All about SBI MaxGain Home Loan Scheme features and benefits

You have a home loan of Rs.1 Cr and suddenly you receive the cash of Rs.30 lakh and want to reduce your home loan liability by depositing it. However, the chances are that you may need this Rs.30 lakh after one year. In this case, how to optimize this Rs.30 lakh? The regular loans will not provide you to get back this Rs.30 lakh. The answer is SBI MaxGain Home Loan Scheme.

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SBI MaxGain Home Loan 1

Before proceeding further, let us understand few basic concepts of banking.

What do you mean by Over Draft (OD) Facility?

Banks provide such type of loans against the collateral (security against a loan) like property, FDs or any other assets. It is exactly like your credit card limit. You pay interest only on the withdrawn amount or used amount, but not on the overall limit. However, here in this case there is no feature called grace period or interest rate free period. Interest charging start immediately you withdraw from OD. Let us say bank sanctioned you OD of Rs.30 lakh. The next day you withdraw Rs.5 lakh for some emergency then the interest will be payable only on Rs.5 lakh but not on a whole sanctioned Rs.30 lakh. Now, after a few days if you deposit Rs.2 lakh to OD account, then the overall usage is Rs.3 lakh (Rs.5 lakh withdrawn-Rs. 2 lakh deposited=Rs. 3 lakh). Therefore, interest will be only on Rs.3 lakh. You can withdraw the amount up to maximum sanctioned limit, i.e. in this case, up to Rs.30 lakh.

Usually, such types of loans are very handy when you frequently receive some surplus. Because, in normal loans once you pay the excess surplus towards a loan, then your EMI will go down. However, you cannot get back the cash immediately. The reason is, you have to apply for a top-up loan. Once it sanctioned and amount released, then only you can get the cash. But in case of ODs, you can withdraw it immediately and use it for emergencies.

Hence, the liquidity of surplus amount you have is more when it comes to ODs than other types of loans.

SBI MaxGain Home Loan and OD

SBI MaxGain Home Loan is nothing but the OD sanctioned to you. In this case, the collateral is your home loan. So whenever you have a surplus then you deposit to this MaxGain account. This deposit is treated as repayment towards the outstanding loan amount. Interest on outstanding for that period reduced. Hence, the interest will be charged only on the Actual outstanding Principal=Outstanding Principal-Surplus parked.

Hence, this gives you more flexibility to utilize your surplus cash and along with that, reducing the interest on your home loan. Below is the typical SBI Home Loan Account Statement.

SBI Maxgain Home Loans

Now let us discuss few wordings, which you came across from the above statement.

What do you mean by Drawing Power?

Drawing power is nothing but your outstanding balance. It is not the actual original loan amount sanctioned. However, it is the current outstanding. Hence, this is the actual outstanding principal balance. In the above image, Drawing Power is Rs.35, 00,500.

What do you mean by Available Balance?

This is the un-disbursed amount (in the case of Construction Linked Payment or CLP)+Any Parked Surplus+Accrued Interest. In the above the image, it is Rs.1, 00,000.

What do you mean by Book Balance?

Book Balance is nothing but the difference of Drawing Power and Available Balance. Hence, in the above case the drawing power is Rs.35, 00,500 and Available Balance is Rs.1, 00,000. Therefore, the Book Balance is Rs.34, 00,500. This will be shown in negative.

Please note below points about SBI MaxGain Home Loan.

  • Your EMI and tenure of the loan will never change during the course of a loan tenure. It is fixed whether you park your surplus or not. Let us say currently outstanding is Rs.10, 00,000 and EMI is Rs.30, 000. You parked surplus amount of around Rs.5, 00,000 to MaxGain Account. So the Book Balance will be Rs.5, 00,000. Interest will be calculated on Rs.5, 00,000. SBI collects Rs.30, 000 EMI from you. You may all know that EMI includes Principal Part and Interest Part. However, this EMI includes the principal part towards Rs.10, 00,000+Interest part on Rs.5, 00,000 Book Balance+Surplus interest part. Surplus interest part arises because EMI is constant. Principal payment kept constant. However, the interest was calculated on Book Balance of Rs.5, 00,000 but not on the initial outstanding of Rs.10, 00,000. Therefore, this surplus interest part is kept in an available balance. This you can withdraw it at any point of time.
  • As I said above the interest rate is calculated on the account balance on the daily base. However, it is debited on the monthly base.
  • Any surplus amount you deposit into Max Gain Account is not treated as principal loan repayment. Hence, such deposit not considered for tax saving purpose under Sec.80C. In addition, the interest saved under parking the surplus will not be eligible for tax deduction under Sec.24 B of Income Tax Act.
  • This loan does not charge anything extra. Therefore, it is treated as a typical home loan of SBI.
  • The available balance amount can be used for any purpose using the ATM Card they provide.
  • You can use the available balance amount for paying any type of utility bills, credit card payments, online shopping or register ECS for your investments like Mutual Fund. However, an available balance is the limit for these transactions.
  • If you use your Max Gain ATM card in other bank ATMs then they charge you for the first usage itself. Because this is Over Draft facility. Hence, no free transactions available for other banks ATM usage.

Special care in case of under Construction Home Loan of SBI Max Gain

In the case of under construction property, banks usually disburse the loan amount in part. You have the option either to pay only the interest part of the disbursed loan amount or the actual EMI (which will be considered based on the sanctioned principal amount).

In the case of SBI Max Gain you can opt both the options and also park the surplus money. However, you cannot withdraw the surplus you deposited.

Advantages of SBI Max Gain Home Loan

Liquidity-As I said initially when you are expecting some surplus cash, then you can park that surplus amount into max gain account and save more. Along with that, you can withdraw it at any point of time exactly like your savings account.

Interest Saving-When you park any additional surplus, and then it automatically generates the saving by way of interest saved. This you can utilize for other purposes.

One point for all your savings account transactions-You can route all your savings account transactions to max gain account. By doing this, you earn more than your savings account. It is easy to monitor your transactions. In addition, by using the net banking facility you can schedule your EMI of this home loan from Max Gain Account to savings account easily in advance.

Better Returns than FDs-During the falling interest rate, by keeping your surplus in such product will actually earn you more. Along with that, it is more liquid than Bank FDs. Whereas, in the case of Bank FDs, if you premature the FDS then there will be a penalty.

Disadvantages of SBI Max Gain Home Loan

Complicated to understand-Few feel it complicated to understand. Because I know many, who having this loan never benefited.

Lesser Tax Benefit-Let us say you planned to save more by claiming interest payment under Sec.24 B of IT Act. But due to depositing excess cash into this amount, the interest on this excess amount will not be part of deduction for Sec.24 B. Hence, you may end up in less tax benefit.

Hope this inform cleared many of your doubts.

Note-We have deactivated commenting option for this blog post. However, if you have any doubts related to this article, you can raise this in BasuNivesh Forum.

804 Responses

  1. Hi Basavaraj,
    After max gain activation, say i have about -4L balance in the account. If i deposit this 4L in this account, would my EMI continue by default or stop? In case it continues, the balance would keep growing positive, would i earn interest on the surplus?
    And if i want to close my loan and stop paying EMI what is the procedure?

    1. Debayan-Yes, once you deposit the money in available balance equal to your loan outstanding, EMI will continue as usual. Because you not opted for loan closure. However, the EMI amount will be get deposited back to available balance. So there will not be any earning. Only you can save is interest on Rs.4 lakh outstanding amount. If you want to close the loan, then you have to inform the bank to adjust it towards principal and close the loan.

  2. Hi Basavaraj,

    I want to take Home Loan of 21L in SBI. I am confused that which one is better.
    1) Pradhan Mantry Awas Yojna Home loan subsidy of 2.2L.
    2) Maxgain Home Loan.

    Please help me to choose one from above schemes.

  3. Hi Mr. Basavaraj,

    First of all thanks a lot for sharing such valuable information time and again. I have gained good amount of understanding regarding Max gain. In fact I have already opted for it.

    I have purchased an under construction property and have taken loan (Maxgain) of 32 lacs. Partial disbursement of 15 lacs have been done to the builder and my I have opted for full EMI from 1st month onwards (i.e. 30,500 as EMI is with insurance amount). I just need clarification on the following things,

    1. Is the daily interest calculated on the book balance amount? The first EMI I deposited has reduced the book balance by that amount and hence does it mean that my principal amount is also getting reduced? Where will it reflect?

    2. Is there any tax benefit options before the house possession or will I have to wait till the possession? Am I on the losing side as I purchased under construction property?

    3. When RBI cuts the lending rate, like other banks, do I have to approach SBI to reduce my loan interest?I was told by the bank employee that bank will reduce it automatically as per the applicable rules at that time.

    With best regards,

    1. Nair-1) It is calculated on daily available balance. You principal amount will reduced as per the original amortization table.
      2) There is no tax benefit during pre-construction period.
      3) They do it automatically based on the policy change they adopt.

