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. Anil
    Jun 14 2016 at 10:33 am

    Hi, How to check weather my home loan account has been converted/implemented as Max Gain account? Please help.

    • Tarini
      Jun 16 2016 at 1:03 pm

      Hey Anil
      You can login into your account online and check the same. If it has been converted to a maxgain account then it should have the following format;
      Account Number 000000XXXXXXXXX00
      Description SBI H L MAXGAIN OD (date of taking home loan)
      Name Mr. ANIL
      Book Balance -amount
      Available Balance amount
      Limit amount
      Uncleared balance 0.00
      Drawing Power amount
      Currency INR
      Rate of Interest (% p.a.)

      I hope this is helpful 🙂

  2. Ajit
    Jun 13 2016 at 10:47 pm

    Hello Tarini,

    I have obtained SBI Max gain home loan of 33 lakhs, having full EMI option.
    Property is under consruction, Out of 33, 27 lakhs disbursement is done, 6 lakh is still pending.
    I have been paying EMI last 10 months, As EMI = Intrest + principal amount.It is observed that Intrest is deducted every month but drawing power is not reduced by principal amount.
    drawing power is remains constant. principal amount is added in avilable balance. does drawing power should be decraesed by principal amount every month ?

    • Tarini
      Jun 16 2016 at 1:09 pm

      Hey Ajit

      As per my understanding, as each EMI is paid, the drawing power remains the same and the book balance keeps reducing. While I am not sure why is the principal amount getting deposited in your OD account, instead of getting absorbed by the bank, in essence it has the same impact as reducing outstanding principal amount. I suggest that you ask your bank for a clarification on this, too 🙂

  3. Praveen Kumar
    Jun 13 2016 at 3:45 pm

    Hi Tarini
    Its nice to see your reply. I have a question. I was taken max gain loan from SBI for plot. As I was told to start construct house with in 2 years and I was not sure to go for construction or not. I have repayed complete loan amount with in 2 years and asked to close the account from home branch(Still not collected my paper from RAPC). Now I am planning for construction, is it possible to reopen the same OD account. If not, what other alternative I have ?

    • Tarini
      Jun 16 2016 at 1:14 pm

      Hey Praveen

      Thank you for writing in! Regarding your query, since the home loan has been closed, you will need to approach the bank for a fresh loan for construction of property. The old loan cannot be re-opened again. You will need to collect your papers from the RACPC and do the entire processing/ paper work again. I hope this answers your query satisfactorily 🙂

  4. Ajit
    Jun 13 2016 at 3:43 pm

    I have a quesiton on the way how the limit / Drawing power has been changing in Max gain A/C.

    I took 33 lakhs loan in SBI, 10 months back and adopted full EMI option.
    Property is under construction, 1 st disbursement of 27 lakhs is done by bank, 6 lakhs is pending.
    For 10 month, EMI has been paid. I see that the interest debited from my a/c on 27 lakhs. However, I realized that the Limit / Drawing power is not reducing accordingly.

    Here is what I assumed as EMI will be adjusted

    Change in Limit / Drawing power = EMI – Interest amount.

    Having a closer look at my a/c, I feel this is not being followed.

    • Tarini
      Jun 16 2016 at 2:25 pm

      Hey Ajit

      The EMIs are supposed to reduce the book balance, while the drawing power remains constant. I suggest that you run the same numbers against your book balance to ensure that this is indeed the case 🙂 Do let me know if I can help with anything else.

  5. Apex Srinivas
    Jun 10 2016 at 8:19 pm

    Hi Tarini,

    Here is my situation:

    Sanctioned for a MAX GAIN HL loan of 99 lacs.
    Disbursed on Jan 2016. My book balance is -80 lacs now.

    I have cash of 25 lacs sitting around in my other Saving Bank Account HDFC. Should I transfer the money to SBI MAX GAIN OD account to reduce the interest ?

    My question get interesting because, Say suppose If I transfer the 25 lacs now (June 2016) to OD account, Will I be able to withdraw 15 lacs from the same OD account to Savings A/c (SBI) in August/September 2016 ?

    Please reply back, Your input is highly appreciated and can save around 20K of interest every month to me.

    • Tarini
      Jun 16 2016 at 2:03 pm

      Hey Apex Srinivas

      Thank you for writing in! Regarding your query;
      1. Yes! You should definitely go ahead and deposit the additional 25L in your OD account, this will help reduce your book balance and in-turn help you save on interest payments every month
      2. Yes, that’s the entire point of having an OD account 😛 You can withdraw the amount from your OD account anytime you like. This is facilitated by the fact that SBI calculates interest rate on a daily basis. So you will be able to benefit from maintaining balance in your OD account until the day you withdraw it.
      I hope this is helpful 🙂

  6. Piyush
    Jun 09 2016 at 7:29 pm

    Is there any provision for the permanent pre payment in the max gain plan, So that I can claim 80C tax benefit for that amount ??

    • Tarini
      Jun 10 2016 at 1:48 pm

      Hey Piyush

      Yes, SBI allows 2-3 prepayments during the entire loan tenure of a maxgain home loan. You will need to make a prepayment that equals a minimum of 20% of your outstanding loan amount. This way you will be able to claim tax deduction 🙂

  7. Archan Pagedar
    Jun 08 2016 at 1:42 pm

    Hi Tarini,

    I have taken SBI MaxGain Home loan on 23-Oct-2015. My interest rate is 9.5% based on Base rate. I want to know when my interest rate will change, as the interest rates are switched to new MCLR. So there is no any revision in Base rate since long time.

    In this regard, should we switch to lower MCLR?


    • Tarini
      Jun 08 2016 at 2:34 pm

      Hey Archan

      We suggest that you wait for a few more months before switching to MCLR. Since the interest rates are on a downward trend, its best to wait for the next base rate revision to see whether or not it will be beneficial to switch to MCLR from base rate. You can read more on MCLR vs. Base rate here 🙂

  8. Bhushan V.
    Jun 06 2016 at 9:23 pm

    Hi Tarini,

    Thank you Sooo much, it cleared all the doubts except small below one. 🙂

    Is Parked amount = available balance (in maxgain account). So money we transfer to maxgain account will it reflect as available balance.

