:54 am

      Hi Rayu,
      Thank you for writing to us.
      1) When you park your funds in SBI maxgain account, the interest payable for those months is effectively reduced. So while the EMI remains same, you end up repaying little more of your principal. However, if you would like to reduce your EMI, you would need to repay part of your loan. You will not be able to withdraw this amount anymore.

      2) If you have some extra cash, you would need to compare the interest rates on your home loan account and FD. Ultimately, money saved is money made.

  13. Ranjith
    Sep 30 2017 at 3:47 pm


    I am paying an EMI of Rs.32515 from May 2015. The loan amount is 30 lacs which is fully disbursed. I have few queries. Appreciate if you can help me out.
    1. In 2016 interest certificate I noticed the total repayment is given as Rs.358913 (Principal Rs.100269 + Interest Rs.258644). However my actual repayment of EMI is Rs.390180 (32515*12). Need to understand where is the difference Rs. 31267 (390180-358913) accounted.
    2. Till now the interest debited from HL account is not more than Rs.20500 (each month). It varies every month but this is the max is 20500. Assuming that atleast Rs.12000 out of my EMI is principal component, then from May 2015 to Sep 2017 it should be Rs.348000 (12000*29 months). But the drawing power is still Rs.27,96,337. I guess DP is the current outstanding principal. So in that case, my expectation is it should be 3000000 – 348000 = 2652000. My query is why the principal portion of EMI is not getting adjusted to principal outstanding. Other details are given below. Kindly help in clarifying.
    Book Balance: -2389979.16
    Available balance: 406357.84
    Limit: 2796337
    DP: 2796337
    Let me know if you require any further details. Thanks in advance


    • Suma Ganesh
      Suma Ganesh
      Oct 27 2017 at 8:15 am

      Hi Ranjith,
      Thank you for writing in to us.
      1. As a start, please download the SBI Maxgain amortization schedule provided above. Please key in data in the shaded cells for past years. Compare the result with your loan account statement for the entire period of loan. If you still see disparity, please visit your bank and ask for clarification. A few factors that may effect the difference are time period of statement generation, change in interest rate etc.
      2. Drawing power is equal to the current outstanding principal. Interest component of EMI depends on the interest rate applicable every month. If there has been a change in interest rate or if you have parked some funds in your Max gain account, interest and principal paid out would differ.
      Again, it would be best to visit your bank and ask for a statement since the beginning. Compare it to an excel sheet projection and get clarification for all discrepancies and doubts.

  14. Nisha Jassal
    Sep 30 2017 at 10:26 am


    We have a Maxgain account since 2014 before which we had a regular loan account. The bank is unable to give us a statement of total principal paid saying they can give us a statement only for a year. The outstanding low amount which shows in the margin account doesn’t seem right as per our records.
    How best can we get a statement showing total principal paid and how much has gone towards interest since the beginning?

    • Suma Ganesh
      Suma Ganesh
      Oct 27 2017 at 8:48 am

      Hi Nisha,
      Thank you for writing in to us.
      The bank has to give you a statement for the entire period of your loan account.
      Please submit your request in a letter addressed to the manager/AGM at your bank branch.
      You must compare the statement to an excel sheet projection of repayment. You could use the SBI Max Amortization schedule given above.
      Small differences could occur because of constant change in interest rate. If you find large discrepancies,please insist and get clarifications from your branch. Bank staff does not manually calculate your EMIs or interest, they strictly follow the system. However, if you visit them personally, they will be able to clarify all differences broadly.

  15. Shwetha
    Sep 26 2017 at 11:07 pm

    Thanks for helping us in understanding about SBI Max Gain Home Loan.
    Please can you share the Amortization Schedule with Prepayments.
    If any prepayment has been made will it reduce the Principal amount?

    • Suma Ganesh
      Suma Ganesh
      Oct 30 2017 at 10:07 am

      Hi Shwetha,
      Thank you for writing in to us
      You will find the amortization schedule here SBI Maxgain Home loan: Review
      Please refer to sheet 2.

  16. Ravi
    Sep 21 2017 at 9:20 pm

    Hi Tarini,

    First of all, I want to say this is a AWESOME site for SBI Maxgain queries and clarifications. Thanks for helping every one here.

