6 replies on this article “SBI Maxgain drawing power amount is not matching”

1. nsabhyankar says:

   August 25, 2014 at 10:13 am

   1. You should go through the A\C statement for your MG A\C. Try to find a deposit entry which you don’t remember making.
   Ask at the bank about any entries that you don’t understand or have a doubt about.

   2. Even for my MG A\C the ROI is shown as 10.25%. My guess is that the lower ROI is only for new customers. Again, its better to confirm with the bank. No harm if we can get the ROI reduced! 🙂

   3. Did you go through and understand this part of my last answer?

   In other words, the equation “EMI – debit interest = principle” which you are using, will not hold.
   Instead, EMI = principle + debit interest + interest saved due to surplus.
   What you are doing is including the ‘interest saved due to surplus’ part in principle repaid. This is not correct.

   Assuming that you have a surplus, you will save on interest. However, that will not change the principle deducted.

   3. Since its SBI, I am assuming that the bank has not given you the amortization schedule. Try to get that from the bank as well. Otherwise, you can search on the net for a site or an Excel book which can do the job.
   One example is: http://www.atulnene.com/emicalc.html

   If you don’t have a surplus, the principle and interest components for your A\C should match with the amortization schedule. Verify if it does.

   Reply
2. jhonty says:

   August 22, 2014 at 11:42 pm

   Thankyou Nikhil for your kind help..

   I think there is some mistake done in surplus amt for which, as you suggested i am going to contact the SBI Branch.But still i dont get that I have my principal amount paid till date is Rs.70604,so that it should directly be cut from total loan amount of Rs2040000. Hence my outstanding principal loan amount should only be 2040000 – 70604 = Rs .1969396 . However my bank account shows me outstanding loan amount as Rs. 2010698 .That gap I’m not getting actually or I am misunderstanding still something ??

   Also present ROI is = 10.15 % but my account shows me 10.25% which means SBI takes extra interest from me. I feel something fishy there.

   Thanks,
   Kinjal

   Reply
3. nsabhyankar says:

   August 22, 2014 at 12:42 pm

   Dear Kinjal,

   You need to ask this at the bank:
   “When i have not put any surplus amount,why available balance shows :23979?”

   Prima facie, it looks like there is some surplus in the MaxGain account and that could be the reason behind the discrepancy.

   If you have a surplus in the MG account, you save on the interest amount. However, the saved amount does not go towards the principle. It just lies in the MG account and adds to the surplus amount.

   In other words, the equation “EMI – debit interest = principle” which you are using, will not hold.
   Instead, EMI = principle + debit interest + interest saved due to surplus.

   What you are doing is including the ‘interest saved due to surplus’ part in principle repaid. This is not correct.

   Of course, first you need to get a clarification about the surplus!

   Thanks
   Nikhil

   Reply
   1. JS says:

      July 28, 2021 at 2:19 pm

      why wouldn’t “EMI – debit interest = principle” hold?

      As I have extra funds in my account, a lower interest is being charged per month, right?

      Shouldn’t the balance amount from my EMI go towards principle, and reduce the DP?

      Reply
4. jhonty says:

   August 20, 2014 at 4:07 pm

   Do anybody has idea for my querry???

   Reply
5. jhonty says:

   August 12, 2014 at 11:16 am

   Looking for help for my query.

   Thanks
   Kinjal

   Reply

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