      1. Thanks a lot Mr. Basavaraj. Just one last query,

        Is there any provision of getting the amortization schedule online or do I need to approach the bank for the same?

  4. Hi Basavaraj,

    I have a question pertaining to interest calculation for SBI max gain.

    Disbursement of 30 Lacs was done on 11th May and processing fee was charged on 12th May, I calculated that the interest is correctly calculated for 21 days for 30Lacs and for 20 days on Rs.11450 which comes out to be Rs. 16457 at interest rate of 9.5%, however, I am unable to calculate it further as the figures are not matching.

    I am just trying to understand that as the EMI is scheduled to be deducted on 10th of every month, is SBI charging interest on Interest Amount (which is getting debited on last day of every month) until the EMI gets deducted.

    I am providing below statement.

    31-Jul-16 DR Interest 24199
    12-Jul-16 CR EMI 31711
    30-Jun-16 DR Interest 23494
    13-Jun-16 CR EMI 31711
    31-May-16 DR Interest 16457
    12-May-16 DR processing fee 11450
    11-May-16 DR transfer 3000000

    Please provide your valueable inputs or let me know if you have any questions for me.

    Thanks in Advance.

    Rishi Makker

      1. The loan is not completely disbursed yet, will they still provide amortization schedule?

        If yes, then whom to ask for it? SBI Branch or RACPC?

  5. I have a salary acct and a transferred home loan acct in SBI. How can I avail the SBI Max gain facility?

      1. No. Its just a normal home loan. Its a taken over loan from axis bank by SBI.

  6. Ref. SBI Maxgain home loan account

    I have tried to park some amount (Rs. 7000) from Saving account to OD account. After transfer, i could see only Rs. 6750 added in my OD account. Is there any pre payment charges incorporated?

  7. Hello,

    I have taken home loan from SBI maxgain with insurance cover.

    The flat is still under construction.

    When i transfer say 50K to OD account , not whole amount is getting transferred. Why ?

    Also when i will be able to withdraw amount from OD? Is there any disadvantages of parking money in OD before possession?

    Thanks in advance.

    1. Girish-Why the whole amount is not transferred? The disadvantage of transferring the amount to OD before property possession is that you are not eligible to withdraw up to the period of the possession.

      1. Hello Basavaraj,

        Thanks for reply.

        The part of 50 K say 35 K will be transferred to OD while other 15K is getting transferred to Loan Account.

        Why it is like this?

          1. I don’t the reason why it is being transferred in that way. Need your views on same.

  8. Hi Basavaraj,

    Thank you for spending your time to answer lot of questions.

    I just wanted to clarify few things with you (SBI managers are not able to answer 🙂 ).

    1. EMI amount moved from SB account to maxgain OD account, then my available balance increased by EMI amount. at the end of the month interest is calculated on (loan outstanding – available balance) and debited and also principal is reduced as per schedule. is my assumption correct?

    2. whatever we are saving on interest (say actual interest component of the month is 13000, but due to some amount parked, it calculated as 10000) , so the remaining 3000 is not going to be reduced in loan outstanding. correct?

    3. where this 3000 go? if i am not wrong available balance is increased by 3k. correct?

    4. over a period of time available balance increased by multiple 3ks (if my parking amount is same)

    5. The whole advantage of maxgain is saving on interest, but not reducing outstanding by saved interest. correct?

    1. ChandraPrakash-1) Your EMI will not move to OD account (available balance). But it is directly split to interest due and principal due and adjusted as PAID.
      2) Yes, you are understanding is correct. It will be credited in your available balance.
      3) I already answered.
      4) Yes. But not same amount every month. Because as the loan tenure progress principal reduces. Hence, the interest component also get reduced right?
      5) YES.

  9. Dear Mr. Basavaraj,

    I have taken SBI Maxgain homeloan for 27.5 lacs in Apr 2016. After that over a period of 2 months I deposited additional 2.65 lacs ((around a month ago) to take benefit of saving interest. But, at present I see below summary in my account:
    Book Balance -24,91,709.30
    Available Balance 2,64,964.70
    Limit 27,56,674.00
    Uncleared balance 0
    Drawing Power 27,56,674.00
    Currency INR
    Rate of Interest (% p.a.) 9.50%
    Lien Amount 0

    Now, my query is even though I have deposited 2,65,000/- (around a month ago), why “Available Balance” (which should be additional amount parked + accrued interest savings) is less than 2.65 lacs? I was expecting it to grow by some amount as per additional interest saved. Also, originally my principal outstanding loan amount (“Drawing Power” as per SBI Maxgain definition) was 27,50,000/-, now that has increased to 27,56,674/-. I am not able to understand what am I benefitting here? Or is it something wrong here?

  10. HBA =House building Advance means housing loan where its interest is deducted from total Income.

      1. No I have taken loan from State Bank of India so I am having MAXGAIN account.. I have not take any loan from our employer.

        1. Ambarish-I am hearing that term first time. Leave it. If you withdraw the cash deposited in OD account, then your interest payment be there in EMI. This will be eligible for income tax deduction.

  11. Dear Mr.Basavaraj Tonagatti,
    I am having MAXGAIN account as I have take SBI Home loan. I have deposited more than pending amount as I have surplus amount in my own other saving account. So next month my EMI was cut and no interest was charged and my EMI was added in my balance amount of MAXGAIN account. I withdraw surplus money from my MAX gain account( equivalent to EMI after every month). My financial consultant said that once you have deposited money in MAXGAIN account then your HBA loan is over. You can not take interest tax benefit even though you withdraw money from MAXGAIN account. Now I want to withdraw surplus amount from my SBI account and want the maximum advantage of tax on HBA interest. In FY 15-16, I have paid only Rs.25000/- as HBA interest. Aprox. Rs. 12 can be withdrawn from my max gain account as this amount I have deposited in 2015. My question is as under:
    If I withdraw surplus money from my MAXGAIN account after that, can I consider the HBA interest of FY2016-2017 in AY 2017-2018? ( it will be more than Rs.25000/- of FY 2015-16) My consultant says, NO…. as once you have deposited money in Maxgain account then purpose of HBA loan is over so tax rebate can NOT be claimed under HBA
    interest. Please advice me….

  12. Hi Basav,

    I was analyzing the SBI Maxgain online account in interval of 15 days and realized that SBI has transferred Rs 15K + from my Available Balance towards Limit/Drawing power, while the book balance remains the same.

    Why will they do that without my approval….and if they do it this way without customers consent, it defeats the whole objective of parking surplus funds in the maxgain account which could be used for personal contingency / need at any given point of time.

    Please let me know your views. Thanks!


  13. Hi,
    I have taken sbi maxgain home loan on under construction property on Feb-2015 about 18 months back. Possession will still take some time. I have some surplus amount for now I don’t need this but I may need these amount anytime.
    My Question is can I park these amount on my Maxigain account and whenever I need this I can withdraw from account?


  14. Hi!!
    I am about to take Home loan of 25 lakhs from SBI and they are saying that bveing woman I will be able to get ROI as 9.35% . I have a saving account having 14 lakhs in SBI bank onlyMy queries are as follows
    1) . Should I go for SBI Max gain or normal HOme Loan. Does ROI same for both?
    2) Can I park my 14 lakhs in SBI MAX gain. What benefit will I get?
    3) What all terms and conditions should i check with Bank in black and white before opting finally for the loan?

    1. Preeti-1) Interest rate will be same. But opt MaxGain only if you are expecting some lump sum cash during tenure of loan.
      2) It depends on you of when you need and for what purpose such huge cash you just keeping in savings account. Hence, it is better you decide. If you park, then you will save the interest on home loan to the equal portion of how much you deposit in OD account.
      3) ALL TERMS they have written 🙂

    2. How much will I be able to save from above Home loan over and above the 1.5 lakhs slab?

  15. so nice of u basavraj. my CA ask for year end balance, say on 31 march 2016. how do i calculate that. current statement showing only drawingpower and balance ( balance is in negative).

  16. I have taken a Home Loan under MaxGain. I already had a SB account with SBI prior to the loan. Now the HL Account is showing as OD account ( I think its normal as MaxGain is OD). Where should i deposit the surplus amount to reduce my interest in HL.