    I have question regarding earning interest from surplus pared in OD account.

    I have Max Gain account since 10 months and keeping parking surplus amount every month but it only helped me only saving interested on total outstanding principle amount and I understand that is the primary purpose of the OD account.

    but I would like to have more details about earning interest from surplus.

    1. I have around 2 5l.- 3l in OD account. Do I earn interest out of it apart from the reducing the interest of loan amount?
    2. is there any (parking amount) surplus amount minimum limit and duration to keep ( I meant to say that keeping for 3 months etc) to earn the interest?
    3. If interest is earned, would that be added to available balance or credited to saving account?

    Kindly help with your insightful expertise.

    • Suma Ganesh
      Suma Ganesh
      Oct 30 2017 at 10:14 am

      Hi Ravi,
      Thank you for your appreciation.
      Here is the response:
      1. You do not earn any interest separately on OD account.
      2. There is no restriction on how long you keep surplus in the OD account.
      3. This is clarifid above

  17. Yogesh Batra
    Sep 11 2017 at 1:45 pm

    I am golding SBI maxgain loan account and as per the below details looks like it is going to be finish in another 2-3 months as my monthly emi is around 21000. So, my question is can i take top up load on this account to purchase plot or do i need to apply for separate loan for buying a land?

    Account Number 000000XXXXXXXXXXXXX
    Description SBI H L MAXGAIN OD (OCT13)
    Book Balance -53,299.85
    Available Balance 0.00
    Limit 33,723.00
    Uncleared balance 0.00
    Drawing Power 33,723.00
    Currency INR
    Rate of Interest (% p.a.) 9.3%
    Lien Amount 0.00

    Yogesh Batra

    • Suma Ganesh
      Suma Ganesh
      Nov 02 2017 at 10:11 am

      Hi Yogesh,
      Thank you for writing in to us.
      You can take a top up on your existing loan. But this will be decided by your bank after checking your eligibility all over again. Top up also comes with a slightly higher interest rate. The benefit is that you can use the amount for anything you want.
      You should ideally compare the top up with a new loan and decide. As a start you could use the home loan calculators on our website.
      Our advisors could guide you through a top up loan or a new loan if you need. All you have to do is register on our website for this.

  18. Ninad
    Jul 04 2017 at 8:00 pm

    I am planning to buy new car & have some funds parked in Maxgain account. I am thinking whether it is better to take car loan or to fully utilize the surplus parked fund in Maxgain account? Logically using the maxgain account fund seems more useful. But, want to take expert opinion. But, if I withdraw all maxgain surplus finds, my interest component will rise substantially. Please advise what would be better decision?

    • Sumita Nath
      Sumita Nath
      Jul 05 2017 at 1:03 pm

      Hi Ninad,

      Thank you for writing to us.

      I would suggest to use your surplus funds from Max gain account. It’s true that your EMI will go up with regards to the Outstanding amount once you withdraw the surplus, but if you go for car loan you will end up paying another EMI. In this case your cash outflow will be more comparatively.

      Hope this will help you to take your decision.

  19. Anshul Gupta
    Jun 29 2017 at 6:44 pm


    I have a maxgain home loan account and have following queries:
    1. I have paid some surplus amount of 1 Lack in the OD A/c. Will This one Lack be reflected as Principal component in my Interest certificate?
    2. If not how can i direct the back that i do not want to withdraw this money and want to repay it towards loan.
    3. Will i earn interest on this 1 Lack surplus? What will be the interest rate. Is it annual or Monthly?
    4. If i have paid my outstanding amount (Book balance) completely and in the event that outstanding amount = 0, while my principal is not 0, Can i still close my loan? Will it be considered as loan re paid?

    Kindly Advise.

    • Sumita Nath
      Sumita Nath
      Jun 30 2017 at 1:17 pm

      Hi Anshul,

      Thank you for writing to us. Please find the below answers to your queries:

      1. No, the surplus amount will not be reflected as Principal component in your Interest Certificate.
      2. You will have to inform the bank in written to adjust your surplus amount towards your Outstanding loan amount.
      3. No, you won’t earn any interest on the surplus amount. Your surplus amount will help you to save your interest outgo every month.
      4. No, your OD account should be zero. Then it will be considered as loan re-paid. Book Balance is the difference of drawing power and available balance.