    • Tarini
      Jun 07 2016 at 5:24 pm

      Hey Bhushan

      We are always happy to help! 🙂 regarding your query;
      YES! Parked amount = available balance, so any money transferred to to the Maxgain OD account will be reflected here.

  9. Mithun Joshi
    Jun 05 2016 at 8:03 am

    Hello tarini,
    I have one doubt regarding interest rates. As the interest rates are going down is it applicable to the existing customers of sbi max gain? I took house loan 6months back as joint with my wife. It was 9.5% now it has reduced to 9.4% as per rti and sbi scheme.. Is this facility applicable to me also? Please clarify..

    • Tarini
      Jun 06 2016 at 4:54 pm

      Hi Mithun

      Unfortunately, the reduced interest rates are not be applicable to existing borrowers of SBI. You can avail the reduced interest rate by paying a processing fees of Rs. 1000 and filling out a form at your loan branch. I hope this helps 🙂

    • Mithun Joshi
      Jun 07 2016 at 12:28 pm

      Thank u very much for ur immediate reply. But my loan is having floating interest. Is it is floating the updated rate of interest has to apply right? Or it is fixed only til the end of loan.. In that case even if loan rate increases also it shud not affect right. It shud remain the same only know.

    • Tarini
      Jun 07 2016 at 1:53 pm

      Hey Mithun

      Unfortunately, banks offer the reduced interest rate only to the new borrowers, while the old borrowers continue on a higher rate of interest. However, in the event of an increase in lending rate, the rates are applied to all (existing and new) borrowers of the bank. This is how they are able to keep profits up.
      So even though you are on a floating interest rate, you will need to put in a written request to switch to the current ROI. I hope this information is helpful, do feel free to write in with any further queries 🙂

    • Mithun Joshi
      Jun 07 2016 at 1:49 pm

      Hello ,
      Thank u very much for ur immediate reply. but my doubt stil continues as my loan component is flexible type, and as per my knowledge it shud vary as per market values. or is that means it is fixed rate of interest thought out 20 years. in that case even if rate of interest increases it shud not affect me. Please clarify. and one more thing as the interest is getting lower and lower do i need to go to bank and update as per new interest rates every time??

    • Tarini
      Jun 07 2016 at 1:59 pm

      Hey Mithun

      We’re always happy to help 🙂 Here’s a clarification to your queries;
      1. No, this doesn’t mean that your loan is on a fixed interest rate, this is just a strategy deployed by all banks to increase profits.
      2. Yes, you will need to put in a request to decrease your interest rate every time a rate cut is announced, unless the bank decides to extend the rate cut to all its existing borrower (the way SBI did, the last time rate cuts were announced).

  10. Bhushan V
    Jun 05 2016 at 12:22 am

    Hi There,
    I have SBI Max gain home loan and I would like to know If I’m parking some money on monthly basis or in lump sum to my home loan account, Will my loan tenure come down or EMI go down ?
    Also how can I apply for a ATM card against my My loan account.

    • Tarini
      Jun 06 2016 at 5:09 pm

      Hi Bhushan

      Thank you for getting in touch with us, regarding your query : If you park some money in your account, neither your outstanding amount, nor your EMI will come down, but you will still be saving substantially in terms of interest. Here’s how;
      1. the money parked in your OD account will help reduce the book balance (the amount on which interest is calculated on a daily basis) by the same amount.
      2. This way you will end up paying less interest on your entire home loan.
      3. While the total EMI amount will remain the same, the interest component will be less than what it was supposed to be if you hadn’t parked that money in your OD account. So the difference between how much interest you were supposed to pay and the actual (reduced) interest you will be paying, will get added to the principal amount (for repayment).
      I hope this information is helpful.

      Further, SBI has stopped issuing ATM cards for Maxgain OD account, you can still have them issue you a cheque book though.

  11. Harikrushna Gajjar
    Jun 04 2016 at 5:03 pm

    I want to do partialpayment in Mag gain loan amount rather than parking money so that my loan amount and hence responsibility reduces.(Just like we do in normal home loan) but SBI does not allow me to do so.They says I have two options: park money or 2.Do full payment.Is it true.If not then to whom should I contact to resolve this issue?

    • Tarini
      Jun 04 2016 at 7:08 pm

      Hi Mr. Gujjar

      I believe you are being misinformed. Here is how one of our readers prepaid their maxgain home loan, and was kind enough to share his experience:

      “This is the process I followed for part payment of SBI Max Gain Loan. Sharing with you so that maximum people can get benefit from this.

      Points to Remember
      1. The amount which is going to be deposited must be minimum 20% of the total loan amount.
      2. This thing can be done, only twice in entire loan life cycle. Everytime we do this, bank has lot of exercise to perform like adjusting tenure / EMI

      1. Deposit the desired amount in your OD account in one transaction. You might want to transfer back from OD to your Savings a/c and then transfer again as lumpsum.

      2. Write an application to RACPC or Concerned Branch with transaction number and declare that you dont need this amount in future and would like to deposit this against your principal. You can also email this to the concerned person.

      3. You will get a call from bank askking weather you would like to reduce EMI or Tenure.

      In 4-5 days this should be done.” – Mr. Shantanu Shukla

      You can follow the same procedure to prepay your Maxgain home loan 🙂

    • Harikrushna Gajjar
      Jun 05 2016 at 3:03 pm

      Thank you very much mam,Is it possible to share an account number and branch details in which the partial payment has made so that I can put evidence in front of the branch manager.Or can I have a contact detail of Mr. Shantanu Shukla for help in getting details?



    • Tarini
      Jun 06 2016 at 3:41 pm

      Hi Mr. Gujjar

      You can attach online articles and this conversation as a proof of the feature being a part of MAxgain . Further you can contact someone at the RACPC and explain the problem to them.

  12. Abhishek
    Jun 03 2016 at 6:16 pm

    I have a SBI loan account of loan 30 Lakh, pending loan is 18 Lakh as I have done re-payment. Can I switch to Max gain?

    • Tarini
      Jun 04 2016 at 6:57 pm

      Hey Abhishek

      Unfortunately you will not be eligible to switch to Maxgain as borrowers are required to have a minimum outstanding balance of 20 lakhs, to switch to this product.

  13. Varun Mahajan
    May 25 2016 at 8:32 pm

    Will I be able to generate provisional interest certificate ONLINE for claiming income tax benefits for SBI maxgain account? Or I have to always visit branch?

