SBI Max Gain Loan Query

POSTED BY sudhir s ON February 24, 2013 9:11 pm COMMENTS (55)

Hi,

I have Taken SBI MaxGain loan of 20 lacs. Mine was ready to occupy flat. So my Full EMI – (Rs 19633/-) started from first month itself ie October 2012. 

This is my latest loan account info. 

Account Number: XXXXXX

Description:  SBI H L MAXGAIN AUG12

Name: XXXXXXX

Book Balance: -19,74,220.00

Available Balance: 4,686.00

Limit: 19,78,906.00

Uncleared Balance: 0.00

Drawing Poser: 19,78,906.00

Currency : INR

Rate Of Interst: 9.95%

Lien Amount:0.00

 

My question is, till now I have not parked/tranfered any amount in OD account except Rs 100 tranfered from SB account to OD account just to check fund transfer feature. . 

How come the Rs 4586  is credited in Availbale Balance section. . ? Any idea.. . 

55 replies on this article “SBI Max Gain Loan Query”

  1. Shivanand says:

    Hi Manish

    Greetings from Shivanand!

    I have taken SBI Maxgain housing loan for 33 lakhs for 20 years. Paying EMI of Rs.31,629.00.
    On 23rd May 2015, I made first partial payment (Rs.15 lakhs) from the loan amount sanctioned to developer.
    On 31st May 2015, I paid the first EMI of Rs.31,629.00 (for the full loan amount).
    Below is status as on today 11th Jan, 2017.

    Description SBI H L MAXGAIN OD (APR15)
    Book Balance -30,56,267.00
    Available Balance 1,55,981.00
    Limit 32,12,248.00
    Uncleared balance 0.00
    Drawing Power 32,12,248.00
    Currency INR
    Rate of Interest (% p.a.) 9.3%
    Lien Amount 0.00

    Could you please let me know in detail what all the possible ways and respective procedure if i wish to reduce the EMI.
    Basically i am not clear i need to know if keep certain lump sum amount in Maxgain OD account, will that be considered as partial payment towards principal OR is there other procedure to repay principal amount partially?

    I do have few choices as listed below but unable to take decisions, so need help of your expertise.
    1. I am member of a local Housing Co-op society, and paid sum of Rs.4,80,000/- in two installments so far since 2009. Development of the area is very slow and not sure of 3rd (final) installment before registration of the plot. I can surrender my membership and get back the respective amount (of course without interest as per agreement) paid and use it for repayment of Housing Loan’s principal amt.

    2. I do have PPF account maintained since Nov.2011. Paying Rs.1 lakh every year towards the same. As of now available balance is Rs.734769.00. Since the interest rate on PPF is coming down, am under delimma
    – if to continue PPF with minimum annual investment of Rs.500 and use Rs.1 lakh amount towards Housing loan principle instead of investing in PPF? OR
    – if to continue PPF with minimum annual investment of Rs.500 and withdraw partial amount from PPF (50% of 4th year balance from now => Rs.291982 ) and pay the the same towards Housing Loan’s principal amount and repeat it every year.

    Also read an article in a leading English daily news paper saying “SHIFT HOUSING LOAN TO MARGINAL COST OF LENDING RATE (MCLR) since MCLR Rates are down” to help reducing EMI, but i could not understand! Could you please explain the same also suggesting if this could be a best choice in reducing EMI in comparison with my above specified alternatives.

    Looking forward for your valuable suggestions.

    Thanks in advance.

  2. Aditya says:

    Hi Manish,

    I have opted for SBI Max Gain. My question –

    1. Whether i am eligible for Section 24: Income Tax Benefit on Interest on Home Loan ?
    The maximum tax deduction allowed under Section 24 of a self-occupied property is subject to a maximum limit of Rs. 2 Lakhs .
    Currently the property is in Under Construction stage.
    2. Tax certificate provided by SBI comprises of what all details ?

    Kindly suggest what all options are available to me for getting the Tax exemptions ? I have recently bought the first home, loan amount 24 Lakhs, property price-34 lakhs.

  3. Hi Manish,
    1. I have loan of 42 lacs from hdfc @9.7% interest which can be reduced to 9.4% by paying 5800 Rs conversion fee. Pls advice for ling term whether i should continue with hdfc or transfer loan to sbi normal @9.3% or sbimax gain @9.4% by paying around 25000rs including insurance.
    2. I have booked underconstruction property for which i need fresh loan of 30 lacs. Should I go for sbi normal home loan or maxgain. Is full emi from first disbursal a better option.
    3. In general if person has already 1st maxgain loan @9.4% then he should go for normal 2nd loan@9.3%.
    4. In my case for which loan maxgain is advisable 1st transfer loan or 2nd under construction property loan.
    Thanks in advance.

