Dear Ashal,
First let me thank you and appreciate the efforts you take in clarifying various queries on the SBI MaxGain home loan. I learnt about your site today.
I have MaxGain loan for last 3+ years. I moved my Home loan from HSBC SmartHome Loan which is similar to MaxGain. One big difference I find in MaxGain is that the monthly interest is not calculated on the outstanding principle by adjusting the ‘extra’ principal from the EMI amount month-on-month. As I keep surplus money in my OD a/c, the every month interest varies and is debited by SBI on the last day of the calendar month by DEBIT INTEREST. My EMI date is 15th of the month.
SBI adjusts the surplus money I park in the account for calcluating interest but not the benefit in Extra Principal that results out of reduced Interest. Could you clarify if SBI adjusts the Principal amount every month and subtracts the extra Principal amount before it calculates the next month interest. I used to get this benefit in HSBC’s SmartHome loan, on daily outstanding which is also followed in SBI. But I don’t find SBI giving me the benefit of reducing the outstanding principal by extra principal amount from the EMI (due to lower monthly INTEREST, as result of surplus money in my OD a/c)
I can send snapshot of my DP Limit, Debit interest, EMI, if you want..
Thanks in advance,
Ilango