### Confusion with SBI Max Gain home loan

POSTED BY ON June 3, 2012 6:33 pm COMMENTS (27)

Hello,

I have taken a Max Gain home loan for Rs. 39,50,000/-. The loan was for a ready to move in apartment.

Here’s the disbursement schedule:

2/May/2012 – Rs. 36,69,762 (DD to the builder)

9/May/2012 – Rs. 2,80,238 (DD for registration) [Total 39,50,000 has been utilized now]

Then I moved some fund to the OD:

23/May/2012 – Rs. 2,59,000/-

31/May/2012 – Rs. 25,000/-

So total deposit = 2,84,000/-.

On 31st, they have debited Rs. 34,489/- as interest.

Expected balance: (2,84,000 – 34,489) = 2,49,511/-.

However, on the net banking page, the system shows only 2,16,749/- as available balance. That means, a shortage of Rs. 32,762/-.

Interestingly, the drawing power has got reduced from 39,50,000 to 39,17,238. That means, it’s reduced by the same shortage amount of 32,762.

I’m totally surprised with this calculation. As far as I understand, this 32,762 has got deducted directly from the principal amount, but I never instructed the bank to do so.

My EMI is 38,715/- and that will come to the OD by means of ECS from Axis bank on 5th of June.

Q1) Can you please help me with this calculation? I did not want to pay off 32762 immediately because I want that money for some other purpose. Is it possible to get it back?

Q2) Also, how did they come to the figure of 34,489/- as Interest? My understanding of interest calculation is as below.

2/May/12 – 8/May/12:

36,69,762 @10.75 for 7 days = Rs. 7565.74

9/May/12 – 22/May/12:

39,50,000@10.75 for 14 days = Rs. 16286.99

23/May/12 – 30/May/12:

36,91,000@10.75 for 8 days = Rs. 8696.60

31/May/12

36,66,000@10.75 for 1 day = Rs. 1079.71

Total = 33629.04/- Is my calculation wrong or am I missing something here?

It would be great if someone can help me understand this.

Thanks,

Gireesh

## 27 replies on this article “Confusion with SBI Max Gain home loan”

1. vijay says:

23,40,000 rs maxgain loan with 22,274. Rs monthly emi is dissbursed on 21may from sbi bank. I also given 5 cancel check and filled ecs from. But till month of july no ecs is not cutting through my account. On 5 july i visit sbi bank and tell manager then he told me you account becomes irregular fine is 37,391rs. Please help me

2. Balwant says:

Sir,

My EMI is deducted on 10th of every month. But my drawing power is not getting reduced on the same day. Previously I did not monitor it but from this month (June 2015) I started monitoring this and found this case.

Is there any other date on which principal is deducted from Drawing Power?

1. Inam says:

I do observed the same problem, but if I compare the current drawing power and drawing power fem month before I can see its reduced.

But for this month after I paid EMI i dont see drawing power reduced. is it any time period for reflection?

1. Ritesh says:

I am having the same issue in my MaxGain account. The drawing power is not getting reduced even after regular EMI payments.

1. mayur says:

How did you guys resolve this issue. Even my drawing power is not reducing at all. that means principal is not getting deducted. Please let me know.

1. Ritesh says:

Your Principal will start reducing after the moratorium period is over. Happened for me as well.

3. Dear Hemank, if you want to avail a joint loan, no matter pre approved one or post property selection, the name of wife should be added at the time of basic application itself. Once the loan is sanctioned in your single name, you can not add your wife into it.

Thanks

Ashal

4. Hemank Chheda says:

Also, can i take an pre approved loan on my name and can i add my wife’s name in the pre approved loan later ???

5. Dear Hemank, a plain answer is yes. At that time, you w’d have to contact SBI for reduced EMI for reduced loan amount. In my personal opinion, use your own money to top up into MG instead of paying to builder. This ‘ll keep your liquidity in tact.

Thanks

Ashal

6. Hemank Chheda says:

Dear Ashal,

Thanks a lot for your valuable inputs.

My Question is: Suppose i take full loan on my salary which stands out to be 40 lacs. Monthly EMI Stands out to be around 40k. I am taking a loan for an under contsruction property. Possession is around 2 yrs from now. Till the last disbursement is done, suppose i collect an additional 5 lacs by that time and make my own contribution. Thus, my final loan amount from the bank would be 35 Lacs since i have made an additional own contribution of 5 lacs. Now can i ask the bank to reset my EMI to 35k for 35 Lac loan because i am still paying EMI on my approved loan of 40 lacs which is around 40k.

Thanks,
Hemank

7. Dear Ppipara, please read my recent reply given to you in that discussion of Max Gain.

thanks

Ashal

8. ppipara says:

Dear Ashal,
The issue of Gireesh is same as reported to you in another forum. I checked statement, principal seemed to have been repayed.

Thanks
Praveen

9. dear Ganga, please relax. No need to worry for the transactions between your & your family member for loan repayment purpose.

