Reagrding EMI of SBI Max Gain

POSTED BY Prakash Jena ON April 29, 2013 6:29 pm COMMENTS (15)

Hi Asal,

I have taken SBI H L MAXGAIN AUG12 in march 2013. I have taken Rs. 28,95,000 and for 20 years with 9.95% interest rate.

But SBI has asked me to pay Rs 28,898 and rounded to 29000 EMI per month. but when I checked with different home loan calculator, for the above amount and duration with 9.95% rate of interest, it is coming around Rs 27,842.

I am just wondering why they have increased almost Rs 2000 per month for EMI.

 Can you please help me understanding this EMI amount.




15 replies on this article “Reagrding EMI of SBI Max Gain”

  1. Dear Raghav, please do note, you have opted for full EMI so it ‘ll rwmain as it is. 🙂

    Regarding the surplus parking, you can do so if Transactions Rights are already active.



  2. Raghav V says:

    Thanks Ashal…

    a) But still dont you feel that until and unless full loan amount of 21,99,000 is disbursed then only its right on SBI’s side to charge 21,149 as EMI.

    b) And also let me know whether I shall take the gamble of depositing my surplus into MG_OD_acc as you shall see from my above message that full transaction rights are even enabled on my MG_ACC.So that if needed I shall withdraw them from MG.Hope SBI wont revert these granted rights on my MG account.

  3. Dear Raghav, full 21149 Rs. EMI ‘ll start from day one i.e. 10th June.

    The interest amount of 11K is meant for the days you used 80% loan amount in May.

    Moratorium means no payment of full EMI. Moratorium does not mean your interest payment has stopped or no liability is there for this interest. 🙂

    You did the right thing my parking those 11k meant for interest. Actually had you asked us earlier, we had advised you to park it even before 31st May.



  4. Raghav V says:

    Hi Ashal and other experts,

    My 80 p.c of cheque payment on sbi max gain home loan happened on 8th may 2013 and I registered my house on may 16th 2013.I have opted for emi from day one and for my home loan of 21,99,000 my emi comes to 21,149 at 9.95 ROI for 20 years tenure which starts from june 10th 2013.Kindly clarify me on the below:

    a) I have given SI to take 21,149 as emi to SBI from day one (0 moratorium period).But let me know whether my EMI will be charged as 21,149 eventhough SBI has disbursed only 17,59,200 (80 p.c of the loan amount)?? [Ideally 21,149 as emi should start only from the month where I do my Mortgage and SBI releases the other 20 p.c balance..correct me if I am wrong]

    b) In my maxgain OD account, on 31st may 2013 an interest was debited for 11, 509.00 and it reduced by available balance.(i thought its the interest from 8th may 2013 for 80p.c amount disbursed..but i have opted for zero moratorium period).Help me out here

    And also to restore back my available balance and book balance I pumped in 11, 510 to the MG-OD account an also to avoid more this right action from my end or I should withdraw the same from my OD account now??

    Also if you see below eventhough my full loan amount isnt disbursed yet I am able to transfer from my MG account too.

    Please find the below transaction snapshot for your reference:

    Account Details
    Account Number 000000xxxxxxxxxxx
    Name Mr. RAGHAV
    Book Balance -17,59,199.00
    Available Balance 4,39,801.00
    Limit 21,99,000.00
    Uncleared balance 0.00
    Drawing Power 21,99,000.00
    Currency INR
    Rate of Interest (% p.a.) 9.95%
    Lien Amount 0.00


    Last 10 Transactions in my MG_OD_ACC:

    Date (Value Date) Narration Ref. No. Debit Credit

    a) Debit:
    04-Jun-2013 (04-Jun-2013) TO TRANSFER
    INB test to sb frm mg II10440763 TRANSFER TO 330_SB_ACC Mr. RAGHAV 100.00

    b) credit: pumped in 11,510.00
    04-Jun-2013 (04-Jun-2013) BY TRANSFER
    INB raghav_debitInterest_cred II10440465 TRANSFER FROM 330_SB_ACC Mr. RAGHAV V 11,510.00

    c) credit:
    04-Jun-2013 (04-Jun-2013) BY TRANSFER
    INB test II10440415 TRANSFER FROM 330_SB_ACC Mr. RAGHAV V 100.00

    d) debit:
    31-May-2013 (31-May-2013) DEBIT INTEREST 11,509.00

    e) debit:
    08-May-2013 (08-May-2013) TO TRANSFER TRANSFER TO 3268xxxxx RACPC, CHENNAI 17,59,200.00

    Thanks for your help in advance..