  20. Sanjay
    Feb 20 2017 at 3:20 pm

    I’ve recently moved to SBI Maxgain. I’ve an existing Saving account in SBI.
    Q1 For paying my home loan EMI, do I need to open an nother account (OD) or the existing SB account can be treated as OD account
    Q2 Is there a need to have 2 accounts- OD account and SB account

    Will appreciate your quick response.

    • Sumita Nath
      Sumita Nath
      Feb 21 2017 at 4:43 pm

      Hi Sanjay,

      Thank you for writing to us.

      Please find below the answers to your queries:
      1. SB a/c is needed for paying EMI and OD account would be a separate a/c required for parking the suplus amount. Your existing SB a/c could be used for paying EMI’s.
      2. Yes there is a need for 2 separate accounts. For O/D account, you will have to sign a form given by the bank .

  21. Sanket Gupta
    Jan 02 2017 at 2:57 pm

    Hello Tarini,
    I wanted to know if my loan is say 10L and I put more than 10L amount in OD account, then what will happen. Will I start getting interest credits?

    • Sumita Nath
      Sumita Nath
      Jan 02 2017 at 4:18 pm

      Hi Sanket,

      Thank you for writing to us.
      Parking more than your outstanding amount is not possible. SBI will reject your application for the same.

  22. Nilkanth M Sonar
    Jan 02 2017 at 2:55 pm

    Hi Sumita,

    Thank you for reply.
    how do i check if i am on the base rate or mclr rate currently?
    from where i can get this information ? is that reflecting online on net banking ?

    Secondly just wanted to update you that in Dec month the roi was 9.35% but now its reflecting as 9.3%

    Pls help me…

    Nilkanth M Sonar

    • Sumita Nath
      Sumita Nath
      Jan 02 2017 at 4:15 pm

      Hi Nilkanth,

      Base rate was in existence until April 2016 and thereafter the rate methodology was changed to MCLR. Base rate will apply if you have taken loan before April 2016. As per your current interest rate it seems you are on base rate.

  23. Sagar Madhav Pandharkar
    Jan 02 2017 at 1:46 pm

    I have taken the loan of 15,00,000 as a “SBI H L MAXGAIN OD (OCT13)”
    Till 31 December 2016 it’s showing Rate of Interest (% p.a.) as 9.60
    When SBI cut interest rate as .90
    Now its showing as 9.55 it should be 8.70 ?

    • Sumita Nath
      Sumita Nath
      Jan 02 2017 at 4:48 pm

      Hi Sagar,

      Thank you for writing to us.

      That is because your loan is on Base rate and 8.70% is MCLR rate. To avail this interest rate you can switch to MCLR rate.

  24. Vishal M Poonater
    Dec 04 2016 at 1:28 pm

    Hi, great to see you reply to each and every query and is a great help, could you email me the amortization sheet.

    • Sumita Nath
      Sumita Nath
      Dec 06 2016 at 5:42 pm

      Hi Vishal,

      Could you please share your home loan details so that we could help you with the amortisation table.

  25. Nilkanth
    Dec 02 2016 at 1:27 pm

    Hi Tarini,

    First of all thanks a lot to you and your team members for supporting us.

    I have taken a Maxgain Home loan from SBI on Jul 2015 @ 9.50%. Now as I am checking online current rate is reflecting as 9.35%.
    So my question here is this rate cut of Nov 16 is not applicable to my case ? I mean i cant get a benifit of this rate cut ?
    If I am not wrong the current rate is 9.15%

    If i am also eligible to get benefit of that rate cut then what procedure i should do to get it.

    Nilkanth M Sonar

    • Sumita Nath
      Sumita Nath
      Dec 07 2016 at 5:31 pm

      Hi Nilkanth,

      Thankyou for writing to us.
      I hope you know that in April 1, 2016, RBI has introduced the Marginal Cost of Funds based Lending Rate (MCLR) methodology as an alternative to the earlier base rate system. So I would like to know if you are on the base rate or mclr rate currently? The current rate(9.15) is on MCLR basis.