No Tax liability is there on you to be paid to bank or any other.

thanks

Ashal

10. Sarvesh Sood says:

Hi Gireesh,

Could you please forward me your email id. I’m facing similar issue with my SBI home loan and wanted to have a word with you.

Thanks,
Sarvesh

11. Ganga says:

Hello Ashal,

I have taken SBI max gain home loan..

My dad and wife helps me to repay my home loan but they are not co-borrower or co-appicant in home loan.. So do i need to pay income or any tax to bank?

Currently i am doing all my transactions online. Dad and my wife transfers money online in my SBI savings account and then i am transferring it to Max gain Home loan account.

If Any body has any detailed information please share with me as a don’t want to get in trouble later on..

Thanks,
Ganga

12. Gireesh says:

Hmmm! that makes sense. However, I was not planning to keep back up in the Axis a/c instead I thought I would maintain surplus in the OD itself.

Yes, you are right, on a safer side, it’s better to keep additional fund and if it is in the SBI S/b account itself, then it will be easier to move around.

BTW, how do I schedule a transfer from s/b to o/d? I did not find any such option in the netbanking page.

Thanks,
GIreesh

1. Dear Gireesh, you can schedule the fund transfer from the funds transfer option. From OD to SB or vice verse.

Thanks

Ashal

1. Ganga says:

Hello Ashal,

I have both salary account and max gain account in SBI.

As you said,
1. I move my salary from salary account to max gain home loan account.
2 . Then, I always move the sufficient amount 2 days before the EMI date back to salary account, as I pay EMI through ECS transfer from salary account.

being salary account holder, i can keep zero balance in that account.

But my question is that, if don’t move the money back to salary account before EMI date..
What will happen?

1. Will i be a defaulter? OR.
2. Will EMI deducted from available balance?

Since currently, i am in france, i can’t go in branch personally…
I will visit the branch in coming diwali…

1. Dear Ganga, if on the date of EMI, no money or less money is there, EMI ‘ll not be debited & for that month, your EMI ‘ll be treated as a bounced one & accordingly you w’d have to pay penalty on that. Please kep note of this. Regarding MG top SB transfer. You can schedule at a single strech for next 12 months so no need to do it manually again & again every month.

Thanks

Ashal

13. Gireesh says:

Just that my salary comes in the Axis account. While processing, SBI asked me to get ECS from the salary account.
Also, I didn’t really bother to check if I have an option to use the SBI S/b account to pay off the EMI.

Does that make any difference?

1. Dear Gireesh, Yes if you are paying EMIs from SBI SB account, it can make a difference. How?

Simple in case of your Axis bank, you are maintaining a balance of at least 2-3 EMIs to be on safer side. In case of SBI SB account, no need to maintain such balance in SB account. In fact park that balance money into Max Gain OD account itself & use netbanking to transfer EMI amount 2-3 days prior to EMI date in to SB account from Max Gain OD account. At a time this scheduling can be done for 12 months. Now you are already aware that extra money parked in Max Gain OD account even for 1 day save some interest, here you are keeping it for many days.

Thanks

Ashal

14. Gireesh says:

Hi Ashal,

Thank you very much for the reply!

That s/w glitch sounds scary. I was actually planning to issue a check to my interior designer. Luckily the check got delayed till 1-June! Imagine if I had issued and then if it had come to the bank for processing on 31st, they would have charged check bounce charges as well 🙁

The interest part; even if they had prepared the DD on the same day of 1st disbursement itself (2nd May), the calculation doesn’t match. Can you please confirm the way I calculated is correct?

Anyway, I’m planning to wait for the EMI to come, and then will meet the bank manager. I’ll keep you posted.

Thanks,
Gireesh

1. Dear Gireesh, we ‘ll wait for the updates from you. By the way, why are you not paying EMI from a normal SB account of SBI instead of that Axis bank SB account.

Thanks

Ashal

1. Gireesh says:

Ok, finally managed to get time to go to RACPC and sort this out.

I visited the branch manager then got redirected to RACPC then got redirected to account maintenance section @ RACPC.

Though it was tough to explain this, the manager carefully paid attention to my case and found the issue that somehow the amount was wrongly calculated as account irregularity and adjusted against that.

Based on my complaint (over email), they have reverted the amount back to my OD account so that I can withdraw it if needed.

Thanks,
Gireesh

1. Dear Gireesh, congratulations for the completed task on the positive note. All’s well that ends well.

Please asking for more & more help here in the forum.

Thanks

Ashal

15. Dear Gireesh, In the first month of max Gain, such principal recovery cases are reported from others too (including me). It seems a bit of software glitch in SBI’s operation. As the amount is already adjusted against your loan balance after deduction, you can’t claim it back.

Regarding that Interest calculation, the difference may come if the DDs were prepared 1 or 2 day early & were handed over to you on the date mentioned by you.

Thanks

Ashal

1. Udhan says:

Gireesh/ Ashal,

Is this deduction happens only for the first month. My case is as similiar to Gireesh. I see there a considerable reduction ( close to a month’s EMI) towards my available balance and drawing power. Do I need to follow it up to make sure it wont happen in next month as well ?

~Udhan

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