    Is it SB account or i should transfer to MaxGain (OD Account)

  17. I have a homeloan under maxi gain . I have deposited an amount equal to the loan i have taken from sbi under this scheme The bank official said do not close the account of this home loan as this money what i repaid is in the current account and can user it whenever I need . So for the last 6 months ever since I have deposited an equal amount in the home loan account they have stopped the EMi but the home loan account is still not closed . Now I need 6 lak Rs and the bank says I can take 6 lakh from that and meet my needs . He also said the moment I withdraw 6 lakh my Emi will start . Is it better to keep the maxi loan alive for few more yrs or is it better to close the loan and get back my original papers . Will there be any financial loss when I close the loan . And closing the loan only requires a letter from me saying that I have deposited an equal amount of outstanding in the Maxi loan account pl advise

  18. Dear Mr.Basavaraj .. Nice to read all comments made on queiries .. really helpful . Plz send your mail id to be in touch with you..Waiting ..Basavaraj Kusabi

  19. Hi Basavaraj ,
    Due to error “Repayment Schedule is Invalid” i am unable to transfer money from maxi gain account to loan account, my payment is due for tommarow, does SBI will deduct payement for loan from maxi gain account ? as my loan account does not have money but maxi gain account has.

  20. Thanks for the informative article. I took SBI maxgain HL for 45 Lacs in 2012. Now I want to prepay about 10 lacs. My main purpose of prepaying is to reduce the EMI which is currently 42,000/-. Is it possible? Can you please elaborate on the prepayment process?

    1. Tarun-Yes, you can. You have to inform the bank to adjust towards principal. But in my view, instead of reducing EMI, try to reduce tenure. You will be out of loan early.

  21. Hi,

    I have maxgain home loan account @ 10.15 interest rate. After some time SBI was decreased interest rate from 10.15 to 9.45 in two slots. How can i know Pending EMIs in SBI maxgain account?


  22. Hello Basavaraj,

    I just want to know , if it is good to close an existing MAX gain HL account ? I have surplus amount & i can pay it against outstanding loan amount . Will it be good/advisable to close this MAX gain account ?

  23. Hello Basavaraj,

    I am very much confused on how SBI charges interest for under construction property.

    I have SBI Maxgain Home loan of 30 lakhs. Out of which Rs.13,95000 has been disbursed to builder on 10 June,2016. I have opted for full EMI option. As per my understanding I should not be charged with additional interest as I have opted for full EMI. But on 30th June,2016, SBI has charged interest of Rs.7500. Also SBI has debited full emi amount of Rs.28000 from my ICICI account on 5th July,2016 and credited full emi amount in SBI Maxgain account in Available balance. Is this the correct procedure followed by SBI?
    Why does SBI charged interest on the disbursed amount eventhough I have opted for Full EMI?
    Why does SBI debited full emi amount when it has already charged interest for me?
    My Drawing power has been constant at Rs.30,00,000 eventhough full emi has been debited. Why there is no change in Drawing power eventhough full emi has been debited?

    Could you please help me to understand the procedure of Maxgain for under construction property when opted for Full Emi option?

    Thanks in advance for your help,

      1. Thanks for your reply. Could you please answer the below questions also.
        Why does SBI debited full EMI amount from my ICICI bank account and credited full emi amount in SBI Maxgain account under Available Balance?
        My Drawing power has been constant at Rs.30,00,000 eventhough full emi has been debited. Why there is no change in Drawing power eventhough full emi has been debited?

  24. Hello Basavaraj,
    I have SBI Max gain HL. Can you please clarify my doubts:

    1) If my Available Balance = Drawing Limit then Still I need to pay Monthly EMI.
    2) As my Interest component is Zero due too AB = DL if ECS continue then where those EMI will be adjusted, either in FL or In AB.
    3) If AB > DL then the difference of extra parked money will earn interest ??
    4) If AB = DL && My EMI continues and it is adjusted in my AB, can I used that money to repay next month EMI.?
    5) It’s advisable to have AB = DL and continue paying EMI’s ??

    AB = Available Balance
    DL = Drawing Limit

    1. 1) Yes. 2) It is keep back into AB. 3) It will not. 4) Because loan tenure is fixed and EMI will go on. 5) It depends on many things, like keeping home loan for tax saving purpose and for what purpose you kept money AB.

      1. Thanks a Lot for your Reply….
        Have few more doubts
        1) If AB= DL, & EMI continues to be adjusted in AB then DL will never be reduced.In normal Case DL gets adjusted with principal component of EMI.The EMI I ll be paying has no interest component, so dies it not mean that It needs to be adjusted in DL?
        2) Do we have limit or timeframe for making AB equal to DL in OD account.
        3) As I need to pay EMI monthly even after parking Complete Loan Among in OD account, Can I used same 30K Everytime for EMI.
        Day1 Savings Account balance = 35K
        Day 15 ECS will debit 30K from Savings Account and post it to OD account , so DL =AB + 30K
        Day 16 I will xfer back 30K to my Savings Account so that AB = DL, in this case I ll make sure that as I am not earning any interest I will just rotate 30K , remaining amount which I was supposed to pay as monthly installment in invest in some other places where at least ll have Interest earned.
        I can make it 30K rotate every month ?
        If my savings account balance is less then EMI then from where the difference amount is made available for EMI ?


          1. Thank you again…
            I am again confused now ..
            If AB = DL then Interest will be Zero , then the EMI i will be paying will not have any Interest Component. As per your response (1st one) it says interest will be adjusted in AB.

            1. Mayank-They get the full regular EMI as per amortization table set earlier (where they not considered your AB amount at all). Such interest part will be parked in AB.

              1. Hi Basavraj,
                For above #3 question mentioned by Mayank for rotating 30K each month from OD Savings account example, I dont see OD account in source account for withdrawal in online transfer option (transfer between SBI Own accounts) page. I just see only saving account radio button in source and target has both OD and saving accounts.

                Am I missing anything on this? I have already submitted possession letter to bank.

                Please comment.

                1. Chetan-I am not aware about their online portal set up. Because I am never the customer of SBI. Hence, if you found it is valid, then I accept it. Thanks for updating this 🙂

                2. Hi Chetan,

                  You need to collect a letter from called “Mortgage Letter” from your RACPC branch and submit it at you Home branch, this letter is required for your home branch to activate Netbanking privileges to the OD account. Unit then you can only transfer Surplus money into OD, not take out. This is only possible after the full disbursement of loan has happened.

                  So, you cannot take out money from Available Balance of your OD until Full disbursement and Mortgage process is complete. This is based on the information I received from various sources.

  25. Hi Basavaraj,

    Can you please help me with below mentioned doubt.

    I am having Max Gain account with SBI and regularly paying my EMI also I have added surplus amount whenever I have to my OD account which is now around 350000 other than EMI.

    When I compared my OD account to last month it has details as mentioned below. Please note for July they have deducted Interest and I also paid EMI for July:-

    Book Balance = -3140188
    Available Balance = 500188
    Limit = 3640376
    Drawing Power = 3640376
    Uncleared Balance = 0
    Rate Of Interest = 9.45%

    Book Balance = -3132757.75
    Available Balance = 505397.25
    Limit = 3638155
    Drawing Power = 3638155
    Uncleared Balance = 0
    Rate Of Interest = 9.45%

    Now my question is :-
    1) Why Drawing power/Limit is getting reduced by 2221 rs ?
    2) Do you think is there any mismatch in above details ?

    Thanks In advance for your help.


  26. Hi Basavaraj

    I have taken max gain women home loan of 2175000.00 in Dec. 2015 with the rate of 9.5 (floating). As my information, SBI has reduced interest rate up to 9.35 for women. But it not affected my HL rate.
    Now when i inquired in bank for the reason, they told me – new interest rate is under MCLR, and my loan is under BSLR.
    my question is what is this MCLR and BSLR ?
    Further if i m not wrong, for BSLR too, bank have reduced interest rate up to 9.40 for women, then why bank is not reducing my interest rate ?
    what is the procedure to have minimum interest rate ?
    If bank refused to do that, at which authority we have to complain ?

    Thanks in advance……..

      1. Hi Ashok & Basavaraj Tonagatti,

        I faced same issue with SBI max gain women home loan i took in april 2016 with 9.5% and it will not changed for 1 yr that i got info from Bank.
        They told for 1 yr interest rate will not change means it will fix after 1 yr it will floating.

          1. Hi Basavaraj,

            I read complete agreement nothing is written like that.
            I checked with RACPC and head branch they are saying for mclr based home loan 1 year interest rate will fix its applicable to all they said.
            really i want to know about this rule.

  27. Sir,

    I have SBI maxgain homeloan and paying full EMI since begining, I will not need entire sanctioned loan amount.
    Home Loan Sanctioned Amount : 15,50,500
    Loan disbursed : 13,91,481
    EMI: 15,500

    This is what I see in my statement. The debit interest amount inconsistent and either reducing or increasing every month
    (Rs. 9618, 9556, 8896, 9460, 9099, 9348)
    I think debit interest amount should be same or reducing. And I’m have not deposited/withdrawing any additional amount in OD account.

    Is my thinking correct or I’m missing any calculation?

