Why money gets deducted from my SBI MaxGain Account ?

POSTED BY sikinder ON November 27, 2013 6:47 pm COMMENTS (11)

Hello Sir,

I have a query regarding my maxgain account. I had taken a home loan ( term loan )of 1500000(15 Lakhs) from SBI in 2009 and I pay EMI of 14,965. In the month of May 2013, I converted the term loan in to maxgain to make use of overdraft facility.  On October 4 2013, I deposited  Rs 4000 to my maxgain account. When I checked my account online on October 22 2013, my  account showed following details .

Book Balance                    -14,01,844,00

Available Balance             3,382.00

Limit                                      14,05,226.00

Drawing Power                                 14,05,226.00.

Rate of Interest                10.05%

My question is I had deposited 4000 in my account instead of 4000, available balance showed only 3382. (I have not withdrawn any amount)

On November  19 2013 these are the details.

Book Balance                    -13,98,906,00

Available Balance             3,334.00

Limit                                      14,02,240.00

Drawing Power                                 14,02,240.00

Rate of Interest                10.25%

Every month money is getting deducted from my available balance. Can you please clarify why my money is getting deducted.


Sikinder S

11 replies on this article “Why money gets deducted from my SBI MaxGain Account ?”

  1. Siva says:

    My Available balance also automatically reduced by 45K when interest amount posted by bank in my account (on that day). Why my available balance reducing and it’s my additional amount paid in the Max gain account right. Pls give me clear explanation.
    Note: I am paying principal and Interest by automatically every month ( GIRO method). What is happening my Available balance reducing?

    1. Jagoinvestor says:

      The question is not clear.. please give numbers

  2. Ingit Malviya says:

    I am facing same issue , each month I deposit some amount in my OD , last when I deposited available balance was 5500 now it’s 2100, my max loan is fully disbursed, where my money is going, Ashal it will be great help if u can explain

    1. Anuradha Singh says:

      Hello Ingit, You will have to ask this to SBI directly. We won’t be able to help you with this query.

      Thank You

  3. Viren Phansalkar says:

    Oh ok. Thanks Ashal.
    As always, you are more than helpful and patient with all our queries.

    Thanks & Regards
    Viren Phansalkar

  4. ashalanshu says:

    Dear Viren, Sikinder was confusing for reductuion in available balance due to deduction of interest on last day of the month. He was in the impression that interest should be adjusted on the EMI date itself just like normal home loan. I clarified the working of Max Gain to him and now he is satisfied.



  5. Viren Phansalkar says:

    Hello Ashal,

    I wish to know the solution to Sikinder’s query i.e. why his balance keeps on reducing.

    Thanks & Regards
    Viren Phansalkar

  6. ashalanshu says:

    Dear Viren, can you elaborate your query? In a normal home loan, the interest is adjusted on the EMI date itself but in Max Gain, being an overdrafdt account, the interest is debited on the last day of the month. Hence many people do not understand this thing properly and think that home loan account is not working fine.



  7. Viren Phansalkar says:

    Hello Ashal/Sikinder,

    Can you please elaborate solution.
    Is this problem due to the fact that in case of OD account, the interest is charged from the 1st of every month and the EMI gets deducted on specific dates like 5th, 10th or something.

    Thanks & Regards
    Viren Phansalkar

  8. ashalanshu says:

    Dear Sikinder, I hope that after our personal interaction this query is over now.



  9. Credexpert says:

    Dear Sikinder,

    If the loan is partly disbursed, then the available balance will be the sum of undisbursed amount plus parked surplus, if any. In case the loan is fully disbursed, then it will be only the parked surplus amount, if any which is available to withdraw.

    Please demand a loan amortization schedule from your loan serving branch & compare the available balance reduction with this.


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