  26. Vaishali Kelkar
    Nov 28 2016 at 11:30 am

    Applied for Housing loan of Rs.14,00,000/- to SBI. I want maxgain facility with loan. Is it possible?

    • Sumita Nath
      Sumita Nath
      Nov 28 2016 at 2:54 pm

      Hi Vaishali,

      You won’t be able to apply for maxgain as your outstanding amount is less than Rs.2000000.

  27. Prakash
    Sep 23 2016 at 10:36 am

    Hi it’s great to see you are really responding to so many queries and helping so many people with the doubts. My doubt is this . I have got a MaxGain Account for under construction property and paying full EMIs starting may 2016 and currently residing in rented accomodation . So can I get any tax rebate (Section 80 EE ) for the Interest that I am paying ?

    • Sumita Nath
      Sumita Nath
      Sep 27 2016 at 2:48 pm

      Hi Prakash

      Deduction of Section 80EE would be applicable only in the following cases:-

      i.This deduction would be allowed only if the value of the property purchased is less than Rs. 50 Lakhs and the value of loan taken is less than Rs. 35 Lakhs.
      ii.The loan should be sanctioned between 1st April 2016 and 31st March 2017.
      iii.The benefit of this deduction would be available till the time the repayment of the loan continues.

  28. Ksn
    Sep 21 2016 at 6:50 pm

    Hi Tarini,

    I have taken SBI OD Loan for 34 lacks and had parked 25 lacks surplus amount in it, recently went to the bank and gave them a letter to deduct this 25 lacks as pre-payment of the loan and asked them to re-adjust my EMI. Now the status is as below.

    Account Number xxxxxxxxxx
    Name xxxxxxxxx
    Book Balance -9,00,000.00
    Available Balance 16,00,000.00
    Limit 25,00,000.00
    Uncleared balance 0.00
    Drawing Power 25,00,000.00
    Currency INR
    Rate of Interest (% p.a.) 9.55%
    Lien Amount 0.00

    Instead of 25 lacks as prepayment, i see they have only considered 9 lacks (i.e. 34lack-9lacks = 25lacks as Drawing Power).
    Can you please let me know if i want to prepay the remaining available amount of 16 lacks, do i need to give the bank another letter?


    • Sumita Nath
      Sumita Nath
      Sep 22 2016 at 1:09 pm

      Hi skarra,

      Yes you will have to get in touch with your bank for the prepayment of your remaining amount.

  29. Ashu
    Sep 21 2016 at 11:48 am

    Hi Tarini
    Today I switched my SBI home loan from Term to MAX Gain with OD, I deposited 27,000 to my OD account which brought down the book balance to -21,72,451.00 ( less by 27000 compared to previous outstanding loan amount), how every I did not understand why the available balance is reflected as 24,193.00.
    Appreciate your help in getting this clarified.


    • Sumita Nath
      Sumita Nath
      Sep 22 2016 at 1:13 pm

      Hi Ashu,

      I would suggest you to get in touch with your bank to know the required details.

  30. Senthil
    Sep 17 2016 at 9:47 pm

    Some unwanted debit issues I have asked the branch to cancel my standing instruction for maxgain EMI, Now where they will deduct my EMI or where I have to pay my EMI

    • Sumita Nath
      Sumita Nath
      Sep 27 2016 at 3:05 pm

      Hi Senthil,

      Can you please elaborate on this, as i am not able to understand your query.

  31. Panchal Nilesh
    Sep 17 2016 at 2:44 pm

    Hey All,
    This is Nilesh here..
    I have SBI max gain and that account is also activated but I am not able to transfer money from my other deposit account.It is failing with error description ” Bank Identifier incorrect”. Is it need to something for Max gain OD account. Or is it something that I can only transfer money from my specific registered deposit account for Max gain OD account?

    • Sumita Nath
      Sumita Nath
      Sep 27 2016 at 3:09 pm

      Hi Nilesh,

      You can only transfer money from your registered deposit account for Max gain OD account.

