What is Part Period Interest in SBI MAXGAIN Insurance account ?

POSTED BY ashishcyrus ON December 13, 2013 8:19 pm COMMENTS (9)


I have a max gain loan account with SBI  since Feb 2013 where in i have an insurance account (namely MAXGAIN SURAKSHA) which shows the following details

Limit: 54000

Drawing Power: 18,033

Outstanding Amount: 23,577

Rate of Interest: 10.5

and then its followed by monthly deductions ranging from 80 Rs to 200 Rs. So what i want to know is what exactly is this? I assumed that 54000 insurance formed a part of OD loan and the interest should have been deducted during EMI deduction so why is this separate? am i paying anything extra? This month i got a message saying that 792 rs will be deducted on this account. What does it mean? Can i transfer surplus funds in this account as well and how much do i need to put it to close this monthly payments? moreover please clarify what is drawing power and outstanding amount?



9 replies on this article “What is Part Period Interest in SBI MAXGAIN Insurance account ?”

  1. Dr P S Dhami says:

    Hi can anyone help me to explain about drawing power?
    I have taken a loan for which Insurance amount was also taken for my house?
    on this out standing amount is given as Rs 25554/ . How it is calculated For Maxigain Surakha limit is Rs. 266030 and drawing power is Rs. 65554?

    1. Sorry we are not sure on this

  2. ashalanshu says:

    Dear Ashish, parking merely part prem. amount ‘ll save you interest outgo. For exact prem. quote please contact SBI General.



  3. ashalanshu says:

    Dear Ashishcyrus, as of now I’m out of India. It ‘ll be an ISD call for you. In case you want to discuss personally, please ask dear Manish for my personal mail id. As per forum policy, I can not provide my mail id directly. 🙂

    Yes, by putting 54K, you can close the insurance account today.



    1. ashishcyrus says:

      Ok!! So atleast I’m clear that I can close it by putting in 54 k. Since you said that premium amount is dependent on age, loan term and loan amount , I’d like to know what it would be in my case and for how many years:

      My Details
      Loan term:15 years
      Loan amount: 30 lakhs inclusive of 54K insurance

      Parking just the premium amount for the current year instead of 54k will reduce the interest outgoing right?

  4. ashishcyrus says:

    Thanks Ashal!! So If i put in 54 k today , this account will be closed?

    Can i have your number to get more clarity?

  5. ashalanshu says:

    Dear Ashish, till final disbursal is not done from insurance account towards policy prem. payment, this account ‘ll remain live. Post final disbursal, this account ‘ll be closed and the disbursed amount ‘ll become the part of your regular loan account.

    Prem. amount is dependent of your age, loan amount, loan term.

    Please park the amount equal to your prem. amount to close the account.



  6. ashishcyrus says:

    Hi Ashal

    Thanks for the quick response. I know 54,000 Rs was disbursed for the insurance and the interest is being charged on this. Questions are:
    1. Can you please elaborate on how this insurance account works?
    2. How is the premium amount calculated and for what duration?
    3. How much do i need to park to close this completely?

  7. ashalanshu says:

    Dear Ashish, the interest is charged from you on the disbursed prem. amount for the policy. In case you want to save on this interest outgo, please park the prem. equal amount.

    Drawing Power = Your as on date actual loan outstanding amount.



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