Repayment benefits in Pre-EMI stage in SBI Max Gain?

POSTED BY Rahul Babar ON January 3, 2013 10:14 am COMMENTS (10)

Hi All,

I have recently taken a home loan of 30L from SBI. Since 95% of construction work is already completed, first disbursement was 28,05,200/-.

When OD account was linked to my SB account in SBI, it showed 30L balance in OD account and in 2-3 days, first disbursement of 28,05,200/- happened. When asked in SBI branch, they told me that I can start the repayment if I want to but I won’t be able to withdraw surplus amount in this period.

My question, what exact benefit, I will get if I park some surplus amount in OD account in Pre-EMI stage. Also will I be able to withdraw same surplus amount after complete disbursement is done?

Appreciate your valuable suggestions.

Thanks,

Rahul Babar

10 replies on this article “Repayment benefits in Pre-EMI stage in SBI Max Gain?”

  1. Credexpert says:

    Dear Sachin,

    In interest of maintaining a healthy credit life, it is advisable that you approach the bank and get direct clarifications about the specifics.

    Regards,
    Credexpert

  2. Rahul Babar says:

    Answering my own queries, in case anybody is looking for the similar queries.

    1. In pre-emi stage, how they will debit the interest? Will they debit it from my SB account or from surplus amount I have added in OD account? As per my observation for last month, they debited (interest of 4-5 days) it from surplus amount. Please confirm.

    It will be debited from the Saving account. For this bank collects few blank cheques from you.

    2. Will this interest be debited on last day of each month only? Are there any other charges/amount we pay in pre-emi stage?

    Interest will be (calculated) debited on last day of each month from OD account. But it will be debited from savings account by cheque clearance.

    3. At the time of documentation/agreement, bank took six cheques (without amount) from me other than processing fee & insurance cheques? What are these cheques for?

    For pre-emi interest payments.

    4. Is there any option to go for full emi from pre-emi after first disbursement is already done?

    Yes, you need to fill one form (SI form) & submit in the bank. They will return the cheques they took for pre-emi.

    Thanks,
    Rahul Babar

  3. Rahul Babar says:

    Hi Sachin,

    I think you should be able to utilize the benefits until the last penny is paid. Better confirm from the branch.

    Thanks,
    Rahul Babar

  4. Sachin says:

    great info.
    I have more questions on this,
    i have reduced my loan by paying extra every month and now left with balance loan of 305000 Rs. in sbi max gain account. I want to pay them all…but want to continue benifits of sbi max gain account. Meaning….in case i need fund i should able to use it.
    1) can i pay all and still use benifits ?
    2) if i pay 300000 rs. and keep 5000 unpaid can account be continued ?
    please help with your suggestions.
    thank you
    regards, Sachin

  5. Sachin says:

    great info.
    I have more questions on this,
    i have reduce my loan by paying extra every month and now left with balance loan of 305000 Rs. in sbi max gain account. I want to pay them all…but want to continue benifits of sbi max gain account. Meaning….in case i need fund i should able to use it.
    1) can i pay all and still use benifits ?
    2) if i pay 300000 rs. and keep 5000 unpaid can account be continued ?
    please help with your suggestions.
    thank you
    regards, Sachin

  6. Credexpert says:

    Dear Mr.Babar,

    During the PRE – EMI period, if you park your surplus funds in the account, your interest burden would come down to the extent your outstanding principal comes down. We would assume you can withdraw surplus amounts post the PRE – EMI period. Would suggest you reconfirm with the bank as that would be in the fine print of the agreement.

    We would recommend that you contact the bank and get clarifications on the additional 1st three questions. The answer to your last query is that PRE – EMI is charged until the period the entire loan amount is not disbursed. You will be able to pay the EMI after the entire loan amount is disbursed.

    Regards,
    Credexpert

  7. Rahul Babar says:

    Dear Ashal,

    Thanks for the valuable info.

    I have few more queries to ask.

    1. In pre-emi stage, how they will debit the interest? Will they debit it from my SB account or from surplus amount I have added in OD account? As per my observation for last month, they debited (interest of 4-5 days) it from surplus amount. Please confirm.

    2. Will this interest be debited on last day of each month only? Are there any other charges/amount we pay in pre-emi stage?

    3. At the time of documentation/agreement, bank took six cheques (without amount) from me other than processing fee & insurance cheques? What are these cheques for?

    4. Is there any option to go for full emi from pre-emi after first disbursement is already done?

    Thanks,
    Rahul Babar

  8. Dear Rahul, if you keep parking surplus, it ‘ll help you to bring down your interest outgo. yes till final disbursal is not made, you can withdraw your own money.

    For more info, please read following discussion in the forum.

    http://localhost/jagoforum2/how-to-maximize-the-gains-in-sbi-maxgain-homeloan-account/2635/#comment-20294

    Thanks

    Ashal

  9. Rahul Babar says:

    Hi Biswa,

    Thanks for the response.

    I have already transferred some surplus amount in loan OD account. As mentioned, the whole disbursement is not yet done.
    Also on 31st dec. they deducted interest of around 4000.

    I want to know whether paying such surplus amount will reduce actual interest getting debited in pre-emi stage?

    Thanks,
    Rahul Babar

  10. Biswa Singh says:

    As per my knowledge i dont think you can park surplus amount if you have opted for Pre-EMI. Also in Max Gain you can not park surplus amount unless and untill the whole amount is disbursed.

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