  4. Ashok says:

    1) can I withdraw the total amount from available balance(which includes interest accrued on surplus amount deposited) at any point Or am I
    entitled to withdraw only the surplus amount I deposit ?

    2) Assume my total tenure is 10yrs and i have added some surplus amount to my OD account which made my book balance zero at the end of 5th year.
    If the book balance is zero, ideally the EMI will not have any interest component. In that case, what happens to the EMIs that I pay from 6th year
    to 10th year (till account closure time)? what will be my available balance at the end of 10th year and can I withdraw
    total available balance on liquidation date and collect my registration papers?

    3) Am I still allowed to add surplus amount to the OD account though my book balance is zero? In this case, what happens to the interest accrued on
    surplus amount?

  5. Prasad says:

    Hi Manish,

    I have few queries on Maxgain loan –

    1) As in case of normal loan Principal reduced each month is -> EMI – Interest, but is this formula not applicable for maxgain ? I checked with Branch Manager and he said it is not. Wanted to confirm, because in my case it shows some difference ( around 2-3 thousands each months – since EMI started )

    2) I am depositing surplus amount every month, and it seems after few years my book balance will be zero or positive, in that case what should be done ? shall I approach bank to close the loan ? Do they entertain such requests without extra charge ? My branch seems not agree on this. As per him if you withdraw Available Balance it will increase your outstanding amount ? I really dont understand his logic.

    3) What is more beneficial – Keeping surplus in OD account or repaying loan after certain intervals (say every 6 months) ?

    4) Is there any senior and responsible authority in bank with whom all the queries and calculations can be discussed ? As I discussed with many of bank persons and each of them have different views.

    5) Does top up loan and home loan have different tenure and interest rates ?

    6) Is it not mandatory to banks to send the amortization schedule to customers on their residential address ? My Branch manager says not it is not, and if we send you have to pay for the courier charges.

    7) Can I change my home loan branch near to my home ( Again branch manager sir saying it is not allowed )

    Please reply ………

    1. Hi Pankaj

      I am not an expert on the topic, the article was written by another person as guest post. I suggest talk to SBI on this .

  6. Vinay says:

    Hi, I have a loan for 30 years with SBI under Maxgain scheme. I am planning to reduce the tenure of loan and asked SBI to reduce the loan tenure to 20 years, however it was declined stating that EMI/NMI ratio is fixed for 30 years and cannot be changed.
    The EMI for 20 years loan is 5K more than EMI for 30 years loan, hence I was planning to pay 5K more every month and go for reduced loan tenure. Now since the tenure cannot be changed by SBI, they suggest to keep putting extra money in Maxgain OD account to close loan early.
    I have two options now :
    1. To keep paying extra 5K amount in existing SBI Maxgain loan.
    2. To migrate this loan to some other bank, or close SBI loan and take fresh loan from a new bank for 20 years loan tenure, paying same EMI + 5K.

    So, in short the query is that if I can pay increased EMI, which option is better : pay extra amount in existing SBI maxgain every month, or go for new loan with reduced tenure ( from 30 years to 20 years)

    1. Hi Vinay

      This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that

      Manish

      1. vinay21verma says:

        Actually I think I complicated the query. In simplest way, the query should be like this.
        In case one has extra amount to pay every month, what should one do for maximum benefit :
        1. Keep paying extra amount with EMI each month, this would eventually lead to early closure of loan.
        2. Go for reduced tenure of loan. As one can pay more EMI, it makes sense to go for shorter tenure loan.

        1. Both are same things ..

          When you increase your EMI, your tenure will anyways come down .

  7. Manish says:

    Hi Ashal,

    I am an NRI & have taken a Housing loan of Rs40 lac for 20 years under SBI Max gain.My Emi will start in July 2016 untill then I will be paying interest on amount disbursed to builder.I have parked Rs 14 lac in my OD account & intend to increase it to Rs20 lac by June 2016 which I wont require in future.My que is whether I should adjust this amount against my loan or reduce the tenure or else keep the amount inatact & keep on increasing additional funds in OD account.Pl advice so as to save the maximum interest.

    Thanks Manish

  8. Srinivasa says:

    Hi,

    It’s agreed that parking excess fund will reduce the interest outflow, but that will increase the tax outflow. Is this beneficial considering the income tax benefits? Ideally is their any limit for keeping surplus in OD, so that we can take the benefit in both places.