  32. Kiran
    Sep 16 2016 at 1:56 pm

    Thanks for FAQs.
    I had few queries regarding the tax saving.
    1. The EMI which will be deducted monthly will be having both principal and interest part. I will be eligible for 80c tax exception for the principal deducted and Section 24 exception for the interest. right ?
    2. Instead of parking some surplus amount in OD, is it possible to do a repayment for some amount. For example, lets say, I need to do a repayment of 1,00,000 rupees instead of transferring it to OD. Is it possible ?( The intention of the question :- Since there is no 80c exemption for the amount parked in OD, is it possible to avail that exemption if I do a repayment ? )

    Thanks in advance.

    • Sumita Nath
      Sumita Nath
      Sep 27 2016 at 3:31 pm

      Hi Kiran,

      i. Yes you will be eligible for 80c tax exception for the principal deducted and Section 24 exception for the interest.
      ii. Yes you can avail the exemption by doing a repayment for some amount.

  33. Aztek
    Sep 16 2016 at 10:55 am

    Dear Tarini,
    Appreciate your time and valuable advise you give to all the people here.
    SBI maxgain Homeloan amount 56lacs, EMI 55000 for 20yrs with current ROI 9.7%. Till date I have parked around 8lacs of surplus amount in my home-loan account in bits and pieces and not lump-sum. With my increased salary, I can park more amount than my EMI in my SBI Maxgain Home loan account. Current EMI 55000 and I can add 30000 more to it. Current outstanding is 53lacs excluding the 8lacs surplus amount.
    My Questions:
    1. Shall I withdraw the 8lacs surplus amount and deposit it back as a lump-sum, if so what benefit will it give me.
    2. Can i adjust it towards principal and reduce tenure? If so what benefit will it give me?
    3. Shall I increase my EMI to reduce the tenure? if so what benefit will it give me?
    4. Can I deposit lump-sum and increase EMI both at the same time and decrease my tenure? if so what benefit will it give me?
    4. Or I shall continue parking the surplus 30000 in maxgain account without changing the EMI?
    It would be very helpful to hear your valuable advice on my queries.
    Thanks in Advance

    • Sumita Nath
      Sumita Nath
      Sep 27 2016 at 4:03 pm

      Hi Nishant,

      Please find the answers to all your queries below:

      1. Yes you can. By doing so you will get benefit on the interest rate.
      2. You can close your loan faster by adjusting it towards principal and reducing tenure.
      3. Yes you can increase your EMI to reduce the tenure and it will help you closing your loan faster.
      4. You can do both of them together and the benefit will be the same as mentioned above.
      5. Parking the surplus 30000 in maxgain account will give you the same benefit as stated in point no.1.

  34. Jagan
    Sep 15 2016 at 5:15 pm

    Hi Sumita,

    Say, If I get a loan of 15 lakhs but not taking out single penny from OD account, should I need to pay the EMI…?

    Thanks in Advance.

    • Sumita Nath
      Sumita Nath
      Sep 21 2016 at 12:36 pm

      Hi Jagan,

      Once your loan is disbursed you are bound to pay the EMI.

  35. Aditya
    Sep 14 2016 at 1:29 pm

    Hi Tarini,

    I have opted for SBI Max Gain. My question –

    1. Whether i am eligible for Section 24: Income Tax Benefit on Interest on Home Loan ?
    The maximum tax deduction allowed under Section 24 of a self-occupied property is subject to a maximum limit of Rs. 2 Lakhs .
    Currently the property is in Under Construction stage.
    2. Tax certificate provided by SBI comprises of what all details ?

    Kindly suggest what all options are available to me for getting the Tax exemptions ? I have recently bought the first home, loan amount 24 Lakhs, property price-34 lakhs.

    • Sumita Nath
      Sumita Nath
      Sep 28 2016 at 11:44 am

      Hi Aditya,

      Have resolved your queries below:
      1. Yes you are eligible for Section 24 and you should also get exemption from section 80EE as you have applied for the loan first time.
      2. Sorry, but we are not aware about the details comprised in the tax certificate provided by SBI.

  36. Jagan
    Sep 13 2016 at 7:18 pm

    Hi Tarini,

    Fantastic udnerstanding on the MaxGain. Your reply answered lot of my questions.

    I have a very specific question.