    • Tarini
      Jun 03 2016 at 3:38 pm

      Hey Varun

      You can generate the Provisional Interest Certificate online by logging into your account, there is no need to visit the bank every time you need one.

  14. Sandip Kabra
    May 20 2016 at 3:06 pm

    I have taken take over max gain home loan from SBI before 2 months and I have SBI savings account since 6-7 years.
    My question is ‘why is is showing SBI HOME LOAN TL (OCT15) whenever is see it on my net banking page?

    Do they sanctioned normal/regular loan instead of max gain scheme?

    • Tarini
      Jun 07 2016 at 5:28 pm

      Hey Sandip
      It could be a technical error :/ Please contact the branch officials, they will be able to help you out in this regard. Do let me know if I can assist with any other queries 🙂

  15. swapnil
    May 11 2016 at 4:32 pm

    i have a SBI home loan (term loan) of 20+ lakhs. i now would like to convert it to maxgain.
    how much processing fee/ other fees would be charged for conversion?

    Also, what would happen if i pay a small part of amount other than existing EMI to my term loan. would it be beneficial in reduction of home loan duration over the period compared to converting loan into maxgain and paying that part in maxgain current account?

    • Tarini
      Jun 28 2016 at 3:00 pm

      hey Swapnil

      Here’s a clarification to all your queries;
      1. You will need to pay a processing fees of Rs. 1000/- to switch your home loan to Maxgain.
      2. In essence, both will have the same effect with just one difference. While in a regular home loan the surplus amount repaid by you will get absorbed by the bank, however with a Maxgain OD account, you will always have the option of withdrawing that money any time you want.
      3. This means that you can safely park all your surplus liquidity in this account, and withdraw when you like. This will provide you the added benefit of lowering the book balance (the amount on which interest payable is calculated) by the maximum value possible. This implies maximum savings on interest rate for you 🙂

      I hope this helps you make a decision, do feel free to write in regarding any further queries 🙂

  16. Saikrishna
    May 10 2016 at 6:59 pm


    I got home loan(maxgain) of 23,00,000. But, When i check the max gain OD account online, it is showing the available balance as zero even after I transfer certain amount to park in it.

    I have some more questions in this.

    1. I am able to transfer amount into Maxgain account. But not able to see that balance in that.
    2. I am able to see the OD transaction details with this new transaction. But, available balance is always showing Zeroes.
    3. Please help me how to get all the details of maxgain account (like ATM etc)

    Please call me 8197751751 if possible.

    • Tarini
      Jun 16 2016 at 4:27 pm

      Hey Saikrishna

      There’s nothing to worry about here, several customers face this issue. Its most likely to be just a technical error on the bank’s part.
      1. Please check your book balance. Has that reduced by the same amount as parked by you? If yes, then the system is working, its just that the numbers aren’t showing.
      2. Please contact your bank and let them know of the issue, they should be able to fix it for you, or provide you with alternative proofs of the available balance being there 🙂
      I hope this is helpful.

  17. Vijay
    May 09 2016 at 11:18 am

    Hi Tarini,

    I am using SBI Max gain a/c. Have park some money as well . In near future if I would like to transfer some money from max gain to other SBI bank a/c. through online , what will be a process ? Can I directly do it online or I have to visit my home branch for this ?



    • Tarini
      Jun 16 2016 at 4:28 pm

      Hey Vijay

      You can do an online transfer, there is no need to visit your home branch. Its like any other online transfer 🙂

  18. Vinu
    May 07 2016 at 1:39 am

    I need to get the amortization schedule of my SBI Housing Loan A/c. Is there any email id which I can send my request to get the same?

    • Tarini
      Jun 07 2016 at 6:34 pm

      Hey Vinu

      You can write a mail to your branch office to get the amortization schedule of your home loan account, they should be able to assist you with it 🙂

  19. Rohit Khele
    May 03 2016 at 3:04 pm

    Hi Tarini,

    I have question regarding SBI Home Loan Max gain OD account.

    1) Home loan of Rs 54,43,000 has been sanctioned to me. Of which ,Rs 52,50,000 has been disbursed in
    Nov 2015.
    For second and last disbursement I submitted demand letter of remaining Rs 1,93,000 to SBI RACPC ,
    but bank disbursed only Rs 1,70,000 in January 2016.

    I would like to know why bank disbursed less amount than demanded amount.
    Where the Rs 23,000 get deducted.

    2) I have been opted for full EMI from day 1 . My Drawing power is not reducing at each EMI paid.
    Please comment.

    I started paying EMI from Dec 2015.
    SBI debited INSURANCE PREMIUM Rs 14,975.00 from OD home loan my account in March 2016.

    My SBI Home Loan Max gain OD account details are as follows.

    Account Number 000000XXXXXXXXX49
    Description SBI H L MAXGAIN OD (OCT15)
    Name Mr. ROHIT KHELE
    Book Balance -54,40,146.00
    Available Balance 2,854.00
    Limit 54,43,000.00
    Uncleared balance 0.00
    Drawing Power 54,43,000.00
    Currency INR
    Rate of Interest (% p.a.) 9.55%
    Lien Amount 0.00

    Please reply.


    Rohit Khele

    • Soni Singh
      Soni Singh
      May 06 2016 at 12:13 pm

      Hey Rohit,
      Please refer below for your answers
      1) You will have to refer to your Loan disbursement letter/statement to get more clarity over it. In case you are not able to decipher it, please send the statement on Email ID Soni.singh(at ), will check and revert back to you with complete information.
      2) For outstanding loan amount you need to refer to Book Balance. Just fyi… Drawing power remains as it is through the tenure of Loan and this allows you withdraw money (less than or equal to Available balance) if need be.

  20. Rahul Dahake
    Apr 28 2016 at 2:51 pm


    I understand for SBI Max gain account having OD Account,Saving Account & Loan Account.

    Through net banking I have transferred Rs. 2,00,000 from Saving account to OD account.
    But only RS.1,72,000 credited to OD account & Reaming Rs.28000 credited to Loan account.

    Why this is happened? I never selected loan account during transferring the money?
    If i have to take back money from loan account how to do that?what is the purpose of that account?