    Txn Date Value Date Description Debit Credit Balance
    31-Dec-15 31-Dec-15 DEBIT INTEREST— 9,613.00 -11,58,104.01
    12-Jan-16 12-Jan-16 BULK POSTING-BY SALARY– 15,500.00 -11,42,604.01
    31-Jan-16 31-Jan-16 DEBIT INTEREST— 9,556.00 -11,52,160.01
    12-Feb-16 12-Feb-16 BULK POSTING-BY SALARY– 15,500.00 -11,36,660.01
    29-Feb-16 29-Feb-16 DEBIT INTEREST— 8,896.00 -11,45,556.01
    14-Mar-16 14-Mar-16 BULK POSTING-BY SALARY– 15,500.00 -11,30,056.01
    31-Mar-16 31-Mar-16 DEBIT INTEREST— 9,460.00 -11,39,516.01
    12-Apr-16 12-Apr-16 BULK POSTING-BY SALARY– 15,500.00 -11,24,016.01
    30-Apr-16 30-Apr-16 DEBIT INTEREST— 9,099.00 -11,33,115.01
    12-May-16 12-May-16 BULK POSTING-BY SALARY– 15,500.00 -11,17,615.01
    31-May-16 31-May-16 DEBIT INTEREST— 9,348.00 -11,26,963.01
    13-Jun-16 13-Jun-16 BULK POSTING-BY SALARY– 15,500.00 -11,11,463.01

    1. KKP-If your EMI is fixed from the beginning but disbuse happening in middle means, it varies. In initial case the interest will be small and principal will be higher. But disbursement start increasing, your interest also raises and principal payment decreases. Once the disbursement is full, then interest will reduce as principal repayment increases.

      1. Dear Basavaraj,

        Sorry ,am not clear with below reply. Could you please help me understanding. This is same case with me as well. My regular EMI includes (Principle + Interest) & then what is “Debit interest” again , On which amount?

        Isn’t it , am paying double interest???

        KKP-If your EMI is fixed from the beginning but disbuse happening in middle means, it varies. In initial case the interest will be small and principal will be higher. But disbursement start increasing, your interest also raises and principal payment decreases. Once the disbursement is full, then interest will reduce as principal repayment increases.

    2. Dear KKP,

      Are you clear with your statement of Transactions (as posted above)??? Can you please help me in understanding?


  29. Hi Basavraj,

    I have a query regarding maxgain loan, i have take a loan of 22 lacs for 20 years,

    1) can i reduce the loan term from 20 years to 10 years
    2) can i increase my EMI as my income has increased
    3) is it good idea to reduce loan term or park surplus money in loan account

    Looking forward to your response


  30. Hi, I already have housing loan account which i had taken 2012 , now how wat are the steps to migrate from existing home loan account to Max Gain Home loan account to gain benefits of it

    Is it possible if so how do i can i do it through online sbi

  31. Hi Basavaraj,

    thanks for this wonderful forum

    I have a SBI magain loan for 40L taken in oct 2014 with various builder disbursements in last 2 years.
    last month( may 2016)the final disbursal was done and I will get the possesion next month.

    I have parked 3 lakhs in OD as surplus from the start of oct 2014.
    my emi as per schedule given by bank is 41079 but I opted to pay the EMIs from the beginning and am paying 41100 from the month of Nov 2014.
    I have paid total 20 EMIs till now and following is the latest statement.

    Description SBI H L MAXGAIN OD (AUG14)

    Book Balance -33,89,829.00
    Available Balance 4,98,498.00
    Limit 38,88,327.00
    Uncleared balance 0.00
    Drawing Power 38,88,327.00
    Currency INR
    Rate of Interest (% p.a.) 9.45%
    Lien Amount 0.00

    1. does this statement seem correct to you or you see any discripancy?
    2. on what amount is the interest calculated? is it on the book balance?
    3. how and where exactly am I saving the interest on the 3 lakhs surplus?
    4. by putting 3lakhs surplus does that mean now I am paying the EMIs only on 37 lakhs?
    5. Does SBI consider this as a pre EMI till possesion which has a different interest rate and do I need to intimate the bank after getting possesion to start the regular EMIs.

    Please clarify the doubts as I am finding it difficult to understand the maxgain statement and to know if the statement is correct.


    1. Peeyush-1) Yes, I think so. 2) It is on Book Balance 3) Your interest part of EMI is reduced and this is parked in available balance. Hence, your deposited Rs.3 lakh now showing as Rs.4,98,498.00. 4) Yes, interest is only on difference of drawing power-available balance. 5) Yes, you have to intimate the bank about possession.

      1. Thanks a lot for reply.

        I have also doubt on the ammortisation schedule from the bank which is as follows

        EMI Sheet (MRB) monthly reducing balance
        Loan amount 40,00,000
        Tenor 206
        Interest rate 10.15%
        EMI 41079
        Principal amount paid 56,10,413
        Interest 42,48,557
        Total amount paid 98,58,569

        My question is
        1. how come principal paid is shown as 56,10,413 where as actual loan taken is only for 40,00,000 which should be the principal. am I correct?
        2. when I do the EMI calculations from the emi calculators available on internet the EMI comes to around 40381 instead of 41079 as per banks schedule.

        Thanks again

          1. Hi Basavaraj

            As per your experience have you come across principal paid shown more than the loan amount taken. is that possible?

  32. Hi Basavraj,

    If suppose I shift my current home loan to SBI Max Gain, then I have to always park extra money in OD account or can I use it towards payment of principal too ?

    Jaydeep Sahu

      1. Some misunderstanding. I wanted to ask that is pre payment(directly towards the principal) allowed in Max Gain. If yes, then how many times can we do it ?

  33. Hello Sir,

    I have applied for Maxgain Home Loan of Rs.30,00,000 and it was approved.
    Rs.13,95000 has been disbursed to the builder. The property is still under construction.
    In my maxgain loan account, Available Balance shows as Rs.16,05,000 as this amount is not yet disbursed to the builder.
    I have opted for Full EMI, and the house loan agent said that I will be charged full EMI on Rs.30,00,000 instead of the disbursed amount. Is that true?

    Also if I park my surplus funds in my Maxgain home loan account, does I get interest on the surplus funds which I park eventhough property is still under construction? If yes, how much interest does I get? Please clarify.

  34. Hi,
    I have an SBI MaxGain home loan of amount 20 lacs.
    Of this, 10 lacs has been released to the builder.

    I have started paying EMI on the loan amount of 20 Lacs.
    I realised that I will need only 2.5 lacs more after couple of months for my property.

    This will bring the total amount disinbursed by SBI to 12.5 Lacs.
    I called the RACPC branch and asked them that if I get my loan amount reset to 12.5 lacs, will they change my loan type from MaxGain to Term Loan since the minimum amount required for a MaxGain is 20 Lacs.

    The branch replied, they can reset the loan amount to 12.5 lacs but it will still remain a MaxGain loan.

    After I get my loan amount reset to 12.5 lacs, my EMI will change and be adjusted to according to 12.5 lacs. But I have already paid few EMI installments which were calculated on 20 lacs.

    My doubt is as below.

    1)The EMI that I am currently paying(remember only 10 lacs disinbursed by the bank till now),
    a)will it have interest calculated against 10 lacs and principal against 20 lacs
    b)interest calculated against 20 lacs and principal against 20 lacs

    2)And after I get my loan amount reset to 12.5 lacs(withdrawing 2.5 lacs after couple of months),
    how will the extra EMI that I paid to the bank earlier be adjusted. It could be extra principal or extra interest based on case
    1-a or 1-b.

    Please help.

    1. Mukesh-1) A) It will be on Rs.10 lakh only. But the remaining EMI (interest and principal) will be adjusted to principal. B) I explained.
      2) It is already adjusted to principal.

      1. Thanks for your clarification.
        It’s a relieve to know that I am not paying interest on 20 lacs when I require only 12.5 lacs 🙂

        Keep up the good work.

  35. Hi Basavaraj,
    I have taken a homeloan 3 years back with SBI(Max gain). The house loan I availed during that time was for a small apartment and the loan amount is lesser. Presently am thing to buy a bigger apartment. Can I avail a Homeloan again under SBI maxgain for the second loan?
    Will the Bank give me at the same rate of interest?
    Is there any minimum loan amount that needs to be taken so as to avail maxgain facility?

    Please share your knowledge with us… 🙂

  36. Hi,
    We got a Max Gain loan in 2015 dec ( Women Power with interest rate 9.5 %), All disbursement happened till May. Recently I saw the interest rate for Max gain for women above 20 Lakh is 9.45% , However in our account it is showing 9.5 % , Any Idea who to get this clarified . Checked with the manager of operating branch , she asked me to contact RACPC and they are not responding .

  37. Hi,
    This is a very good article.
    One question.
    As you said the interest on surplus amount invested will be added in available balance (meaning available balance will go up by the amount equivalent to saved interest due to additional parked money). I want to know the date of such addition in available balance, is it last day of the month when the interest gets charged to account or any other date. Not able to find out the same from the statement, hence, the question. Thanks.

