SBI MAX GAIN

POSTED BY suman ON June 6, 2012 8:49 pm COMMENTS (13)

Hi,
Thank you for the information on different home loan products.
After reading the different treads i changed my mind to obtain HL from SBI.
Can you please clear me the following doubts.
1. Is there any difference in interest rate between MAX GAIN and regular home loan products?
2. MY branch manager is not so happy to open a MAX GAIN home loan, quoiting there are some technical problem in handling the product.
3. Can we bargain in SBI to reduce the processing fees and some thing like that?
4. I have a credit score of 780(I have no existing loan) , will it be helpful to negotiate the terms, If please provide me the subject on which i can start negotiating.
5. My manager is charging ~20000 for MOD(Memorandum Of Document), can you help me in understanding MOD.
6. They quoted ~7000 for my loan insurance of 30L for a term of 5YRS, which should be renewed after 5yrs till closure of loan. Instead of obtaining the insurance from SBI can i obtain a Term Insurance for 1Cr and allocate 30% to Loan Account? Personally i have very less insurance(Rs.5L only, But i have no dependents, as my spouse is also working, no kids)
In SBI MAX GAIN can we prepay the loan? If possible, is there any limit for prepayment?

Thanks in advance for you patience and time.

13 replies on this article “SBI MAX GAIN”

  1. Niranjan says:

    Is the intrest credited on the amount lodged by us in the SBI Maxgain account exempt from tax.

    1. Dear Niranjan, you ‘ll not earn any interest from the surplus amount parked in that max gain account but this sur plus amount ‘ll be treated as repayment of home loan & accordingly the interest outgo for loan repayment ‘ll be lower. Thus you ‘ll save on interest outgo.

      Thanks

      ashal

      1. nkmemon says:

        Hi Ashal,

        While enquired about the loan products, one of the HDFC reperesentative told me the cons of the SBI-MaxGain to push HDFC loan. He told me its fine upto the time you are dumping your lumpsums amounts to the MaxGain a/c. With Interest-rate increases by approx 0.7 % once you with draw any amount from the surplus in your maxGain a/c. How true is this? I would appreciate if you can details any of the pros-and-cons about this SBI-MaxGain Product.

        Thanks,
        nkmemon

        1. Dear NKMenon, let me understand your query with an example – that HDFC Executive means –
          If I withdraw say 1L Rs. fro my available corpus of 5L Rs. the ROI which is 11% at present ‘ll go to 11.7%. Is it what HDFC person is telling you?

          Please confirm to me. Actually it’s a blatant lie nothing else. I’m using Max Gain for myself for more than past 2Ys.

          Thanks

          Ashal

  2. vishal says:

    sir i have following questions.

    1.i have applied for maxgain loan of 30 lakh today.i am having sbi saving account in mumbai but they said my maxgain account will be at other branch but in mumbai only.is there any problem in future for fund transfers in these 2 accounts?

    2.is it posssible to close maxgain account by prepayment before the tenure,or i have to continue it till the tenure completes?

    3.my wife is not a co-borrower today as she is not earning now,but in future she will earn,so is it helpful to add my wife as a co-applicant and what are the pros & cons of doing so?

  3. suman says:

    Hi Ashal,

    thank you for sending your valuable time and replying back my queries.

    5. My manager is charging ~20000 for MOD(Memorandum Of Document), can you help me in understanding MOD. Please confirm from your Branch manager is it for processing fee & mortgage fee etc. or is he pocketing the amount? I smell a RAT here if the amount is to be paid in cash.

    Manager told me it should be paid to registration department and it will be covered in loan.
    This is mandatory fee to be paid.

  4. suman says:

    Hi Ashal,

    Thank you for quick reply.

    This house will be used for self occupation.

    1. Dear Suman, as the house ‘ll be for self consumption purpose, are you going for joint ownership & joint loan for tax benefit or not?

      Please confirm.

      Thanks

      Ashal

      1. suman says:

        Hi Ashal,

        We are going for Joint ownership and EMI’s will be paid by both of us in 50:50 ratio, So all the interest part will be covered for tax exemption for both of us.

        1. Dear Suman, as the property in question is a joint ownership property, please go for joint loan also to get the income tax benefit. If the loan is taken only by your wife & you are not in picture, you can’t claim tax benefit from the loan for yourself. Now I’m trying to answer your basic queries –

          Can you please clear me the following doubts.
          1. Is there any difference in interest rate between MAX GAIN and regular home loan products? No
          2. MY branch manager is not so happy to open a MAX GAIN home loan, quoiting there are some technical problem in handling the product. There are no such issues & a lot of people are using this Max Gain product with out any trouble.
          3. Can we bargain in SBI to reduce the processing fees and some thing like that? Seems unlikely.
          4. I have a credit score of 780(I have no existing loan) , will it be helpful to negotiate the terms, If please provide me the subject on which i can start negotiating. Any score above 750 is a good one but as of now there is no such things that interest rate ‘ll be different on the basis of score.
          5. My manager is charging ~20000 for MOD(Memorandum Of Document), can you help me in understanding MOD. Please confirm from your Branch manager is it for processing fee & mortgage fee etc. or is he pocketing the amount? I smell a RAT here if the amount is to be paid in cash.
          6. They quoted ~7000 for my loan insurance of 30L for a term of 5YRS, which should be renewed after 5yrs till closure of loan. Instead of obtaining the insurance from SBI can i obtain a Term Insurance for 1Cr and allocate 30% to Loan Account? Personally i have very less insurance(Rs.5L only, But i have no dependents, as my spouse is also working, no kids). Is it mortgage term cover or general insurance for the property you are talking about, please clarify.

          In SBI MAX GAIN can we prepay the loan? If possible, is there any limit for prepayment? By parking the surplus amount in Max Gain OD account you are reducing the interest burden so where is the need to prepay early.

          1. Would you advise me to go ahead for single borrower loan or shall i add my self as co borrower? Already discussed in detail. For taxation benefit for joint loan.

          2. Now i am planning to take loan in my wife name, and she has eligibility of 32L. Please read point 1 above for joint loan.

          3. I am planing to opt another loan after 3 yrs to develop a joint property with my father and brother, so now i am planning to take loan on my wife name. This future loan should not be considered now as it may or may not happen down the line after 3-4 years. Focus on the job on hand now.

          4. The current project completion is expected on Oct 13. Make sure that the project is ready in actual by then.

          Thanks

          Ashal

  5. Dear Suman, is it a single borrower loan or joint one? Please clarify.

    Thanks

    Ashal

    1. suman says:

      Hi Ashal,

      Thank you for quick reply. As of now it is single borrower loan.

      1. Would you advise me to go ahead for single borrower loan or shall i add my self as co borrower?

      2. Now i am planning to take loan in my wife name, and she has eligibility of 32L.

      3. I am planing to opt another loan after 3 yrs to develop a joint property with my father and brother, so now i am planning to take loan on my wife name.

      4. The current project completion is expected on Oct 13.

      Please advice me the better way, to go on joint loan or single borrower loan?

      1. Dear Suman, this wife house ‘ll be for self consumption or rental purpose? Why I’m asking so, because my dear friend, in case the house is for self consumption, the interest liability ‘ll be above 3L Rs. in the initial years but as the property ‘ll be single owner (your wife) the tax benefit ‘ll be limited to just 1.5L Rs.

        So in my opinion go for a joint property + joint loan to get maximum tax benefit.

        Please post your comments on the above & then we ‘ll move forward.

        Thanks

        Ashal

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