    Thank you


    • Soni Singh
      Soni Singh
      Apr 29 2016 at 11:07 am

      Hi Rahul,

      There is possibility that you might have some outstanding charges that got deducted now. You need to speak to SBI and get clarity on same.

      If you need any further assistance, you can call on +918108899980.

  21. Bala
    Apr 22 2016 at 9:11 pm

    Hi Tarini,

    Have a Maxgain loan running for 30L whcih is taken for an under construction flat. The moratorium period given is 1 year and is about to end by 30th of May’16. However I availed only 15L as on date. The building is also in 60% completion only. When I check with RACPC they told me the EMI will starts from June’16. Pls suggest on the below for the below situation;
    1) If is possible for the bank to extend the moratorium period for 1 more year.
    2) If not, shall I down size the loan amount to 20 L for now.
    3) If I down size the loan now, can I able to get a top up loan when I required.

    Thanks in advance for you suggestions.


  22. NA NA
    Apr 21 2016 at 1:39 pm

    my pending loan is around 19.5 L with interest rate of 10.2. Now, i’m planning to move to SBI as they have 9.45 interest rate. Processing fee would be around 28K including everything (insurance, processing fee, lawyers etc). As My loan amount is less than 20 L, i won’t be getting MAXGAIN account.
    Should I go ahead with loan transfer or be with my existing bank.


    • Soni Singh
      Soni Singh
      Apr 22 2016 at 7:10 pm

      Hey Nimesh

      Switching to SBI would be beneficial as they are offering interest rate of 9.45% which is less than the interest rate that you are paying to your current lender. However, you can calculate your savings on our website i.e

      You can share your contact number and our home loan advisor will be in touch shortly or else you can call on 8108899980

  23. Ashu
    Apr 19 2016 at 6:25 pm

    Hi Tarini
    Thank you for the sharing the valuable information
    I have SBI term loan since 2009 can you please help me with process around switching to SBIMaxGain. Every time I call my bank(SBI) I get different answer about the process and the response fromSBI is always discouraging.. Appreciate your help in this regard.


    • Soni Singh
      Soni Singh
      Apr 25 2016 at 4:38 pm

      Hey Ashu

      You can avail SBI Maxgain facility if your outstanding principal amount is more than 20 lacs.
      If you are eligible and want to avail the SBI Maxgain facility then you need to pay approx 1% of outstanding principal amount to SBI.

  24. anirban ghatak
    Apr 15 2016 at 1:59 pm

    Hi – please help me understand the MaxGain, my property is under construction but every month i see to deductions from my savings account.

    05-Dec-2015 (05-Dec-2015) DEPOSIT TRANSFER 50,300.00
    01-Dec-2015 (01-Dec-2015) DEPOSIT TRANSFER
    INT TRF FRM 20xxxxxxxxxxx TO 33xxxxxxxxx 32,067.00

    My Loan account reads as below –

    Book Balance -42,77,779.00
    Available Balance 6,97,099.00
    Limit 49,74,878.00
    Uncleared balance 0.00
    Drawing Power 49,74,878.00

    My question is why bank is deducting twice every month. One is the EMI of 34k and secondly after 4 days 50k?

    • Tarini
      Jun 16 2016 at 4:42 pm

      Hey Anirban

      This is strange, and unfortunately I will not be of much help here as its a matter of the bank’s internal functioning. Please contact your loan branch immediately to understand why this is happening. Ideally an EMI is deducted only once. Do you have an insurance too? If yes, then the second deduction could be payment towards the insurance.

  25. Swapnil
    Apr 10 2016 at 10:03 pm

    Hi Tarini,

    I took loan of 30Lac and I see Rate of interest = 9.45% where as my colleague have loan of 50 lac with rate of interest = 9.35%. Do you know any reason why there is difference of 0.10%?

    Thanks in advance,

    • Tarini
      Jun 16 2016 at 5:06 pm

      Hey Swapnil

      Its no surprise that your friend is on a different interest rate, he probably took the home loan after you did. You too can switch to the lower interest rate by paying a processing fees of .5% of your outstanding loan amount 🙂

  26. sushant
    Apr 07 2016 at 11:51 am

    Hi Tarini,
    I have a savings account and Maxgain account in SBI. I want to link my Savings Debit Card to my maxgain account. But Bank associates said that this cannot be done since Maxgain does not have ATM facility.
    Is this information true? If not how do I escalate this issue and get my debit card linked to my Maxgain account?
    Thanking you in advance.

    • Tarini
      Jun 16 2016 at 5:09 pm

      Hey Sushant

      Yes, that’s true. While ATM facility was available on a Maxgain OD account earlier, the facility has been discontinued lately. So while you ca’t get your debit card linked to the OD account, SBI still issues cheque books for making deductions from this account. Do write in for any further queries 🙂

  27. vinoth
    Feb 24 2016 at 11:35 pm


    I have got approval for 50lacs loan in SBI( considering 80:20%) for a specific project which i have booked. But i just need 45 lacs as loan as i have additional 5 lacs in hand . now which option is recommended here considering the current and future perspective.

    option 1 : avail complete 50 lacs loan from bank as they are ready to give it .Since i have already got my own 5 lacs in hand , park them in maxgain account. in effect Interest outgo would be the same now as if i had availed only 45 lacs loan but EMI would be 50k+ considering 50 lacs.

    option 2 : Avail only 45 lacs loan which is needed . Pay the 5 lacs in my hand to the builder without availing it from the bank. Here my EMI would be 45k+ from the beginning.

    Which would be best option from a consumer perspective.

    • Tarini
      Feb 25 2016 at 2:02 pm

      Hey Vinoth

      This depends on what’s your priority;
      Option 1: while your EMI will be higher, you will not lose out on interest and will still have the flexibility of withdrawing the 5 lakhs in the future, in case the need arises.
      Option 2: While here, you will have a lower EMI (this means more financial flexibility for you at present), and the 5 lakhs will be paid off to the builder.
      So essentially, you need to choose between long term benefits or short term benefits, its up to you. I will not be able to make a suggestion as I am unaware of your current financial standings. I hope this helps you make a decision, do let us know what you decide to go ahead with.