    Say, I have taken a loan of 15 Lakhs. EMI (15K) starts from 01-Oct-2016 for 15 years.
    There will be an amortization table corresponding to it.

    Assume, am not utilizing the 15 lakhs till end of 14 years (either not paying EMI or pay 15K on the 1st of month and
    take out 15K next day to maintain 15 lakhs).

    withdraw 2 lakhs
    on 01-Oct-2030 (coz as per Amortization table, I should have paid around 13 lakhs of Principal).

    Now, if I pay the EMI for rest 12 months, will that be enough..or am I too bad at Maths….?

    • Sumita Nath
      Sumita Nath
      Sep 15 2016 at 12:14 pm

      Hi Jagan,

      I am unable to understand your query.

  37. YRNaik
    Sep 07 2016 at 5:38 pm

    Just a correction to the answer to question no 10 .

    The statement in the answer “This means that as long as both remain equal, you will not have to pay any EMI to the bank.” is not correct.
    The correct answer would be “you will not have to pay any interest but payment of principal amount will continue”

    • Sumita Nath
      Sumita Nath
      Sep 28 2016 at 12:57 pm


      Thanks for your input.

  38. Ravi Kumar
    Aug 30 2016 at 3:03 pm


    I have taken a home loan of Rs 14 Lakhs from State Bank of India last week. I requested for a Maxgain OD account. But, they opened a normal Home Loan account. When asked for the reason, the bank person told that Maxgain account is opened for Loans of Rs 20 Lakhs or higher. Is it true? If not, is there any way that I can get the loan account converted to Maxgain account?

    • Sumita Nath
      Sumita Nath
      Sep 28 2016 at 12:52 pm

      Hi Ravi,

      Yes you cannot opt or get the loan converted for Maxgain aacount, since your loan amount is below Rs.20 lakhs.

  39. Ashwini Kumar
    Aug 18 2016 at 11:25 am

    Do I earn any interest on the surplus money parked in maxgain OD A/C?

    • Sumita Nath
      Sumita Nath
      Sep 28 2016 at 3:47 pm

      Hi Ashwini,

      Yes you will grt interest on the surplus money parked in maxgain OD A/C.

  40. pravin pillai
    Aug 12 2016 at 9:37 pm

    Hi….I want to repay my home loan…should i pay amount to max gain or max suraksha account?

    • Sumita Nath
      Sumita Nath
      Sep 29 2016 at 4:45 pm

      Hi Pravin,

      Could you please re frame your query.

  41. Ankush
    Jul 31 2016 at 5:48 am

    Hi Tarini,

    I gone through all the valuable questions that the customer asked here and satisfactory answers given by you.
    It solved all my doubts regarding SBI MaxGain.
    Thanks a lot for all clarifications..!

    • Sumita Nath
      Sumita Nath
      Sep 29 2016 at 4:21 pm

      Thanks for your appreciation!!!

    Jul 29 2016 at 1:25 pm

    Hi Tarini, How are you !!
    i do have small query, There is a change in SBI Home loan Interest ie. 9.35% now. I opted loan in oct 2015 with 9.55% Interest rate with Max Gain and 7 years of Loan Tenure. Please suggest that whether i’m eligible for the New Interest Rate i.e, 9.35% and if yes is it advisable to opt it.

      Aug 01 2016 at 12:02 pm

      Awaiting for the revert, Hope things are all right.

    • Sumita Nath
      Sumita Nath
      Sep 29 2016 at 3:58 pm

      Hey i have already replied on your previous comment. Sorry for the late reply.

    • Sumita Nath
      Sumita Nath
      Sep 29 2016 at 3:45 pm

      Hi Prashant,

      You are on the base rate which is 9.55% and 9.35% is the mclr rate which was introduced in Jul 1, 2016 . If you wish to switch from base rate to mcrl rate, kindly get in touch with your bank. Before that go through this article to decide on that.

  43. Ranganath
    Jul 26 2016 at 7:47 am

    Hi Tarini,
    Firstly, thank you for all your patience in answering these questions.
    Query: Presently, I have a home loan with SBI which was taken 4 years back under maxgain facility for an apartment which is presently being repaid. I am presently allowed around 9.4% interest. I wanted an another loan for my second apartment. Can i be avail maxgain facility with the same rate of interest (9.4%)? Please let me know.