  5. Dear Chandan, you mean reduction in term of your loan due to full EMI from day one?

    Yes, the loan term ‘ll come down automatically.



  6. Dear Chandan, No, the excess amount you are mentioning is not part of the EMI calculation. Please discuss the issue with SBI immediately.



    1. chandan blr says:

      I checked with RACPC,
      I had initially filled my application form (in home branch) asking for 10 month moratorium , the same was printed in arrangement letter – with emi 18070 .
      Now (after reading Ashal’s view) , I opted for full EMI on the day of signing arrangement letter.

      The the processing guy said that the changes will be considered ‘automatically’ by the system and appropriate reduction will be made in the number of EMI at the end – can I rely on his statement – or should talk to RACPC Manager – is my doubt now 🙂


  7. chandan blr says:

    Dear Ashal,
    My EMI will start on 5th June 2013 ( next month ) – I opted for full EMI ( no moratorium period )

    I think there will be some expenses ie registration/stamp papers ( for the excess amount 21K , I see ) – can that be possible ?

  8. Dear chandan, from which date your EMI ‘ll start? A moratorium period may be the reason of increased EMI. For excess ins. prem. please contact SBI RACPC in Banglore.



  9. chandan blr says:

    I have the following details on my SBI Maxgain – arragement letter

    Home Loan = 18,53,000 ( which includes 63,0000 insurance premium)
    interest = 9.95%
    EMI amount is 18,070/- for 240 months

    Note – when I went to fill insurance premium application , he said my premium will be 67,000/- ( split across 5 installment)

    I have payed about 2200/- (cheque) for processing fee and 150 cash for notary ( in Bangalore RACPC)

    By using EMI calculator – I see that for 18,070 EMI my total loan should have been 18,79,000.

    There is a difference of about 21K ( 18,79,000 – [18,53,000 +4000 excess of premiun])
    Which I am unable to figure out , please help me understand.

    Also can I negotiate/question an excess of 4000 for insurance premium (compared to what was given in arrangement letter)


  10. Prakash Jena says:

    Hi Asal,

    Thank you. My actual repayment period is coming down to 17 years 9 months instead of 20 years.

  11. Dear Prakash, so my reply is correct for both cases combinedly. A insurance policy + moratorium period of 6 months. In my personal opinion, if cashflow is not a big issue, please continue with 29K EMI as it ‘ll help you to pay out your loan early.

    Please use online loan calculators to know what ‘ll be your actual repayment period from May 2013 onwards for 29K EMI & loan amount of 2895000 Rs.



  12. Prakash Jena says:

    Thanks Asal and Raghav for answering my query.

    Yes, I have Rs 80K life insurance is added to my home loan Rs 28.95 lacs.

    I am in a discussion with bank (as they forced me to take this insurance) to cancel the life insurance. They have already deducted 16K for this year,Even if i loose 16K i am going to cancel it.

    And they have asked me to start EMI from AUGUST 2013 even i have taken from 28th Feb. I requested SBI, and my EMI start date is going to be from coming month i.e day after tomorrow (May 2013).

    Keeping in view of cancellation of my life insurance and starting EMI from May, is my monthly EMI will come down from 29K to Rs 27,842?

  13. Dear Prakash, had you purchased any life insurance linked with your loan? Please check the details in your loan agreement or contact loan serving branch to know the details. As per my calculations, there should be an additional loan amount of 1.1L Rs. for the single prem. of your insurance policy or there may be a moratorium period of around 24 months.



  14. Raghav V says:


    I believe you would have opted for a moratorium period.This period you need not pay your entire emi…may be interest.If you have opted for such type of period..your emi will be calculated for (20 years: 240 months – x mortarium period months) and hence you may find the increase

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