    • irfaan
      Apr 13 2016 at 2:44 pm

      Dear Ms Tarini
      I have taken a home loan of 38 lakhs @ 9.35% in my od accunt the debit interst seems to be varing every month

    • Tarini
      Jun 16 2016 at 4:58 pm

      Hey Irfaan

      Please get in touch with your bank regarding the same, they will be able to clarify as to why the varying value of debit interest every month. I will unfortunately be of no help here as i am unaware of the details of your case.

  28. sachin
    Feb 19 2016 at 3:49 am


    Would like to know the procedure to close the max gain Home loan account..i still have 15 years of loan tenure but want to close it now by repaying all amount.


    • Tarini
      Feb 19 2016 at 2:48 pm

      Hey Sachin

      you can put in a written application in the bank. For foreclosing the entire home loan, you will need to go down to the bank in person. You can either transfer the entire amount to you OD account and ask the bank to deduct that amount, or maintain the balance in your savings account and ask the bank to deduct from there. I hope this helps!

    • Navtej Paul Singh
      Apr 11 2016 at 6:28 am


      Do we need to go personally to close the account? Can’t we send email to SBI that, Please move the amount to OD and stop deducting EMI .


    • Soni Singh
      Soni Singh
      May 03 2016 at 6:16 pm

      Hi Navtej

      To close the account you need to personally visit the bank.

  29. Niranjan Rane
    Feb 16 2016 at 4:41 pm

    Hi Tarini,

    First of all Thanks for Good Job u & ur team doing……its really gr8 help

    Below is my max gain home loan detail for Under Construction Property as on date:

    Book Balance -31,54,790.00
    Available Balance 11,45,523.00
    Limit 43,00,313.00
    Uncleared balance 0.00
    Drawing Power 43,00,313.00
    Interest rate: 9.35%

    Following are the queries:
    1. My sanction home loan amount was @47L. But loan disbursed was @42L till date. Only 1 instalment @1L is remaining. Whether I need to inform to the bank that I will not be requiring that balance 4L loan. Hence by reducing DP & Limit by 4L (Or even might be last installant). Whether it will reduce loan tenure period?
    2. As my EMI was going on for full sanction home loan & even in between I changed interest to current one. Can you send across amortisation schedule for above details on or kindly drop your email so that I can send across amortisation schedule prepared by me and give ur comments I have asked SBI people many times but nobody gave me till date.

    • Tarini
      Feb 17 2016 at 3:51 pm

      Hey Niranjan

      Thank you for the appreciation! Here’s a clarification to all your queries:
      1. From what I understand, the total home loan amount is 43L, of which the entire amount has been disbursed (since the limit = drawing power). So there is no need to reduce the DP limit.
      2. Sure Niranjan, we will be happy to help. Please send your amortization schedule along with the queries to and I will get back to you at the earliest.
      Have a nice day ahead! 🙂

  30. Srinath
    Feb 16 2016 at 11:01 am

    I recently switched from a SBI Term housing loan to a MaxGain loan. I had submitted all the paper work to the bank and before the switch could happen, I had to travel out of country on a long term. I’m in the US now. The problem is that a week ago, I got an email that my Term loan was successfully converted to Maxgain loan and I have to re-authorize a new ECS payment since I was assigned a new loan account number.

    I have my savings account in another BANK (not SBI) and I’m in the US and I cannot physically get my SB bank authorization and paper work done.

    What are my other options to continue my EMI payments ? I spoke to my RACPC chief manager, but he insist on authorizing someone to enable ECS again which is going to take a lot of time and he says post dated checks are not accepted.
    Can I pay the EMI through NEFT to the maxgain account? I’m fast approaching my due date.


    • Tarini
      Feb 16 2016 at 2:43 pm

      Hey Srinath

      The information given to you by the bank is accurate, post dated cheques are not accepted by SBI. The best option is to authorize someone to complete all the formalities on your behalf.
      About paying the EMI through NEFT, please check with the bank manager, he will be able to guide you best here.

    • Srinath
      Feb 16 2016 at 9:57 pm

      Thanks Tarini. Can my brother (who is in India) authorize EMI deduction from HIS PERSONAL bank account ?.

    • Tarini
      Feb 17 2016 at 2:40 pm

      Hey Srinath

      Technically for doing so, your brother will have to be a co -borrower, however the bank should make an exception in your case. Please check with the bank manager.

    • Srinath
      Feb 19 2016 at 2:11 am

      Thanks a lot for your help. It helped answer my questions.

    • Tarini
      Feb 19 2016 at 1:19 pm

      You’re welcome! Do feel free to post any further queries 🙂

  31. Shiva Shankar
    Feb 12 2016 at 1:07 am

    I have SBI-Max gain account. My loan amount is Rs.27/- Lakh, EMI is Rs. 24479/- and my tenure is 23 years.

    If I pay Rs. 50K as additional for Mar 16. Will the EMI amount will be deducted? or can you explain me the savings?

    • Tarini
      Feb 19 2016 at 5:57 pm

      Hey Shiva

      Since you have a Maxgain account, you will not be able to make a prepayment of Rs. 50,000. In Maxgain, a prepayment is allowed only 2-3 times during the entire loan tenure, with each prepayment amounting to a minimum value of 20% of the outstanding loan amount. Hence, the additional deposit of Rs. 50,000 will be treated as a deposit into your OD account. This will help decrease the book balance (the amount on which interest payable is calculated). This will help you save on the total interest payable over the entire loan tenure. I hope this helps 🙂

  32. Jitendra
    Feb 11 2016 at 2:46 pm

    Hi Tarini, I have a SBI maxgain loan of 30Lakh for a under construction building. i have disbursed 28L out of 30L. Since I had put some extra money in my OD account and hence the available amount is still 10L (higher than 30-28L = 2L).
    In this case, Can I still disburse 10L or only 2L? Please guide


    • Tarini
      Feb 12 2016 at 3:34 pm

      Hey Jitendra

      The available balance is independent of your outstanding principal amount, by having a higher available balance than the undisturbed loan amount, you do not become eligible to get an equivalent amount. You will still be eligible to get only 2L. If you need a higher amount, you could apply for a top up loan. I hope this helps.

  33. Manish Jain
    Feb 08 2016 at 8:32 pm

    Hi This is Manish Jain – I have a max gain account with SBI and taken 28 Lacs. now i have deposited 29 Lacs to that account so should i get the Interest @9.8??