    • Sumita Nath
      Sumita Nath
      Oct 03 2016 at 3:47 pm

      Hi Rangnath,

      Sorry for the delayed response. Thank you for your appreciation.
      You can definitely avail maxgain facility with the same rate of interest for your second home loan.

  44. Sujay dixith
    Jun 20 2016 at 10:01 am


    Iam planning to take a housing loan of 22 lakhs under Maxgain and i have equivalent funds available with me which i may not require for another 10 years. If i opt to park the whole amount for next 10 years and avail a repayment period of 10 years, will be left with 22 lakhs at the end of my loan tenure with my housing loan stands closed ? Does that mean i will be paying out all the EMI for the entire loan only from the interest i gained every month with my parked amount ?

    Thanks in Advance for your clarification.


    • Tarini
      Jun 21 2016 at 3:11 pm

      Hey Suajy

      Here’s are a few questions I’d like to you to think about;
      1. If you already have 22 lakhs available with you to purchase the property then why take the home loan and pay interest on it? You can simply use that to invest in the property.
      2. However, assuming that you’d like to invest the 22 lakhs elsewhere and are therefore taking the home loan, how will it benefit you if you simply park that amount in your OD account?

      A few bits of information for you;
      1. SBI doesn’t give any interest on the amount parked in the OD account. So even if you parked the money in the OD account, you have nothing to gain.
      2. I suggest that you rather invest that money elsewhere where you will get decent returns on your investment. One option could be your property. Other options are FDs, RDs, liquid funds mutual funds etc.

      I hope this helps you make the right decision.

  45. Sarath Gandham
    Jun 20 2016 at 1:37 am

    Hi Tarini,

    Nice to read this blog and seeing your sound advices. I took a SBI Max gain account in 2014 with 50L loan approval for an under construction flat. I am yet to get the possession which is due this dec, 2016. Till now around 35L amount has been disbursed to the builder and the pending 15L will be enough to make 100% payment for the flat. Now i am in need of another 12L for interior work, for which I need your advice to see which option is feasible –

    Want to apply an advance loan from my Provident Fund account to partly repay the home loan ( have sufficient fund for 12L ) and i already completed 10 years of service contributing to PF.

    Option 1 : Can I withdraw this money post 100% loan disbursal to builder and possession since it is an OD (Maxgain account ) ?
    If yes Post 100% loan amount disbursal how much more days will it take for me to be able to withdraw any surplus parked money from my max gain account ?

    Option 2: If withdrawal doesn’t work post possession as well for the PF transferred money. Then should i go for a Top Up loan from SBI again for 12L. How much long process will it take and will the interest rates be higher than my home loan interest rate ?

    Assumption taken PF advance will be paid directly to SBI loan account only ( and not to my personal account ) since home loan account is active. If there any other options as well please let me know.

    • Tarini
      Jun 22 2016 at 2:57 pm

      Hey Sarath

      It’s heartwarming to know that you have found our article helpful. Here’s a clarification to all your queries;
      1. About Maxgain OD account: This doesn’t function like a regular bank OD account, this means that you cannot withdraw an amount from it, which you haven’t put in there before. You can only withdraw the surplus amount that you have parked there (this can immediate funds available with you, transfers from your savings account etc.)

      2. You will be able to withdraw any (self) parked surplus amount from the OD account once you submit a copy of the Completion Certificate in your bank. This will be treated as a proof of completion of property construction by the bank, after which they will activate debit feature of your OD account.