  38. Hi,

    I have availed maxgain for the construction of my house. The first instalment was credited to my account on May 31st. I am repaying only the interest for the fist few months and not the principle. Hence I need to manually pay the interest. When I log into sbi netbanking, I can see that the home loan also appears along with my SB account. When I click on the transactions, I see that there is an entry “Debit Interest” and some amount under the “Debit” columns. Is this the interest I have to pay for the previous month? And can I pay this amount online through netbanking?

  39. Before final disbursement, is it possible to apply for Max Gain OD account transaction rights?


  40. Hello

    I have max gain account and I have a home loan of 15 lacs.I have parked 5 lacs Rs in Max gain.Hence my outstanding shows 10 lacs.I have now another 2 lacs rs with which I want to reduce to loan amount .(means I dont want to park it but do partial payment to reduce outstanding amount.
    But banks refuse this proposal.They says there is no such provision to do partial payment in Max gain.
    Please advise

      1. Thank you sir,

        Can you guide me how to do it or escalate this matter to bankers?
        One more thing,if I have aloan of 15 Lacs and if I park 15 Lacs then my interest will be zero by what happend to the installment which I continue to pay every month.Will that amount adjusted towards principal?

        1. Harikrushna-You contact SBI Branch Manager. When your outstanding is Rs.15 lakh and you parked Rs.15 lakh, then as you said interest park will be zero and also full EMI part will be shown in available balance.

          1. Ok,Thank you very much.I will soon meer branch manager.
            Thanks for your help.
            I will be in touch with you

  41. Hello Mr. Basavaraj

    would appreciate if you can help me clear my doubt on sbi max gain home loan.
    I have take a loan of 53.25 lacs for under construction property for 20 years. First disbursement of 33.81 lacs happened in Dec’15. Also i opted for full emi option which amounted to 49600 k per month starting Jan’16. can you pls help me understand how the breakup of the emi (Principal and interest component) is distributed across different headings of :
    1. Available power
    2. Drawing Power
    3. Book Balance.

    to give you some idea about the actual transaction, my statement is showing ~26000 per month under “Interest Debit” heading for each month. so my question is where is the remaining 23600 (49600 – 26000) going? Is it sitting under Available Balance?

    request you to please help me understand this.


  42. Hi Basava,

    i don’t want to prepay towards principal. but want to park some amount in OD so that max gain facilities will be in use .so in SBI internet banking i have an option to transfer from ( SAVINGS ) and to (OD ) account . but the transfer type has many options like : PAYMENT TOWARDS LOAN REPAYMENT , DEPOSIT/INVESTMENT , GIFT , DONATION , EDUCATION FEE, OTHERS . which one i should select to avail MAX gain facilities.


  43. Dear Basavaraj,

    Thank you for maintaining this page – it is very useful. I had a couple of questions regarding SBI MaxGain:

    1. I am a bit confused about the tax benefits on Sec 24 when having SBI MaxGain. Considering Sec 24 is on accrual basis and not on payment basis (unlike Sec 80c), is the interest on the original amortization schedule followed for tax benefits under Sec 24? Or does the interest calculation used for Sec 24 consider the additional funds that may be parked in the MaxGain OD account?
    2. Is there any reason to not park additional funds in the MaxGain OD account, so as to get Sec 24 tax benefits? I hear people talking about “leaving sufficient loan balance for tax benefits”. But why would one want to pay interest on a home loan to gain on taxes? My calculations show that paying taxes is better than paying a higher interest so as to use Sec 24. Am I missing something here?

    Kindly help.


    1. Vasanth-1) For taxation, the actual interest you paid towards the principal is eligible for deduction under Sec.24 but not as per the original amortization table.
      2) Any amount you park in OD account SAVES your interest park. But you not get the tax benefits on the same.

  44. Hi Basav,

    My builder refunded me the excess amount through a cheque addressed to my maxgain account number. When I deposited the same, the credited amount is reflecting as reduced ‘Book Balance’, while i was expecting it to be added to ‘Available Balance’. Please let me know if it is correctly credited.

    Thanks & Regards,

  45. Hi Basavaraj

    I took SBI max gain loan in 2013 of Rs 8.8 L, for KHB site purchasing , till now construction is not done as KHB not given position letter, for initial two years the interest rate was less ie 9.55 % , after two years interest rate is 14.55 % Why ?

    At present I have 75 .000 as available balance , Can I withdraw this amount ?

    Or If deposit some surplus now and For construction can I use this amount ?

    1. Subhash-Usually they give loan as composite one like for buying property and then construction. I think you crossed the deadline and hence they are charging you more. Discuss the issue with bank.

  46. Hi,

    I took SBI Homeloan in 2012 for a period of 20 years (240 months).

    So far I have paid regular EMI’s and I could see book balance amount in MaxGain online statement which indicates the remaining homeloan amount.

    Can you please tell me how I can verify and confirms pending EMI’s? Is their any provision to check online?

  47. Hi
    Against a loan of 52L taken in May 2012, i had deposIted 20L as extra amount in the OD account. My principle balance as of now is is 15L.

    I have 10L spare that i can again park in this account. Doing this the loan will get closed in another year or so.

    Do i get this 20+10L back once the entire principle amount is paid up



  48. Dear Basavraj,

    Please help me with my following query on SBI max gain.

    EMI : 31,074 X 12 = 372,888

    As per my home loan statement,

    Repayment towards principal = Rs.53,536
    Repayment towards interest = Rs.2,67,425

    Total interest + principal = 53,536 + 2,67,425 = Rs.3,20,961

    But, I’ve paid total of Rs.3,72,888 and remaining Rs.51,927 which I’ve paid as principal due to surplus amount parked in my account is not getting reflected in my account statement.

    Please help me understand above.

    Atul Singh

  49. Hi, currently I am having an under construction property and part disbursements are progress. Now I have some liquid cash with me which I need later to pay to the builder as my loan is not enough to pay to the builder. If I deposit that amount in the Max Gain account, the available balance will increase by that amount. My question is, how the bank continue disbursing the amount; is it end when the sanctioned loan amount is exhausted (though available balance is positive due to the deposit for cash as mentioned earlier) or till Available Balance becomes zero?

    1. Thomas-Any amount you deposit in available balance during construction period is freeze. You are not allowed to withdraw. Better to keep it separately and pay to builder.

  50. Dear Basavaraj

    I took SBI tax gain HL in 2013 of Rs 8.8 L, for KHB site purchasing , till now construction is not done as KHB not given position letter, for initial two years the interest rate was less ie 9.55 % , after two years interest rate is 14.55 % Why ?

    At present I have 75 .000 as available balance , Can I withdraw this amount ?

    Or For construction can I use this amount ?

  51. Hi Basavaraj,

    Quite a helpful article. Thanks for the same. I would like to seek your expert views on the SBI Max Gain product. In general, is it the best option to opt for among all the other home loan offerings by SBI as well as other banks? Please share your views.

  52. Hi,

    Thanks for the informative post. I have few questions on the same.

    I have taken SBI Maxgain Home Loan of 48L (full disbursement at one time) and following are the transaction details –

    Book Balance -48,08,555.00
    Available Balance 0.00
    Limit 47,52,845.00
    Uncleared balance 0.00
    Drawing Power 47,52,845.00
    Currency INR
    Rate of Interest (% p.a.) 9.5%
    Lien Amount 0.00

    Date (Value Date) Narration Ref. No. Debit Credit
    11-May-2016 (11-May-2016) DEBIT 1,750.00
    11-May-2016 (11-May-2016) BULK POSTING BY SALARY 45,131.00
    30-Apr-2016 (30-Apr-2016) DEBIT INTEREST 25,028.00
    29-Apr-2016 (29-Apr-2016) CERSAI charges XXXXXXXX 115.00
    25-Apr-2016 (25-Apr-2016) DEBIT Misc Debit PROPERTY INS PREMIUM FOR HL 26,793.00
    11-Apr-2016 (11-Apr-2016) TO TRANSFER FINAL DISB TO XXX 48,00,000.00

    I have few Questions –

    1. Book Balance is not equal to Drawing Power + Available Balance. What am i missing ?

    2. DEBIT on 11-May of Rs 1750. What is the reason for debit ? I had my 1st EMI on that date.

    3. I see that Drawing Power is ideally the outstanding Principal amount, but my Drawing Power amount calculation is incorrect considering the above transactions. Don’t you think so?

      1. Thanks Basavaraj,
        1. Available Balance is 0.00 in my case, but book balance is not equal to Drawing Power. Can you please explain why ?

        3. Principal deducted so far = 48,00,000 (Loan amount) – 47,52,845 (Drawing Power) = 47,155.
        But i had paid only 1 EMI of 45131 as of date, which i assume should have more of Interest component. Why do you think is the Drawing power amount correct ?

  53. Hi Basavaraj, I already have an savings account with sbi , when i take max gain home loan will i have to open an another account for the OD purpose or will my existing savings account suffice.

