Please help me understand following

POSTED BY Mithun Patil ON March 19, 2013 12:49 pm COMMENTS (25)


Please help me understand – What is Book Balance, Available Balance, Limit and Drawing Power. I have sanctioned 28.5 Lacs loan from SBI. 100% disbursement is done from bank. When I logged in to max gain account, I got following figures

Book Balance           -27,40,007.00
Available Balance     64,031.00
Limit                      28,04,038.00
Drawing Power        28,04,038.00

Please help me understand above figures.

25 replies on this article “Please help me understand following”

  1. ShashankD says:

    Dear Ashal,

    I am trying to transfer some amount from my saving to OD/Maxgain account but the following message appears:
    Transfer will result in closure of bank account.Please contact your branch.

    I was able to transfer amount earlier.Now i am not able to repay any installment or surplus amount.
    My saving account is NRE.
    I have one RIN Suraksha account/loan account associated with OD account.
    Bank persons are not able to solve my problem. Account status is as follows:

    Description SBI H L MAXGAIN OD (DEC13)
    Book Balance -12,39,306.00
    Available Balance 14,71,209.00
    Limit 27,10,515.00
    Uncleared balance 0.00
    Drawing Power 27,10,515.00
    Currency INR
    Rate of Interest (% p.a.) 9.45%
    Lien Amount 0.00

    Please help!

  2. Nilkanth says:

    Hi, In July 2015 SBI issued me a SBI Yuva Maxgain Home Loan. and i got OD account also. In that i have parked some surplus amount of Rs 20 K which i want to withdraw now. Pls help me to understand how can i withdraw the amount that is showing as available balance in my statement.

  3. Rohit says:

    Dear Ashal

    Thanks for the awsome help. I have a query which unfortunately the SBI people are unable to solve.

    I had taken a loan of Rs 54 lakhs. Over last two years have prepaid Rs 20 lakhs ( apart from EMIs) and normal EMIs of rs 53k every months.

    1) My drawing power is Rs 51 lakhs
    2) My available balance is Rs 22 lakhs
    3) My book balance is Rs 29 lakhs ( i.e 51-22)

    The problem is that though I have parked additional amount of Rs 22 lakhs and my future interest is on BB (Rs 29 lakhs) but my drawing power still remains Rs 51 lalkhs. Now my understanding of Drawing Power is pending amount which is calculated on amortisation basis irrespective of prepayments/ surplus cash.

    (a) What is the significance of this drawing power amount?
    (b) If I prepay the BB of Rs 29 lakhs today, my BB become 0- does it mean I can close the account by an application and get my property papers back? But please note that my drawing power/ outstanding principle still remains Rs 51 lakhs- even I make BB zero- what is the significance? What does it mean? I still have to pay this drawing power back i.e Rs 29 lakhs+ Rs 51 lakhs- sounds absurd but please help in resolving this query


  4. Rohit says:

    Dear Sir,

    My Available Balance is getting reduced every month by 5k or 6k without any disbursal.

    My total HL (Maxgain) sanction amount was 2045000 on 31st March 2015. Total disbursed amount is 1648515 on 31st March 2015. Hence available balance should be 396485 (2045000-1648515).

    Please find below the status of Available Balance:

    On 31st March 2015, Available Balance was 396485.
    On 30th April 2015, Available Balance was 389157.
    On 31st May 2015, Available Balance is 384062.

    Every month my available balance is getting reduced by 5000 or 6000 without any disbursal.

    I am paying Full EMI (22164) from starting.

    Can you please help me understand the reason for the same.

    Thanks in advance.

  5. Arijit says:

    Dear Sir,
    I have availed a construction linked disbursement of SBI Max Gain home loan . Sanctioned amount is Rs 30,00,000/- and presently disbursed amount is Rs 23,78,676/- . I have been paying full EMI since the first instalment without any pre_EMI. Presently the loan is under disbursement

    The account statement is as follows.
    Book Balance -17,25,552.00
    Available Balance 11,17,548.00
    Limit 28,43,100.00
    Uncleared balance 0.00
    Drawing Power 28,43,100.00

    Pl let me know how much Principal have I repaid and how much is accumulated in my account.


    Dr A Sen

  6. Hi

    Can you please explain what is the drawing power, limit ,book balance, available balance and outstanding balance with an example for both in partial disbursement of loan and full disbursement of loan.


  7. ashalanshu says:

    Dear Arpit, if possible to you, please mail your account statement from day one to my personal mail id. I can not comment with out getting into your account statement.



  8. arpittolani says:

    Can someone help me regarding this,

    My current Home loan account shows below

    Limit 27,50,000.00
    Drawing Power 28,76,352.00
    Outstanding Amount 27,06,037.00

    I took home loan of 27.5 lacs & started prepayment. As per the above logic, My actual due is Drawing Power, but thn what is Outstanding Amount ?

    IIRC, I have done prepayment of 40k so far in 6 months. I am paying my all EMI’s on time, none is dishonoured so far.

    Thanks in Advance.