    Would really appreciate if some one can guide me here

    Thanks,
    Srini

  9. DeepakVarma says:

    Hi ,

    Thanks for enlightening us on Max Gain loan.
    Have a query.

    I have taken MaxGain from SBI – want to know if every thing in the loan is calculated as per process and please advise if some thing is going wrong, which needs correction .
    I have planned to pay Full EMI from the beginning .- loan taken for construction
    Currently they have disbursed only 9,57,628 out of the sanctioned amount 40,00,000.
    I have paid my first EMI on Oct 10th which is 35,000.

    This is the current split up .

    Book Balance = -9,29,535
    Available Balance = 30,70,465
    Limit =40,00,000
    Uncleared Balance=0.00
    Drawing power =40,00,000
    Lien Amount =0.00
    Currency =INR
    Interest Rate =9.40%

    Please advise ,
    with Regards ,
    Deepak

  10. archanpagedar says:

    Dear All,

    I would like to know that, how I can get the provisional home loan interest certificate for the current financial year for SBI Maxgain home loan account.

    Thanks.
    Archan Pagedar

    1. You can login to your online account and get it . or get it from your local branch

  11. darsaanvi says:

    Hello,

    I have a max gain loan account with SBI.
    I am currently charges at 10.2% interest rate, however the prevailing interest rate for home loan is approx 9.75%.
    Now when I asked the SBI manager for reasons as why such big gap in my home loan interest rate and existing rate. He suggested me to pay a one-time fee (Amount equivalent to 0.5% of my existing Principal loan amount balance) so that going forward the interest rate on my home loan changes as per the changing interest rates.

    I wish to know if this is valid way to charge customers? As Max gain loan interest rate by itself is supposed to be +-0.25% of prevailing interest rates.

    Thanks.

    1. Hi dpp

      This is very specific query which you should follow up with the concerned authority only. We wont be able to comment on that

      Manish

  12. ashish says:

    hi,
    Whenever I login into my home loan account, I can see 2 accounts .One is OD account (Max gain ,possibly)
    But if I want to transfer some amount into max gain , can I transfer directly into my loan account number?
    are they linked with each other?
    or do I need to make separate transaction?
    Please give some information regarding .

    Thanks,
    Ashish.

    1. vijay says:

      they are not linked you can add OD HL account as payee and transfer Money once added.

  13. sjain says:

    Hello Ashalanshu,
    I have taken home loan from SBI details is below
    Account Number XXXX
    Description SBI H L MAXGAIN OD (OCT13)
    Name Mr. XXX
    Book Balance -42,01,284.00
    Available Balance 1,91,995.00
    Limit 43,93,279.00
    Uncleared balance 0.00
    Drawing Power 43,93,279.00
    Currency INR
    Rate of Interest (% p.a.) 10.35%

    I see every month my available balance is reducing from my parked amount.
    Available Balance on 10/3/15 was 2,25,173
    I deposited 10,000 on 30/3/15.
    SO my available balance should be more than 2,35173 but it was approx 2K less.
    My Available Balance on 10/4/14 was 2,33014.00
    After debiting 35,705.00 as interest on 30/4/15 now available balance is 1,91,995.00 while it should be 197309.00
    I am not sure how this calculation is being done. Could you help me to understand what is wrong here.

    1. Hi Sudeep

      I suggest that you now take the RTI route. You can file the RTI and ask your queries to them. THey are bound to reply you on your queries.

      Its a bit long cut, but works well

      Manish

    2. Anu says:

      Hi,
      I have also taken SBI Max gain loan and my available balance is also getting reduced every month.
      On contacting the Bank, I am told that, as my EMI is scheduled for 15th of everymonth and monthly interest is debited on every month end 30 or 31st. So whatever available balance I have will be deducted accordingly.
      As per my understanding, this is not correct I should have the my surplus amount available as “Available Balance”., irrespective of the EMI date.
      So far I see the discrepency of 30-40 k in my OD account.

      Please advise if there is some deviation in my understanding or the action I need to take.
      Thanks in advance !
      Anu

  14. Sharad.Raut says:

    Hello Ashalanshu,
    I have taken Home loan from Other bank before four months.
    Can I transfer my loan to SBI Max gain ? If yes does I need to pay extra processing fee ?
    Please guide.
    Best Regards,
    Sharad Raut

  15. ashalanshu says:

    Dear Guru, your question is not confusing. Yes you can withdraw now 55K Rs. as per your own wish.

    thanks

    Ashal

    1. Ashok says:

      1) can I withdraw the total amount from available balance(which includes interest accrued on surplus amount deposited) at any point Or am I
      entitled to withdraw only the surplus amount I deposit ?