  54. Dear Sir;

    I have a Max gain home loan account with a limit of Rs 20,35,840/-. Since the property was under construction the disbursement happened in stages. The total loan disbursed by bank till date is Rs 18,05,541/-. I had opted to pay the full EMI from the first itself. Now the book balance is Rs – 15,39,862 and availiable balance is Rs 4,95,978/-. The drawing power is same is that of limit amount. Now can i withdraw the available amount for my home interiors or do i need to take a top up loan? I have not parked any surplus or withdrawn any amount other than the disbursement requested by the builder. Please suggest.

      1. Dear Sir;

        In that case will the EMI reduce once I get possession? Or it’s just that my loan duration will reduce which is currently 30 years since I have been paying full EMI even though the full loan was not disbursed?

  55. I have a unique query.
    Can I pay EMI from my Available Balance in OD account? Can I set a pre-instruction in my OD account to deposit my EMI on a particular date to the MaxGain home loan account?

  56. Hi Mahesh,

    Suppose I have a maxigain loan.

    My Loan amount is :30 lakhs
    I have deposited: 35 lakhs in the loan account

    Will I earn interest from the bank for the 5 lakhs extra money?


      1. On extra amount of 5 lakhs ….he will earn interest 4% same as saving a/c interest rate…

  57. Hi Basavaraj,

    Is there any limit on Drawing Power every month? Because in my case

    Book Balance: 41,53,000.00
    Current Balance: 3000.00
    Drawing Power: 41,57,000.oo

    Yesterday my current balance was 10,000 and Drawing power was 41,64,000.00 and suddenly now drawing power was decreased and 7000 was taken from my current balance which was not showing in my transactions. Is some thing wrong here?


      1. No, I did not have any deposits other than the 10,000.
        Actually my total loan amount was 42,00,000 and i am paying EMI (Rs.40,950) for the last 13 months. As per the EMI Schedule, now I should have 80,000 in my current balance (considering i don’t do any other deposits other than EMI credits) but due to emergency i have withdrawn 70,000 from that and 10,000 was left over. What i was not understanding is every month drawing power will get reduce irrespective of whether you maintain any amount in current balance or not. How they deducted 7000 from my current balance? Why it was not reflecting in statements?

        Can you give more details about Drawing power limit?
        Ideally if i have 10,000 in my current balance, for my loan amount 42,00,000 what should be the Drawing power (Out standing principal) after one year?

        Sorry for asking too many questions but It will really help me to understand.

          1. Yes, I mean to say available balance should be 80,000.
            Just to make the question simple, how Drawing power will get reduce? How frequently?

  58. Is there any limit that even if we park more than 5 lakhs in Max gain account, only 5 lakhs will considered for Interest calculation? i.e lets say I have taken a loan for 2500000 and I am parking 7 lakhs, interest will be calculated for 20 lakhs instead of 18 lakhs.

  59. Hi Basavaraj,

    I am able to transfer money from my existing net banking enabled savings account to Maxgain account, but can’t do the reverse. Why?

  60. Hi Basvaraj,
    I have taken SBI maxgain loan on 09/05/2016 of 41lacs. As per SBI present rules the interest rate is 9.45%. But for Maxgain they said the interest rate would be 9.55%. Is it true.

  61. Hi Basvaraj,

    If I want to close the SBI MaxGain loan account as of today, which amount should I pay to the bank? Is it the amount reflected in the “Available Balance” ?

  62. Say i have taken a loan of 1crore (sanctioned) through SBI maxgain home loan and my current drawing power shows as 95Lakhs.
    My Balance shows as -22Lakhs.
    I have bought an under construction house and the possession is still an year away.

    I have got 82Lakhs disbursed to the builder through the loan.

    I still have to pay the builder 40Lakhs.
    I also have parked 40 Lakhs in the Maxgain account.

    My question is since i have 40Lakhs parked in the max gain account,which one of the following two cases can i get for the remaining amount to be paid to the builder
    1. (95-82)+27=40 Lakh disbursed for loan by the bank before possession or
    2. (95-82) Lakh only disbursed for the loan by the bank and i have to manage the remaining through other means.


      1. Thanks a lot. Btw you have nice site. Truly appreciate your effort in providing info.

  63. Hello Sir,
    Thanks for the nice article and promptly answering so many questions.
    I’ve availed 30 lakh SBI Max gain home loan for a under-construction flat. So far, the bank has paid 13 Lakhs out of 30Lakhs. Due to some reasons, the builder has delayed the construction for more than 6 months now. During this period, i’ve paid 5 EMIs(32K pm) so far and parked a surplus amount of 11.5 lakhs in OD account. Upon paying the last surplus amount, the Book Balance is showing -90K.
    My question is, if I pay another 90K, will i be able to close the loan? and will there be any fee for early closing?

      1. I’m expecting some more delay in construction by the builder(as it’s the case with every other builder due to slow down of flats sale in blore) and was hoping to arrange the rest of the money during this delay. Thought, atleast this would save me from paying interest. Currently i’m staying in a rented house, paying EMI & rent every month is putting me in a tight situation.
        I know there’s a risk ……
        Will there be any fine for early exit from the loan?, thanks to let us know.

  64. thanks for such informations.

    Can u telll me in case if i get 20lacs maxgainlaon and re deposit back 20lac same time, the coming emi would be intrest + principle where intrest would be zero but the priciple would be any ?

    please guide

  65. Sir, Can you tell me how SBI calculates its principal part from the EMI. I have prepared an excel sheet for calculating interest, my calculation exactly matches for interest portion every month but I am not able to figure out how much goes to principal & how much goes to Available balance portion.

  66. Hi Basavaraj,

    I have taken SBI maxgain loan and purchase plot. I transferred surplus amount on OD account, but still available balance is showing ZERO. Does it mean that I cannot withdraw not the surplus amount from OD?
    Also SBI maxgain is not applicable for plot?

    Please help.

    1. Ganesh-SBI Maxgain is not applicable to purchase a land. However, in your case I felt they sanctioned a composite loan. Check with bank. If that is the case, then I think they adjusted your amount towards principal.

      1. Hi Basavaraj,

        They have sanctioned Maxgain only also they have given OD account but only issue is available balance is showing ZERO after deposited surplus amount.

          1. Hi Basavaraj,

            1. I am also facing the same issue. It is a loan takeover case from LICHFL to SBI Maxgain completed on 21-Feb-16. Every month I am paying EMI since Mar-16. This month I transferred 2000/- to my OD account just to check if I can add any surplus. The amount got credited to OD however as expected available balance should have shows 2000/- as it is surplus, but still it shows ZERO.

            2. The other query I have is about Book Balance calculation, for me it is showing something like this:
            Book Balance: -3607605
            Available Balance: 0
            Limit: 3606656
            Drawing Power:3606656

            As per my understanding if available balance is ZERO then book balance should have been 3606656, but it is showing as 3607605. Can you pls explain, if I need to worry here? I am totally confused with this calculation.

            Regards, Ashutosh

              1. Thanks for the reply Basavraj. Do you think that I should connect with bank for second point?

                Regards, Ashutosh

  67. Hi Basavaraj,

    Thanks for the information !

    I have question regarding the available balance showing under OD account. Once the completion of loan tenure who is the owner of money parked under available balance ?


      1. Thanks for the prompt reply !

        I have a car loan OD account where i’m unable to figuring out the money flow. It would be helpful if you can help me out ..

        Scenario: I opened for SBI car loan OD account on April 1st 2016 with amount 500000. On the same day i deposited Rs.222000 in OD account. Now on 10th Apr, my 1st EMI – Rs 11000 got deducted from saving account (from SBI saving account) ; but i saw that the EMI amount got added to money i parked (i.e. revised amount is 222000 + 11000). Thus the total balance showing under parked is 232000.

        Today, on last day of month, i was expecting that, the interest portion only will be getting deducted from the available balance – 232000. But i saw that, the deducted amount is Rs 14000 (split may be like 11,000 + 3000 i.e. credited EMI + Interest rate calculated based on amount parked) . Now the available balance is 232000-14000 = 219000. I thought it should be 232000 – 3000 only. Can you please help me here to understand the calculations.


  68. Very informative information. I have a question:
    I have got a loan sanctioned Rs. 50 lacs for a under construction apartment. I got around 35 lacs disbursed from the bank and will require around 10 lacs more to be disbursed within an year. I have paid around Rs 15 lacs to the bank so the book balance is Rs. 20 lacs. I want to withdraw Rs. 5 lacs from this account for personal use. However, bank is saying you can only withdraw the amount after the amount is fully disbursed or you get final registry papers. Before that you cannot take out money from Maxgain account, and we cannot issue you cheque book and debit for the same. Please let me know if this is true.


