I have taken a home loan of Rs. 1800000 two years back from SBI under MaxGain home loan and Rs. 57000 for home insurance. My original EMI was Rs. 16810 per month. Now from last month onwards, I have increased the EMI amount to Rs. 21000 thinking that my home loan tenure will get reduce accordingly. The same is confirmed by SBI. My EMI deduction date is 10th of every month. But when I checked the loan account online, my Available Balance is increased by Rs. 4000. My main point to increase the EMI amount was to reduce the home loan tenure not to save the interest outgo. Please let me know if by increasing the EMI amount under SBI MaxGain home loan will reduce the tenure or not.?
Hi – Did anyone get clarification on this from SBI? When I checked with SBI Sakinaka branch (Andheri-Mumbai) I was told that there is no facility for Max Gain account to reduce principle portion or tenure if you are paying amount more than your EMI per month. It will default go to Available Balance and no benefit of reduced tenure. Is this true for others? I am planning to get it checked with CPC.
I am not sure of what they are claiming. Do you requested them to show the rule book? Please ask for the same and share with us for our better understanding.
Tarun-Please contact Bank Officials. They must reduce the tenure for the corresponding increase in EMI. Keeping the additional amount in available balance is wrong.
I requested many times to SBI to decrease the loan tenure but every time they told it is not possible
under Max Gain home loan scheme. Finally, I shifted my home loan to HDFC for 7 years tenure as opposed to 25 Years in SBI.