      2) Assume my total tenure is 10yrs and i have added some surplus amount to my OD account which made my book balance zero at the end of 5th year.
      If the book balance is zero, ideally the EMI will not have any interest component. In that case, what happens to the EMIs that I pay from 6th year
      to 10th year (till account closure time)? what will be my available balance at the end of 10th year and can I withdraw
      total available balance on liquidation date and collect my registration papers?

      3) Am I still allowed to add surplus amount to the OD account though my book balance is zero? In this case, what happens to the interest accrued on
      surplus amount?

      1. Ashok says:

        Hi Ashal,

        Can you clarify the following

        1) can I withdraw the total amount from available balance(which includes interest accrued on surplus amount deposited) at any point Or am I
        entitled to withdraw only the surplus amount I deposit ?

        2) Assume my total tenure is 10yrs and i have added some surplus amount to my OD account which made my book balance zero at the end of 5th year.
        If the book balance is zero, ideally the EMI will not have any interest component. In that case, what happens to the EMIs that I pay from 6th year
        to 10th year (till account closure time)? what will be my available balance at the end of 10th year and can I withdraw
        total available balance on liquidation date and collect my registration papers?

        3) Am I still allowed to add surplus amount to the OD account though my book balance is zero? In this case, what happens to the interest acrued on
        surplus amount?

        4) I will ensure that I always maintain surplus amount in my OD account. So can I opt for EMI deductions from my maxgain OD account iself ?

    2. Hi Mr. Ashal,
      1. I have loan of 42 lacs from hdfc @9.7% interest which can be reduced to 9.4% by paying 5800 Rs conversion fee. Pls advice for ling term whether i should continue with hdfc or transfer loan to sbi normal @9.3% or sbimax gain @9.4% by paying around 25000rs including insurance.
      2. I have booked underconstruction property for which i need fresh loan of 30 lacs. Should I go for sbi normal home loan or maxgain. Is full emi from first disbursal a better option.
      3. In general if person has already 1st maxgain loan @9.4% then he should go for normal 2nd loan@9.3%.
      4. In my case for which loan maxgain is advisable 1st transfer loan or 2nd under construction property loan.
      Thanks in advance.

  16. Guruprasad says:

    Hello,

    I have a quick query here!

    Consider I’ve parked some surplus amount(ex. 50k) in my MG account, in return to that the INTEREST RATE(ex. 5k) will be discounted from my regular EMI’s interest component and added to my parked surplus amount(right ???).

    Considering this, can I withdraw 55k in total??? as my parked amount will 55k(50k-my deposit+5k-interest discount I got)

    Please let me know if I’ve put my question in a confusing way! I know it is 🙂

    Thanks,
    Guru

  17. ashalanshu says:

    Dear Msmurali, Yes, you can avail composite loan under Max Gain. Please contact the SB account branch and they ‘ll help you out.

    thanks

    Ashal

  18. msmurali says:

    Add to my above query, Already I am having SBI SB account, can i use the same account to avail the SBI Max Gain?

  19. msmurali says:

    Hi Ashal,

    I am planning to purchase a land and construct a house. And planning to go for Composite Loan. whether SBI max gain applicable for composite loan?

    Whether can i approach any SBI branches to know the process of this loan?

    Please clarify.

  20. ashalanshu says:

    Dear Memukul, as you are repaying back, your Drawing Power ‘ll come down. As simple as that.

    thanks

    Ashal

  21. memukul says:

    Dear Ashal,

    One quick question: When the sanctioned amount is 20L, why is the “Drawing Power” or “Limit” is less than 20L. I also have a Max Gain account, and see the same case.

    Thanks for your help in advance.
    Mukul

  22. Dear Sudhir, Yes is the answer.

    thanks

    Ashal

  23. sudhir s says:

    Hi Ashal,

    As usual Rs 19,633 ( my monthly EMI ) was debited from my salary account and credited to my MaxGain account. This time I made sure to park good amount in Max gain account through out the month. AT the end of the month ( last day) Rs 15,744 amount was debited as Debit Interest rather than 19,633!!

    Does this mean I saved around 4K just because I parked few bucks in my account?

  24. Pingback: SBI Max Gain: Some FAQs | Ideas for Wealth
  25. Dear Sudhir, relax. Your Max Gain is working fine. From your EMi of 19K Rs. the interest part is also lying there as available balance. This Interest ‘ll be adjusted only on 31st march as per the surplus maintain on day to day basis by you in MG acct.

    As simple as that.

    Thanks

    Ashal

  26. sudhir s says:

    Ashal,
    I am totally confused with volatile available balance data . .