  69. Hi Basavaraj,

    I took SBI Maxgain loan of 30 L and final disbursal is done in Feb’16. However since after that I’m expecting Drawing Power to decrease and Principal amount to go toward it, however still DP is not getting decreased and it showing 3-L only. From every month EMI principal component is as good as surplus fund. When I discussed the same with SBI bank Manager he seems clueless and asked to wait and watch :)), however I’m little worried now. Bank Manager was also saying something related to Mortgage date which is June’15, however I didn’t understand any thing about it.
    Can you please help me out here.

    1. Kapil-It must goes down. If it is not, then the problem with bank. Instead of waiting (they are just lethargic), try to raise the issue officially by submitting a letter to them. Let them respond to it.

      1. I have the same type of problem. I got maxgain scheme sanctioned on 15/02/2016 as a take over from LIC HFL. In my case also dp is not decreasing. Only the interest is getting adjusted from the emi and the rest amount is showing as available balance, but the dp remains same. I contacted the RACPC to know that limit reduction date has been wrongly fed as 03/03/2020 inspite of 03/03/2016. The officials are trying to rectify this but in vain. Now due to this I want to convert my loan to term loan.
        Kindly advice me how to get out of it.

          1. I have written mail upto the GM, customer at corporate office around 10 days back. But nothing improved as yet except forwarding my grievance to the local head office.
            I am not sure whether they can modify it? Some where in your blog I read as it follows a fixed amortization schedule.
            Kindly suggest me how to proceed in this case.

              1. I have done this also. At least 10 times I went to the RACPC, Sat in front of the branch head AGM from almost 2 PM to 7 PM. After trying for 2 to 3 hrs they are returning me back with a promice that they need some more time and will solve it in a couple of days. One thing is sure, no body there is well versed in operating this product. Since 10th of March till date I have been running from pillar to post, contacted almost every one ranging from Manager to AGM level, but in vain.

                1. Manoj-Sit in front of them, write letter to RBI and Banking ombudsman. One copy to them too. Take the acceptance of that letter from them. They really really need some hardest shock from you. Please never stop or not accept this. They still feel the 1942 era and they never feel that they are for you.

                  1. Yes, thanks for your support. I am waiting for one month period from 23/04/2015 when I send a mail to their corporate office. As per SBI grievance redressal policy maximum time required for redressal is 1 month. After that one can approach the ombudsman. One thing I want to know from you is whether my e- mails will qualify for a valid documents required by ombudsman or I will have to write a letter in hardcopy and post to them?

  70. Thanks for the article. Very informative.
    I have one wired question.
    Every month end, I get sms from SBI mentioning ‘EMI not received for ac no. xxxxxx. Please pay by 30/04/2016 (for this sms) else penalty will be charged’.
    I am confused why emi is due at the end of month? As emi date I chosen is 10 of every month.
    Is this problem with SBI software or actually we are expected to pay emi for maxgain od account at end of each month?

    Please resolve my query if you have info or came across this question in past.
    I am also planning to visit bank personally to understand what this glitch is..


  71. Hi

    For max gain account does SBI charge the applicable inters rate ( 9.4 % now) on the differential amount of total outstanding amount of Loan minus the Surplus /withdraw able amount or is it that they pay only 4% simple interest on the surplus amount and then deduct this from total interest payable @ 9.4% on the outstanding principal.
    Thanks in advance.

    1. I Hi Basavaraj,

      This is Prashant. I want to ask you one query regarding Max gain account.
      If i surplus my month amount to Maxgain and from there i will make transaction for bills is OK.
      But how to know my exacat surplus balance and account balance. Otherwise there is possiblilty to transfer extrax amount that available surplus.
      I think there is no such facility available on internert banking.
      Pleae guide

      1. Prashant-You can pay the bills from MaxGain OD account as it is exactly like a savings account. Regarding checking exact surplus balance, you have to go through the summary of a statement.

  72. Hi Basavaraj,

    Book Balance -15,00,700

    1. Is Book balance = outstanding loan amount??

    2. So if I make a payment of Rs. 15,00,700 to SBI next month and want to close my loan account, would that mean I have cleared my home loan?

    3. How can I reduce my drawing power?

    4. What is the advantage of reducing the drawing power?

    Thanks in advance and really appreciate the great work you are doing.


    1. Dennis-1) No drawing power is an outstanding balance. 2) YES. 3) Pre-payment towards principal will reduce it. 4) Drawing power is nothing but your outstanding principal. It reduces your EMI.

      1. Thanks Basavaraj for your prompt reply.

        So as I understand – any surplus money that I park in my maxgain account is not considered as pre-payment towards outstanding principal.

        How do I make pre-payment towards principal?


            1. one more question Sir – how do I decide if I should pre-pay the principal OR keep parking the surplus to save on the interest?


                1. Hi Basavaraj,

                  How to inform bank that I want to pre-pay principal. I read somewhere that maxgain do not have anything called prepayment of principal.

                  In my case I have surplus which for sure don’t need it in the future. So I don’t mind paying it as pre-payment.

                  Regards, Ashutosh

  73. Hi Basavaraj,

    Thanks for giving home loan details.
    I have SBI home loan of 36 lacs and in my max gain account i parked 5 lacs rupees. now I want to reduce my principal amount from 36 lacs to 31 lacs by doing prepayment. Can i make the prepayment in case of SBI home loan?
    i know that by putting amount in OD account i am indirectly paying interest on 31 lacs but still i want to reduce principal amount. is it possible?

      1. I heard that you can only In Maxgain, a prepayment is allowed only 2-3 times during the entire loan tenure, with each prepayment amounting to a minimum value of 20% of the outstanding loan amount.

        Is this true?

  74. Loan was disbursed on 12th march -16, but i mot getting the disbursement letter from bank , and fisrt installment was on 10th april -16 .
    Still same installment was cutting thru my account by ECS

  75. i want to repay my sbi max gain home loan and confused as i have two accounts shown in my savings accounts as linked.


    which one is used for prepay of loan. i don’t want to withdraw money just repay the amount?

  76. hi Mr.Basu

    nice to see ur info , and very infomative

    i have a doubt
    i have taken a home loan from SBI max gain option
    Loan amount – 37.5 lacs
    interest – 9.3 %
    tenure – 15 yrs

    Scheduled EMI – 38700

    EMI which am paying is Rs 4000

    Pl clarify whethere the extra payment ( 40000 – 38700 = 1300 ) 1300
    is reduced in principal portion or will be parked in OD account

  77. Hello

    I have closed my SBI Home Loan few days back but still my EMI ( ECS from ICICI Bank) was deducted today. Will the amount be rolled back to me or it will be credited to OD Account ? If it will be credited then how can I withdraw this amount.


      1. Basavaraj Jee,

        In Maxgain OD, SBI has been deducting small amount every month.Why?

        I have parked all the loaned fund in the OD account.

        Book Balance 0.00
        Available Balance 36,06,156.00
        Limit 36,06,156.00
        Uncleared balance 0.00
        Drawing Power 36,06,156.00

        This figure was 3611000 a month ago.

          1. Hi Basavaraj,

            Few questions for this case:

            1.) Will this EMI be taken from Available balance or from the account where ECS is mapped?
            If from ECS, then what if there is no fund in ECS account at some point of time?

            2.) Considering book balance = zero but Drawing Power 36,06,156.00.
            Since you explained that Tenor and EMI is fixed, so EMI = principal part towards Rs.36,06,156.00.+Interest part on Book Balance(which will be zero)+Surplus interest part.

            Is my understanding correct? Does the surplus interest part earns with the rate of loan interest rate and goes to Available balance?

            1. Alok-1) It is from ECS. If amount not present in your savings account then it is default for that particular month.
              2) Yes, interest part will be zero and the interest part of EMI will be credited to available balance.

  78. Hi Basavaraj Sir,

    How ca I check my Max Gain statement?
    My first EMI is deducted from my Kotak salary account but the same is not reflecting in the OD account of SBI in my SBI buddy app.
    Need suggestion.


  79. Hi Basavaraj,
    I can to increase my HOME loan EMI ?
    is any option available in maxgain ?

  80. Hello,

    I have a doubt also.

    I have taken 26L loan from SBI on 4-Feb-2015 and my first EMI date was 25-March-2015.
    Exact 26L was also disbursed to builder on 4-Feb-2015.
    Now, though I have taken 26L loan only, at the time first EMI date, my book balance was 2618075, means Rs 18075 extra.
    Bank has charged me Rs 18075 more for rest of days in Feb-2015. That is 25 days @ rate of 10.15% by formula (2600000*10.15/365)= 723.01 per day * 25 days of Feb-2015 = 18075/-.
    So next to this what happened is that, I had paid initial 3 EMIs of Rs 25350 (23350*3=76050) to reduce the home loan to actual loan disbursed 26L.

    When I have asked bank abt this, they are saying its normal process. I want to know if anyone has also observed the similar pattern in their home loan or I’m unnecessarily charged?