    • Tarini
      Feb 09 2016 at 2:30 pm

      Hey Manish

      No, you will not get any interest on the surplus amount deposited in your OD account. The best option here is to close your loan account by asking SBI to absorb the available balance.

  34. Parin M
    Feb 08 2016 at 5:09 pm

    Dear Tarini,

    I got a full disbursement of Rs 72,00,000 /- on 28th December 2015.

    I have paid my 1st EMI of Rs 63,000/- on 15th January 2016

    On 04-Feb-2016, i deposited a surplus Rs 83,000/- into my Maxgain Account (A/c no. 35421971974)

    However the same amount is not getting reflected in my available balance of Maxgain Account.

    My account statement looks as below

    Description SBI HL MAXGAIN OD(WOM-OCT15)

    Book Balance -71,09,880.00
    Available Balance 34,709.00
    Limit 71,44,589.00
    Uncleared balance 0.00
    Drawing Power 71,44,589.00
    Currency INR
    Rate of Interest (% p.a.) 9.5%
    Lien Amount 0.00

    Request you to kindly guide me on the issue as to why my available balance does not show balance of Rs 83,000/-

    I would need that amount to be transferred into my SBI savings account in order to pay the EMI of Rs 63,000 /- due on 15th February 2016., as there is standing instruction on my savings account for debit of EMI amount.

    • Tarini
      Feb 08 2016 at 6:02 pm

      Hey Parin

      This is very unusual, please contact your bank immediately as this could be a technical error on their part. If the auto EMI payment bounces, then you will be liable to pay a penalty. Unfortunately, I will not be able to help you out in this regard. Thank you for contacting us.

  35. Kunal
    Feb 07 2016 at 1:58 pm

    I took a loan of 32 lakh from sbi and got one max gain suraksha. How can get tax benefit from suraksha accont

    • Tarini
      Feb 08 2016 at 12:59 pm

      Hey Kunal

      Any premiums paid towards the Suraksha Insurance will be non taxable under;
      – section 80C up to a limit of Rs. 1.5 lakhs, this amount is inclusive of all your principal repayments too.
      – section 80D up to a limit of Rs. 15 k.
      I hope this helps 🙂

  36. Adesh
    Feb 03 2016 at 2:59 pm

    Hi Tarini madam,

    Thank you for your valuable post.

    I have taken HL of Rs. 37.5 Lacs on dated 16th Dec 2015. Following transactions occurs in my account:

    Interest Debited on 31st Dec = Rs. 15585
    First EMI debited on 18th Jan = Rs. 32081 (deposited in OD account)
    Amount Deducted on 31st Jan from OD account = Rs. 44634 (Rs. 29233 is interest part and Rs. 15401 is principle part)

    When I asked SBI officers, how they can deduct Rs. 44634 from my account as my EMI amount is Rs. 32081?
    How they can charge me higher amount than EMI?

    Then SBI Officers replied me that additional deduction in each month and principle amount will be deposited on next EMI date.

    Dear Tarini madam, may I know is it the working way for max gain account??

    Waiting for your reply…

    Thank you…

    • Tarini
      Feb 09 2016 at 3:32 pm

      Hey Adesh

      Thank you for the kind words. This is very strange as the bank is not allowed to deduct any amount from your OD account. This is not how a typical Maxgain account works. Please get in touch with teh regional office to bring this practice to their notice. No additional amount can be deducted through ECS without prior notification to the customer.

  37. Awdhesh Kumar
    Feb 02 2016 at 11:00 am

    I took a takeover loan from ICICI of RS 6012664 for my house constructed. And I am living in.
    In my OD Account below is the snapshot. How is book balance calculated? What is available balance?
    And what is limit.
    Why Book Balance and available limit is more that the loan amount?
    Please help

    Account Number XXXX
    Description SBI HL MAXGAIN OD(WOM-OCT15)
    Name MR XXX
    Book Balance -60,31,443.00
    Available Balance 17521.00
    Limit 60,48,964.00
    Currency INR
    Rate of Interest (% p.a.) 9.5

    • Tarini
      Feb 08 2016 at 3:39 pm

      Hey Awdhesh

      Let’s begin with understanding each term in your account statement:
      1. 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)
      2. Limit: This indicated the maximum amount you are eligible to borrow.
      3. Available balance: This reflects the balance of money parked/ debited by you in the OD (over draft account).
      4. Book Balance = drawing power – available balance. The actual interest payable by you, is calculated on a daily basis based on this amount.

      in the details posted by you, the LIMIT = 60,48,964.00, (which should technically be equal to your outstanding principal amount). This amount is higher than the book balance = 60,31,443.00 and available balance = 17521.00. So everything looks fine here 🙂
      Do note, that while the available balance can be higher than the drawing power, the book balance is always in minus and can never be higher than the drawing power.
      Regarding Debit interest, its deducted either as a payment towards your life insurance plan or as additional charges incurred in processing your loan.
      I hope this helps 🙂

  38. Naveen
    Jan 29 2016 at 2:24 pm

    Hi Tarini,

    I need some clarification.

    Q1. I pay full EMI towards my loan, however complete loan amount has not been disbursed by bank yet. So I would obviously be paying some extra amount to bank, as EMI (Priniciple + Interest) of the disbursed amount would be less compared to the amount that I am paying (for full loan amount).If it is so then where is this extra amount goes ?

    Q2. Does the “Available Balance” figure tells the complete amount that can be withdrawn from OD account ?

    Q3. How can I calculate the surplus amount that I have parked in my SBI Maxgain account?

    • Tarini
      Feb 08 2016 at 1:48 pm

      Hey Naveen

      Here’s a clarification to all your queries;
      1. No, you are not paying anything extra to your bank. Since you are paying full EMI to the bank on a partially disbursed loan, you will be bale to close your loan sooner as the entire EMI goes towards an increased principal and interest. To confirm this, please request an amortization schedule from the bank through mail, you will be able to see exactly how your EMI is being distributed.

      2. Yes, available balance is indicative of the total amount that can be withdrawn from the OD account. However, since your property is still under construction, you will not be able to make any deductions at present. You will be able to do so once a copy of the posession certificate has been submitted to the bank.

      3. There is no need to calculate the surplus amount being parked by you, SBI does all the maths for you. While the available balance shows you the entire amount parked till date, in the OD account. The book balance shows the reduced amount on which actual interest is charged (due to your OD account balance). So all you need to do is, refer to these values in the account statement online.