    Previous account info I pasted was taken on 1st of March. Find the latest account info( 13th March)

    My updated account info :
    Account Number: XXXXXX
    Description: SBI H L MAXGAIN AUG12
    Name: XXXXXXX
    Book Balance: -19,44,694.00
    Available Balance: 31966.00
    Limit: 19,76,661.00
    Uncleared Balance: 0.00
    Drawing Poser: 19,76,661.00
    Currency : INR
    Rate Of Interst: 9.95%
    Lien Amount:0.00

    Nothing has changed in this period except one EMI (19633)on 10th March. and I withdrew 2000 Rs from OD account. So available balance should be 14006.00. How come It is showing 31966 Rs?

  27. Dear Sudhir, yes the available balance at any given point of time is the money you can withdraw.

    Thanks

    Ashal

  28. sudhir s says:

    Hi Ashul,
    I deposited around 27K to OD account on 1st of March.

    My updated account info :
    Account Number: XXXXXX
    Description: SBI H L MAXGAIN AUG12
    Name: XXXXXXX
    Book Balance: -19,60,655.00
    Available Balance: 16,006.00
    Limit: 19,76,661.00
    Uncleared Balance: 0.00
    Drawing Poser: 19,76,661.00
    Currency : INR
    Rate Of Interst: 9.95%
    Lien Amount:0.00

    Now the available balance shows only 16k. .Does this mean around 11k is debited as interest? Now I can only withdraw 16K ?

  29. Dear Sudhir, please deposit 15K to overcome the past interest of sept month. 🙂 🙂

    Now as it’s MG, please try to keep more & more surplus amount into it to save interest outgo.

    Thanks

    Ashal

  30. sudhir s says:

    Rs 4686 is also present in my MG account right? So I can deposit roughly 11K as of now. .

  31. Dear Sudhir, I’m in the same boat. I’m running a MG loan for myself from SBI. 🙂 🙂

    Thanks

    Ashal

  32. sudhir s says:

    Thanks Ashal .. .How did you get to know that there is something smoky in my loan account info. . I was under the impression that I got some money credited in available balance 🙂

  33. Dear Sudhir, it means, you were charged interest for 10 days in Sept which was never paid by you. So My advice is to deposit 15K Rs. immediately into your MG account to overcome this problem of lower available balance.

    Thanks

    Ashal

  34. sudhir s says:

    Date mentioned on SBI check is 21/09/2012

  35. sudhir s says:

    Hi Ashal,
    Thanks for your information. I will give you check date once I reach home. I remember I have taken xerox copy of the check .
    Then this is common issue for everyone. Ideally EMI starts ( most of the time next month) after the house registration and check dispersal.
    Bank should educate and help us to avoid this type of extra burden. .

  36. Dear Sudhir, please mention the date of that SBI cheque. The answer to your query lies there. In all probability, the cheque was prepared some where between 15-20th September 2012. So your interest calculation starts from that day itself. So in fact you have not paid your interest for the month of September. This interest was added up into your book balance. So as on date, your DP is lower than your book balance (after adjustment of interest for the month of Feb 2013).

    Please deposit at least 15-20000 Rs. urgently to solve this issue.

    Thanks

    Ashal

  37. sudhir s says:

    small change to my above answer. . House registration and check hand over happened on same day ie 25th Sep 2013. . ..

  38. sudhir s says:

    Hi Ashal,
    Thanks for the reply. .

    To be more clear. .My loan got sanctioned in August 2012. But my house registration happened on 20th of September ( Even this date was decided by Bank). So Bank gave 20 lac amount check on 25 th September to Builder. . My EMI started on 10th of October 2013. .

  39. Dear Sudhir, actually you are short of money. Why? From your original query & follow up reply, I can see that you had not paid the interest for the month of Sept 2012 & the same has increased your book balance. so instead of having at least Interest equalling surplus amount you are short of money.

    What’s the solution then? Simple please park some surplus amount into your loan account immediately as you are already paying interest on interest. Please don’t go by my words. Please check your account statement on 1st March to see the impact of interest deduction & book balance then.

    Thanks

    Ashal

  40. sudhir s says:

    Ashal,
    My loan amount Rs 20 lac was disbursed on Aug 2012. .From Oct-12 , EMI started. .

  41. Dear Sudhir, when was your loan amount disbursed?

    Thanks

    Ashal

    1. Dinesh says:

      Hi Ashal,
      What account type to select while transferring money online from other banks savings account to SBI MAXGAIN loan account ?
      Savings or Current ??

      1. Dear Dinesh, it’s current account.

        thanks

        Ashal

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