  9. Dear prakash, here I’m trying to answer your queries.

    1. the available balance of 599708.95 Rs. is the usrplus balance as on date.

    2. No there is nothing smoky in your home loan.

    3. Yes, you should pay for your car from the Max Gain Account amount.

    4. Who said you can not claim tax benefit on 2 or more homes? You can very much claim tax benefit on both homes. Please read prev. queries & answeres here in the forum to understand this.



  10. Pingback: SBI Max Gain: Some FAQs | Ideas for Wealth
  11. Dear Mithun, yes 45K amount is already repaid by you till date.



    1. Prakash Dinde says:

      Dear Sir

      Here is my latest status (as on 25 Aug 2013) of my maxgain account. I have few queries. Request you to please help me on it.

      Loan amount: 25, 18, 465
      First EMI: Sept 2009
      Current EMI: 30, 000
      Description: SBI H L MAXGAIN AUG12
      Book Balance: -15,90,024.25
      Available Balance: 5,99,708.75
      Limit: 21,89,733.00
      Uncleared balance: 0.00
      Drawing Power: 21,89,733.00
      Rate of Interest (% p.a.): 9.95%
      Lien Amount: 0.00

      1. In these years, i have many time parked the surplus amount and withdraw it wheneber required. in this process, I have lost the track of how much surplus i have in my account. Is the avl. bal. of 5, 99, 708 full surplus amount or is it a combination of surplus amt + the EMI i have paid until now?

      2. Does anything look smoky in the health of my loan account?

      Now my short term goal is to buy a car (BTW I have sold my santro last month for 1 lakh) and my long term goal is to buy a second house which I will rent out. The second house is mainly from retirement perspective.

      3. Let’s say I go for a car of Rs. 5-6 lakhs and I take a loan for 5 year the rate of interest will be 14-15%. Is it not a better idea to withdraw the amount from my maxgain account which I had paid as EMI until now instead of taking a fresh loan? In this case the rate of interest will be 9.75% and not 14-15%?

      4. Let’s say I go for second house for which I need to arrange 10Lakh as self-contribution. Is it a good idea to withdraw the amount from my maxgain account which I had paid as EMI until now? I can’t claim income tax benefit from my second house but I can claim income tax benefit from my first loan. So ideally I should keep alive my first loan and close second loan as soon as possible. Am I thinking in right direction or am I missing something?

      Please advice.

  12. Dear Mithun, as you have started paying your routine EMIs & the loan is quite old, the principal reduction is already taking place. That’s why your drawing power is 28.04L Rs. which is your as on date actual loan balance.



    1. Mithun Patil says:

      Thank you Ashal for your quick response. does that mean that I have paid 2850000 – 28,04,038 = 45962 is the principal amount ?

  13. Dear Mithun, how many months old is your loan?



    1. Mithun Patil says:

      First disbursement of amount 23,51,475 was released from bank on 21st Oct 2011.

  14. Credexpert says:

    Dear Mr. Patil,

    The Available Balance is the amount that you can withdraw any time.

    Book Balance is the current outstanding amount net of any principal prepayment you may have made and this is the amount on which the bank would charge interest.

    Limit and drawing power both are the same at any point of time. This is the maximum amount up to which you can draw and would be the addition of the book balance and the available balance.


    1. Mithun Patil says:

      Thank you for your reply.
      My Limit and Drawing Power is 28,04,038.00. If I am not wrong then it should be 28,50,000 because sanctioned loan amount is 28.5 lacs.

    2. khatrihasnain says:

      Will the drawing power reduce every month.
      If yes, then it will also decrease the available balance.
      Then effectively you end up paying EMI and reduction in the Drawing power through available balance…
      please reply

      1. ashalanshu says:

        Dear Khatri, the reduction in drawing power ‘ll be there. Available balance ‘ll not change. As it’s your surplus amount. Where is the problem?



        1. jayant says:

          hi ashalanshu

          I took loan of 1900000.(1 Apr)
          my limit and drawing power was 19L.
          I put surplus amount of 270124/- during Apr.
          My emi will start from May.
          My guess was only interest amount will be deducted from my available balance of 270124/- on 30 Apr.
          but it deducted interest and part payment of 17595/- from available balance.
          I did not ask for part payment.
          now my limit and dp is 1882405/-
          my available bal is 238796/-
          now if full emi is added in available bal then also it will not be same as i deposited.

          please advise.

          1. ashalanshu says:

            Dear Jayant, you like it or not but SBI’s software has some glitches to operate in 1st month of loan in many cases. You should contact your loan serving branch to get the reversal of wrongly debited amount deom Drawing Power.



        2. pavanx says:

          Hi Ashal, If drawing power reduces, available balance has to reduce by same amount. It is like that much money paid to the back and cannot be withdrawn. The bank seals it and reduces the drawing power which is nothing but outstanding loan amount. Isnt it?

    3. himanshujovi says:


      So does it mean that the entire money under available balance can be withdrawn at any point of time. My HL is 95% disbursed so the money I can see under available balance will be the amount , the bank should be readily available to pay me out ?

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