SBI Maxgain drawing power amount is not matching

POSTED BY jhonty ON August 11, 2014 1:24 pm COMMENTS (5)

Hi all,

I have gone through the detail descriptions of explanatiosn of SBI MAX GAIN account and its terminology  like drawing power ,book balance,available balance and will not ask for same again. I think if i’ve  understood the terminology rightly,i have further query regarding my max gain account as below:

I want to add surplus amount in Max gain so i get benifits of liquid amount and reduction in intrest. Hence,before adding this i want to thorough with my present working account which is as follow:

LOAN AMT 2040000
intrest at loan sanctioned (feb-13) 9.95%
intrest at loan sanctioned (july-14) 10.25%
First emi Mar-13
MY PAID EMI SUMMARY
Per month EMI 20300
Total month EMI paid                      17month
Total paid 345100
Intrest 274496
F Principal 70604
AS PER BANK ACCOUNT
A BOOK BALANCE -1986719 E-B
B AVAILABLE BALANCE 23979 SURPLUS AMOUNT AVAILABLE
C LIMIT 2010698 C  =  E
D UNCLEAR BALANCE 0
E DRAWING POWER 2010698 OUTSTANDING LOAN AMOUNT
As per my calculation
F Total Loan 2040000
G Principal paid 70604
H Drawing power 1969396
E-H Difference 41302

QUERY

I dont understand why there is a difference of 41,302?

When i have not put any surplus amount,why available balance shows :23979?

I have max gain suraskha account also. Is the calculation of that account is link with OD account anyway?

MAX  gain surakshs a/c show as follows:

MAX GAIN SURAKSHA
J LIMIT 49515
K DRAWING POWER 14518
L OUTSTANDING AMOUNT 21836
M C.T.YTD 732
N P.Y.YTD 1171

I dont understnad the terminology K to N in above for Suraksha account?

 

Thanks

Kinjal Dave

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

  1. nsabhyankar says:

    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.

  2. jhonty says:

    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

  3. nsabhyankar says:

    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

  4. jhonty says:

    Do anybody has idea for my querry???

  5. jhonty says:

    Looking for help for my query.

    Thanks
    Kinjal

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