      3. Top up loan: you can explore the option of taking a top up loan. It will be treated a separate loan and will not be clubbed with your home loan. It’ll be easy for you to get a top up loan for home improvement, for which you will need to submit a broad outline of your budget/ plan for renovating.
      The interest rate will be slightly higher than the home loan.
      Taking a top up is the next best option for you, if the loan against PF doesn’t work out 🙂

  46. Jayaraj
    Jun 17 2016 at 2:11 pm

    Hi Tarini
    Nice article. I have a question. I am planning to purchase an under construction apartment. So I wont be able to withdraw the money I parked in the OD account. Example: If my loan is 25L and I park 5L in account, what will be my interest? I will be paying only interest in the pre-emi period right? So I will be paying interest on 25L and the interest for 5L will be credited to my OD account? or I will be paying only interest for 20L? Because, I see that the interest is calculated on Book balance and my book balance will be 20L right?
    Also, If I take moratorium for 18 months, and park some amount in the account, when they take the bulk interest, will they consider the amount I parked? Example: 25L loan and 5L parked. At the end of moratorium, will I be paying interest for 20L for 18 months or 25L for 18 months?

    • Tarini
      Jun 21 2016 at 3:04 pm

      Hey Jayaraj

      Thank you for writing in, here’s a clarification to your query;
      1. If you go for Pre-EMI, then you will be paying only interest on the disbursed amount, not the total home loan amount. So if the disbursed amount for first 3 months is 6 lakhs and you have parked 5 lakhs in your OD account, then you will need to pay interest only on 1 lakh (outstanding amount – OD a/c balance = amount on which interest payable is calculated).

      2. Yes, interest is always calculated on the book balance. Just to quickly clarify all the terms related to Maxgain home loan;
      – Drawing power: This reflects the home loan amount that has been disbursed. It will reduce with every EMI payment you make. It should reduce in the same proportion as the principal component of your EMI. This can be verified against the amortization schedule provided by the bank (it shows a break up of each EMI you pay, into principal and interest components)
      – Limit: This indicated the maximum amount you are eligible to borrow.
      – Available balance: This reflects the balance of money parked/ debited by you in the OD (over draft account).
      – Book Balance = drawing power – available balance. The actual interest payable by you, is calculated on a daily basis based on this amount.

      3. Moving on to moratorium period; at the end of this period, interest will be calculated on the book balance only, not the drawing power.

      I hope this information is helpful 🙂

  47. Mohit
    Jun 15 2016 at 11:10 pm

    Hi Tarini,

    I have a max gain account with SBI.

    I have deposited 1,50,092 (in multiple transactions) and it was showing in available balance on (10-JUN-2016). But when I checked on 14-JUN-2016 it was showing only 1,47,114. I have not withdrawn any amount form this account and also we cannot see the statement for available balance.

    Could you please suggest me on this.

    • Tarini
      Jun 16 2016 at 2:30 pm

      Hey Mohit

      Please get in touch with your bank immediately and bring it to their notice, it could be a simple technical error in their system (or worse maybe). They will be able to guide you best in this matter. Do let us know how it goes.

    Jun 14 2016 at 7:12 pm

    Hello Tarini,

    Few doubts and questions…I logged into my SBI Maxgain account today and in the account summary there is a description as Available Balance : XXXXXXX ; My question :

    1) Is that amount in “available balance” withdraw-able??……if so how?

    I tried transferring the amount to another SBI savings account but in the payments/transfer section, that max gain HL account no. doesn’t show up (from which I want to transfer my funds TO the savings acc.)….the ac no doesn’t reflect at all….so basically not able to transfer from it….why is it so?

    2) How do I get to activate the transfer of funds from Max gain account to SBI savings account online…so that the maxgain account no appears in the “payment/transfer” page if i want to transfer the available balance to any of the other sbi savings ac.??

    3) Again, as I dont have a passbook for my Maxgain acc. (and In case I am not able to transfer it online as stared above)… is it possible to walk in to an SBI branch and withdraw the amount in the available balance though a withdrawal slip??

    Please Help!

    • Tarini
      Jun 22 2016 at 3:25 pm

      Hey Ranobir

      Here’s a clarification to your queries;
      1. Yes, available balance is withdraw-able. Available balance reflects the balance of your OD account. Any funds parked by you here, will be reflected by it.
      2. There seems to be a technical error on the bank’s part as all borrowers have the facility of making online transfers to and from their OD account. Unless, your home loan has been taken for an under construction property. If yes, then you will need to submit a copy of the Completion Certificate as a proof of completion, after which the bank will activate the online transfer.
      3. Yes, if nothing works, then you can visit your branch and manually withdraw the money from your bank account.
      I hope this is helpful 🙂