      I hope this has been helpful to you 🙂

  39. Raj
    Jan 28 2016 at 12:10 pm

    How will we get Amortization table; is it available at online or we will to contact branch or will it be sent to our email id on monthly basis?

    • Tarini
      Jan 28 2016 at 1:00 pm

      Hey Raj

      The amortization schedule is provided for the entire home loan tenure in one go. You will need to put in a request for this, the bank will mail it to you 🙂

    • Jithendra
      Jan 30 2016 at 9:20 pm

      Hi Tarini,
      Today I have done take over of my home loan from LIC to SBI. Currently outstanding amount of my loan in 17,50,000. I am not aware that the Max gain account is not available for the loan amount of less than 20,00,000. In SBI I have applied top up for 10,00,000 in addition to my outstanding 17,50,000. But SBI is saying that the top up will not be considered as home loan. So we can’t provide max gain account. What is the best way to get max gain account for my home loan? Can I apply for wood work loan for 2,50,000? so my total home loan becomes 20,00,000. Will wood work loan be considered as home loan? In the LIC i have initially taken 15,00,000 home loan + 5,00,000 wood work loan. After 2 years my outstanding loan amount is 17,50,000. Which has been take over by SBI. I have moved to SBI, because we have option of max gain. But now all my expectations has gone, because I am not eligible for max gain account. Can you please suggest me the better approach to get the max gain account for my loan.


    • Tarini
      Feb 08 2016 at 1:24 pm

      Hey Jithendra

      I apologize for the delayed reply, moving on to your query;
      1. The information provided to you by the bank officials is correct. Maxgain has a lower limit of 20 lakhs, any home loans below 20 lakhs are not eligible for this product.
      2. Even if you apply for a woodwork loan of 2.5 lakhs, it will be treated as a top up loan and will not be clubbed with your existing home loan.
      3. There is no other way, through which you will be able to get a Maxgain home loan.
      However, switching your home loan to SBI from LIC may not have been a complete waste of time and effort as SBI has a record of offering the lowest rates in the market, this will ensure that the total cost of your home loan comes down substantially, compared to LIC.
      I hope this helps.

  40. jerril
    Jan 23 2016 at 11:34 am

    I have few doubts.
    I have taken around 25 Lakhs loan from SBI (Maxgain). Loan duration is 8 years. EMI around 44K.
    FLAT is in construction stage and i have payed about 60 lakhs already (40 Lakhs my contribution & 20 Lakhs from bank). The total value of flat is around 84 Lakhs. EMI has started and its about 6-7 months now. Possession of flat is by Dec-2016.
    1. While logging into my SBI account im not able to see any OD account linked to it. So what is the procedure to link OD account(loan account) to my SBI account.
    2. How much money can i claim for income tax benefit.
    3. Is it possible to request for Home loan interest certificate on mail when my loan account is not linked to my SBI account.

    • Tarini
      Jan 27 2016 at 4:22 pm

      Hey Jerril

      I apologize for the delayed response to your query. Here’s a clarification for all your questions:
      1. For linking the OD account, please contact your bank, they should be able to help you out. Since your property is still under construction, you will not be able to deduct any money from the OD account until you submit a Possession Certificate to the bank as a proof of completion of construction of the property. So I would advise that you deposit money in your OD account accordingly.
      2. You will be able to claim IT benefits only on the interest payments made in the under construction phase. You can start claiming benefits once you get possession of property, in 5 equal installments over the next 5 years, up to a limit of 1.5 lakhs for each financial year.
      3. Please check with your bank regarding the generation of the home loan certificate. I hope this helps 🙂

  41. kushdesh
    Jan 20 2016 at 10:35 pm

    Is it possible to do more repayment than scheduled (instead of parking of surplus)? Will then can I claim section 80c benefit?

    • Tarini
      Jan 21 2016 at 12:12 pm

      Hey Kudesh

      Its possible to make bulk prepayments in Maxgain 2-3 times. For doing this, the value of repayment needs to be at least 20% of the outstanding loan amount. you will be able to claim benefits under section 80C for these pre payments.

  42. Prakash
    Jan 19 2016 at 9:02 pm

    Can you clarify if interest paid during a financial year for SBI MAXGAIN loan which is not yet fully disbursed as property is still under construction be claimed under Income Tax benefit. Full EMI has already started as moratorium period of 18 months is over.

    • Tarini
      Jan 20 2016 at 7:03 pm

      Hey Prakash

      Since your property is still under construction, you will not be able to claim any tax benefits immediately. You can claim tax benefits on the interest component of your EMI once you have possession of your property in 5 equal installments, over the next 5 years by clubbing it with the IT deduction claims in those years. I hope this helps 🙂

    • Prakash
      Jan 21 2016 at 9:21 pm

      Thanks Tarini. This helps. I have found answer to my previous query as well so it can be removed for any moderation.

    • Tarini
      Jan 25 2016 at 11:56 am

      Sure Prakash, we’ll take care of that. Do let us know if we can help with anything else 🙂

  43. Anant Tamboli
    Jan 18 2016 at 12:52 pm

    Hi Tarini

    I have SBI Home Loan of RS 30 Lakhs. I often park surplus amount in MaxGain OD account and get benefit on interest. By parking amount in OD account, neither my principle gets reduced not the tenure.Now I want to prepay towards home loan principle of RS 1 Lakh. I don’t want this 1 Lakh amount to be parked in OD account. I want to pay it towards Principle so that total loan tenure gets reduced. But when I visited home branch and asked for the same, they said ‘I can not pay RS 1 Lakh towards Principle. I will have to pay minimum 20% of total home loan amount i.e. 6 Lakhs’. I feel their reply and explanation strange. Actually I should be able pay any amount towards principle to reduce the home loan as other banks do. Your expert comments about these rules will be really helpful. Can you please comment on the same.

    • Tarini
      Jan 25 2016 at 5:51 pm

      hey Anant

      The information given to you by the bank officials is accurate. As per the rules and regulations regarding SBI Maxgain, borrowers are allowed to make only 2-3 prepayments during the entire tenure of the home loan. Each prepayment needs to equal minimum 20% of the outstanding principal amount. So for now, you can go ahead and park 1 lakh in the OD account, you can make the repayment when you have enough balance in your OD account, that comes up to 20% of your outstanding loan amount. I hope this helps.

