SBI Home Loan

POSTED BY Ansi ON June 6, 2012 3:18 pm COMMENTS (13)

I’ve taken a Home loan from SBI, bangalore on June 2009. Now my interest rate is 12.75% and my outstanding amount is 27 Lakhs. Now SBI has provided an offer where we need to pay 1% of outstanding ( appr 27,000 in my case) as a fee and get my interest lowered to 11%.
My sanctioned amount was Rs.3050000, hence I’m not eligible for Overdraft facility. I’m bit confused now. Should I pay 1% outstanding fee and get my interest to 11% or should I switch to some other nationalised bank.
Pls send me ur suggestions


13 replies on this article “SBI Home Loan”

  1. Hello, i’m jameet from kashmir. I do also have a need of home loan. i just want to know that if the land documents are of my mom’s name, and i’m the earning hand of my family. Can she able to apply for home loan by attaching my salary for the purpose of EMI?

    1. No , the land has to be in the name of the person applying for the home loan !

  2. George says:

    Dear Ashal,

    I had transferred my loan from IDBI to SBI (Maxgain Scheme). Can you explain the figures given below.

    11-Sep-2012 (11-Sep-2012) BY TRANSFER 1,000.00 (I transferred from my SB Account)
    11-Sep-2012 (11-Sep-2012) BULK POSTING 19,184.00 (EMI)
    31-Aug-2012 (31-Aug-2012) DEBIT INTEREST 3,455.00 (..?)
    30-Aug-2012 (30-Aug-2012) DR INT CREDIT 2,468.15 (..?)
    30-Aug-2012 (30-Aug-2012) DEBIT INTEREST 2,468.15 (..?)
    25-Aug-2012 (25-Aug-2012) TO TRANSFER 17,57,818.00 (Principal)

    I am facing problem in getting transanction rights, cheque book and debit card for my Maxgain account. The loan was processed at a branch different from my SB account branch. So the loan processing branch says that CIF is with different branch they can not process request for internet banking rights, debit card etc. Somehow I applied for changing the CIF to loan processing branch and they issued internet banking kit. They asked me to log in after 24 hours. I attempted the same but failed. Anyways again I have to check after 48hours (in case of SB account it is 48 Hours).

    My advice for those who are in the process of applying Maxgain, ensure that if you have a relation with SBI, process your loan through the same branch.

    1. Dear George, when did you got transfer your loan from IDBI to SBI?

      The 30th Aug. entries are, first wrong interest debt & & then credit of same interest.

      The 31st Aug interest debt entry is for the amount of loan utilized for 5-6 days if your loan was disbursed (to IDBI) on 25-26th Aug.



  3. sankalp chaturvedi says:

    Not as such,if that question is meant for me.I am planning to create another property in Australia as I am here on long term.

  4. sankalp chaturvedi says:

    Hi Sir,
    I have read your replies and I am looking for some advise on my home loan.I have taken a home loan of 3600000 for 25 years with SBI(Max Gain Account).My EMI is 33442 which I am paying every month.

    My simple question is I have created 10 lakh surplus as I am in Australia through Wipro and I want to pay it to SBI to reduce my EMI.Kindly advise how can I do that as I will be here for some time.My dad can submit a cheque to SBI but what other formalities are required.

    My intention here is to pay back 10 lakh which I will not be withdrawing back to reduce my EMI.My salary account is in HDFC Bank from which EMI is deducted every month.

    1. Ramesh says:

      Have you looked at the option of creating another asset for you?
      You should keep your own interests on a priority mode rather than the Bank’s, emotions aside.

    2. Dear Sankalp, as the product in question is Max Gain, you may just park those 10L Rs. surplus amount to SBI Max Gain account. Your interest outgo ‘ll come down immediately. Yes your EMI ‘ll remain same but the interest part of EMI ‘ll keep on accumulating in Max Gain after adjustment of actual interest to be paid for remaining loan amount. In this case the liquidity of those 10L Rs. ‘ll be there with you all the time & you can withdraw the amount as per your choice. If you need so.



  5. Ansi says:

    Thanx for the suggestion. I meant abt Max Gain Home loan only, I know its a big loss, but no use of worrying now. I’ve already linked my loan to Base PLR only. I moved to SBI coz its a govt bank and they will do not try any cheap tatics with customers. Any new person looking for bank loan will look for the current interest only, no one worries abt the interest rates changes in the subsequent years. For ex when I took the loan on June 2009, the SBI terms are 8% fixed for 1st yr, then floating interest from 2nd year onwards. The next yr it jumped to 10 % and finally now its 12.75%.
    My another friend took home loan from SBI on Aug 2009, for him terms were changed, 8% for 1st yr, 9 % for 2nd and 3 rd yr. Whoever applied later in 2009 got 8% fixed for 1st three years.
    I could see SBI is passing the benefits only to the new customers only,

    1. Dear Ansi, SBI is not alone to do so. Please be happy for the fact that SBI is offering you the rate reduction. By the way, please check again with SBI people for the reduction fee as many banks are charging around 0.5% of o/s loan amount + service tax on it.

      So here also you have a scope to save money if possible as per SBI guidelines.



      1. Prashant Pathak says:

        Dear Ashal Jauhari,

        I have seen many of your replies and advises. They are very good and clear.
        Thanks for your continuos help.

        I am having a simple question:

        If by mistake, the EMI is wrongly calculated by bank and deduction is happening at higher side, whether the customer can have any benefit as he will be paying higher EMI ? Because many a times I have seen people suggesting to have a higher EMI to get the loan closed early etc.
        What should be EMI of a SBI Maxgain scheme for amount of Rs.28 Lacs for 20 years at 11%? Are there any additional charges for SBI Maxgain scheme ?

        1. Dear Prashant, here is the answer for your query.

          The standard EMI for the given parameters is 28901.27 Rs. or you may round it to 28902 Rs. Now n case your EMI is say 30000 Rs. which is some 1800 Rs. more, the Loan ‘ll be over in 213 months instead of 240 months. That’s because of the higher than normal repayment in your EMI.

          In my personal opinion, please contact SBI immediately for rate reduction. After paying 1% conversion fee + service tax there on, you ‘ll get the interest rate reduced to 10%. Now keeping the same EMI of 30K in our example, the loan ‘ll be over in 182 months.



  6. Dear Ansi, swithcing your loan to a new banker may invite trouble & the fact that the new banker ‘ll also not provide a loan below 11 or 10.75%, it’s advisable to accept this rate reduction offer from SBI. Pay the due amount of 27K Rs. & you ‘ll get a huge relief in the form of loan term reduction.

    By over draft facility, if you meant for Max Gain home loan, sorry dear after sanctioning of your loan (& it’s already 3Y old after disbursal), you can change your loan type.

    By the way at the time of this rate reduction, also ask SBI to link the loan with base rate instead of PLR. This ‘ll help you immediately as & when SBI reduce the base rate.

    One last point – If your cash flow permits (as & when) increase your EMI a bit to pay off your loan early.



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