  44. Arun Gupta
    Jan 15 2016 at 11:35 am

    Hi Tarini,

    I have taken a home loan of Rs. 12 Lakh from SBI to buy a under construction flat in Jaipur.

    Please let me know how much amount is required to park in the OD account to reduce the EMI as I want to clear the loan in next 4-5 years.

    1) If there is any problem if I will deposit certain amount every month in the OD account to clear the balance showed?

    2) Can I get the benefit of the same in reducing the EMI ?



    • Tarini
      Jan 18 2016 at 1:15 pm

      Hey Arun

      Here’s a clarification to all your queries:
      1. You can go ahead and park all the surplus liquid money you hav ein your savings accounts etc. in the OD account and route all your payments through this account. This way you will be able to utilize the OD account facility to the maximum.
      2. No, you will not face any problem if you park a certain amount of money in your OD account every month. This will help you reduce the book balance (the amount on which interest payable is calculated).
      3. While parking money in your OD account helps reduce only the interest payable, it does not reduce the EMI as such. Instead it helps you reduce the total tenure of the home loan.
      You can put in a written application with SBI to reduce/ revise your EMI, I hope this helps 🙂

  45. Sruthi
    Jan 12 2016 at 2:09 pm

    Hi Tarini,

    We have a SBI Maxgain home loan. Is it possible to take additional loan on this for woodwork?


    • Tarini
      Jan 18 2016 at 11:56 am

      Hey Sruthi

      Yes, you can apply for a top up loan for home improvement in your branch 🙂

  46. Abhishek
    Jan 11 2016 at 11:38 pm

    Currently I have parked surplus amount which equals outstanding principal and hence interest is zero. However i see that i cant avail this zero interest under IT exemption for Let out property which allows exemption upto 1.5L of interest. In such case should i take off 12L and put it somewhere else so that interest comes out to be 1.5L and I get 30% tax benefit while at the same time I get atleast 10% on 12L parked at other place?

    • Tarini
      Jan 18 2016 at 12:01 pm

      Hey Abhishek

      Yes, you could either invest the amount elsewhere or you could simply close the home loan by putting in a written application with SBI to close your home loan and absorb the OD account balance as prepayment. I would suggest that you go with the option that helps you save/ earn maximum interest 🙂

  47. Archan Pagedar
    Jan 09 2016 at 8:48 am

    Hi Tarini,

    I have a new SBI MaxGain home loan and I would like to know how I can get ‘Provisional Home Loan Interest Certificate’.

    As I checked online on OnlineSBI, it shows that “You do not have any housing loan accounts. If you have a Maxgain account, it will not be visible here, but under Transaction Accounts. Housing Loan Interest Certificate for Maxgain is not available online.”


    • Tarini
      Feb 08 2016 at 4:45 pm

      Hey Archan

      You can either put in a request for the certificate through mail, or visit the bank and put in a written request.

  48. Vishnu
    Jan 08 2016 at 8:04 pm


    I had a normal TL home loan in SBI. I have got that changed to Max Gain. The interest rate is also the same. The original EMI that I was paying was 40000/- (this is for 30L taken for a pay back duration of 10 Years). However, once the loan got transferred to Maxgain, the EMI has become 44566/-. I am not able to understand the reason. Can you please let me know as to why the discrepancy?
    2. My current Outstanding is 295000, If I park funds of around 25L, will the interest be charged only on 450000?

    Thanks and Regards,

    • Tarini
      Feb 09 2016 at 3:03 pm

      Hey Vishnu

      1. I believe the bank will be able to explain the increase in EMI to you best, I will not be able to help you out here. Please get in touch with them.
      2. Regarding the second query, yes, book balance is = drawing power – available balance. So if you park 25L in your OD account, then interest will only be charged on the remaining 4.5L.
      I hope this helps.

  49. Aslam Mandaviya
    Jan 07 2016 at 4:54 pm

    Hi Tarini,

    Thanks for FAQ’s.

    My Maxgain HL was sanctioned on 06th of March 2014 & till 5th of Jan 2016 I paid 22 installments of INR 20,000/- p.m.

    Also I have credited INR 9,60,000/- in my OD account & now booked balance is 8,67,606/-.,

    As per calculation, I have deposited INR 14,00,000/- {(20000X22)+960000}. As on 05/01/2016, Avl Balance shows 10,68,516/-. It shows interest in debit column; avg. interest paid since March’15 is INR 10,000/- p.m.
    As I calculated, total interest paid is INR 3,32,000 as on date. Why is it so? Why interest debited is not 22000/-?

    Looking forward for your reply!

    Best Regards,

    • Tarini
      Feb 09 2016 at 3:11 pm

      Hey Aslam

      I believe you are a bit confused about how the Maxgain account works. Let’s begin with understanding what each term in your account means:
      1. 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)
      2. Limit: This indicated the maximum amount you are eligible to borrow.
      3. Available balance: This reflects the balance of money parked/ debited by you in the OD (over draft account).
      4. Book Balance = drawing power – available balance. The actual interest payable by you, is calculated on a daily basis based on this amount.

      Moving on to your query, this confusion can be easily resolved by tallying all your EMI payments with the amortization schedule. You can put in a request through mail. The amortization schedule will provide you an exact breakup of the EMI into interest and principle component.

  50. Mahesh Mungarwadi
    Jan 05 2016 at 9:04 pm

    Hi Tarini,

    I have one consideration i.e. I can go for amount of Rs.15 lac for 8 years normal SBI home loan, total interest to be paid at 9.5% would be Rs.647167. so the other option would be max-gain, in that the min loan amount as per bank is Rs. 20 lac and let say I will go for 12-15 years. which one would be a beneficial in terms of total interest saved.

    • Tarini
      Jan 06 2016 at 3:33 pm

      Hey Mahesh

      While Maxgain is a good home loan scheme in which you can park your surplus savings to reduce the interest payments, the fact that you will have to take this loan for a higher duration means that you will end up paying more interest than the regular home loan of 8 years.
      So if you need a home loan for just Rs. 15 lakhs for 8 years, then please go for that. As in the latter case you will end up taking a higher loan amount (which you may not need) for a much higher tenure of 15 years.
      I hope this helps 🙂