  81. Hi Basavaraj, Thanks for the previous information and support.

    Question regarding the Drawing Power/Limit.

    29 Mar 16
    Book Balance -978280
    Available balance 723780
    Rate of Interest : 9.55

    30 March 16
    The Interest is added for 10005 Rs to OD and Book Balance Increase to -988285 and Available balance reduce to 713775 and Limit remain same(Limit-1702060)

    5 April 16
    The EMI is paid to SB and moved to OD Account.
    My Limit/Drawing power is reduced to 1699259.00 (2801 less than previous limit)

    Now my Question is the interest calculated for March Month is only 10005 Rs.
    So My limit should be reduced by difference of EMI and Interest

    ie (EMI (17349)-Interest (10005)=7344)

    So my Limit should be 1702060-7344=1694716

    Can you explain why the Limit is not reducing in the same way?

      1. Hi Basavaraj,

        My EMI is 17349 Rs.
        I have 7 Lakh as surplus amount in my OD account from March 2016.

        Till Feb the monthly interest cut is approx 15000 Rs
        In March the Interest cut is only 10000 Rs due to parking of surplus amount.

        My Principal reduced from 1702060 to 1699259 in April month (Value of 2801)

        Question is why is the principal amount not reducing with respect to Interest cut?
        As per my understanding
        The principal should be reduced as follows.
        EMI-Interest=Principal Reduction (17349-10000=7349 )Rs
        where as my EMI reduced by 2801 (1702060 to 1699259)

        1. Hudson-Your principal will reduce as per earlier amortization table. Whatever the additional savings in interest will be parked to available balanced back, but adjusted to principal.

  82. hi Basu,
    Lets say, EMI date is 10th of every month. I see that interest is effective on the OD account on 30th of every month. Which means for the first 10 days of the month the interest is calculated on the outstanding amount + the actual interest calculated by the bank.

    e.g, Loan Amount ( Drawing Power ) : 10 lac
    Available Amount : 1 lac
    Book Balance : -9 lac
    Let’s say EMI is : 10,000 ( principal : 1000 and Interest is 9000 )
    Now, on 30th of that month, the bank would interest to the drawing balance – updated amount will be -9.01
    on 10th of next month – EMI will be effective – my understanding is that the actual interest would not be 1000 but marginally more than 1000 ( may be 1010 ) as there would have been an interest calculation on 9.1 lac for 10 days.

    Is the understanding correct ?

    If true, that means in the simplest case if someone opts for a max gain account and was not able to park any surplus amount, he/she would be paying marginally more interest then a traditional loan account ( considering no pre payment, fixed interest, tenure and other outside factors constant )

  83. Hello Basavaraj,

    1) Once the agreement is made how the loan amount can be reduced.?

    2) After the agreement, I gave the money to one SBI employee for home loan agreement registration. The reciept need to be collected within 30 days. Do i need to care about it or its the responsibility of bank to get it done?


    1. Rakesh-1) If you don’t need the high amount then you have all authority to either go for full loan or reduced loan.
      2) You paid money, so it is your responsibility to ask for receipt.

  84. Please let me Know the details of Income Tax Exemption on SBI Maxigain Home loans

  85. Hi Basavaraj,

    Great Info. 1 My details

    Book balance : -988285
    Available balance : 713775
    Limit : 1702060
    Drawing Power : 1702060

    Question : I have one OD account and one saving account. I have depostied surplus amount ( 713775 Rs) in OD account. Is it ok I don’t pay the EMI? Will the OD account automatically cut my EMI?

    * I used to deposit the amount in my savings account and same used to be debited to my OD account.

    Can you suggest what would happen if I don’t deposit the EMI figure (17349 Rs) on monthly basis, but have surplus amount in the OD account?

  86. Hi Basavaraj,

    I have taken SBI home loan in 2013 of Rs. 28 Lacks. At the time of taking this loan we were not aware about max gain. Currently we are located in banglore and we want to avail this facility on this home loan. can we do this? If yes please tell me the procedure to avail it.

    also we want to transfer my home load from delhi to banglore. Can we do this? if yes please tell me the procedure.

    Thanks in advance,

    Rabi singh

  87. Please find below Loan Account Amount details:

    Account Number 000000xxxxxxxxxx9
    Description SBI H L MAXGAIN OD
    Book Balance -22,79,781.00
    Available Balance 1,23,495.00
    Limit 24,03,276.00
    Uncleared balance 0.00
    Drawing Power 24,03,276.00

    1. Do I need to pay interest on Book Balance amount or Limit Amount If I didn’t utilize Available Balance 1,23,495.00 ?
    2. I want to clear all pending amount in this week & next month planning to go for registration. However as per agreement last disbursement 2.5% will release at the time of registration as SBI T&C. If I wait till May month then I won’t have good car parking options because builder is started giving parking on the basis of first come first serve?

    Please guide me in above stated issue? Big thanks in advance

  88. Hi I have maxgain loan since 2013 with the emi of 18838 for 15 yrs.Now the current outstanding is ~1558000 Rs & I want to decrease my current tenure by increasing emi amt to 22000. Pl guide me what are the benefits increasing emi & what to do to reduce loan tenure.

      1. Thanks for your response… but would like to know whether tenure gets decreased in maxgain loan.

  89. Hi,

    I have taken a maxgain loan and have got some amount already disbursed. (20L out of 50L loan amount).
    I am already paying EMI on it.

    My question is –
    Q1 – I am from Karnataka. During the property registration, If I want to add my wife as co-owner, do I necessarily need to add her name in the loan co-borrower as well?

    Q2 – If yes, then what all are the documents needed to get my wife added as a co-borrower the SBI max-gain loan. As I am recently married, I don’t have my marriage certificate ready yet. Wedding card and photos are there.

    Q3 – If I add her as co-borrower and in registration if add keep her as primary co-owner, will I get inetrest rate relaxation now?

    Thanks in advance.

    1. Manish-1) Why you want to add her as co-borrower to loan? They allow co-borrower.
      2) Contact branch.
      3) Primary co-borrower means she must have income to prove the eligibility of loan. Do she pocess that?

  90. Hi ..

    i am new here … i am planning to take SBI MAX gain home loan.

    My property status is ready to move in state , total it is costing 40L.
    My requirement is 20L of home loan and i want replay it in 10years.
    so when i calculate with above requirement i am getting EMI as 25934.

    so my questions are :
    1. Is it a right choice of going with that much loan amount and tenure.
    2. Is it good to go with sbi max gain
    3. i have already savings account , can it link sbi max gain to it or open new one .

    1. Sravan-1) That you have to decide.
      2) Better if you are expecting some cash in between and by parking that in OD, you can gain some interest.
      3) You can link the same existing savings account.

  91. Hi ,

    I have taken Home Loan from SBI Max Gain, i have around 4 lakh balance in OD account. I will get possession of the flat within this week. Can i withdraw the remaining money from OD account after that ?

      1. Thanks for the reply .

        I am lit bit confuse here. I have taken loan of 32Lakhs , used around 28 . So 4 lakhs are remaining in the Home Loan account. So can i withdraw it or transfer it to savings account linked with it ? I

  92. Hi Basavaraj ,

    I have taken loan of an amount 35 lacs from SBI (with Maxgain) for an under construction property and getting possession by year end 2016. I opted for full EMI starting from day 1 i.e. first disbursement. My EMI is Rs. 33981. Till date I already paid 8 EMIs (starting August 2015)

    Here is my current status

    Book Balance -27,31,905.00
    Available Balance 7,68,095.00
    Limit 35,00,000.00
    Drawing Power 35,00,000.00
    Rate of Interest (% p.a.) 9.3%
    Lien Amount 0.00


    After paying 8 EMIs, still my drawing power is same. Why it is not reducing? I am not getting clear idea on how much EMI portion is going for principal and how much for interest (I am assuming it would be simple interest till possession)

  93. Hi

    I have a SBI max gain OD account of 20 lacs for an under construction project. The disbursed amount so far is 17 lacs. It says I have an withdrawal power of 3 lacs. Though my particular flat is completed but the amenities and other flats of the project are yet to be completed which will take another 8 to 10 months time. Hence I have not done the registration yet. In this particular condition can I withdraw the 3 lacs amount from my OD account to start off the interior design of my flat? If yes then how?


      1. Hi what is bulk posting by salary referring to, which is featuring in my loan account….. SBI MAX GAIN.

  94. Hi Basavaraj,

    Thanks a ton for the informative post and answering the questions!!!

    I have a question regarding Max Gain:

    Let’s say I park all my surplus into the OD account making Available Balance=Drawing Power. What happens next month? Does the bank stop deducting any EMI? If it does, where does the money go to?


    1. Vivek-No, EMI will continue, they adjust the principal part towards the outstanding principal and interest part will be ZERO, which they credit back in available balance.

      1. Thanks Basavaraj.

        I want to pay off the loan but keep the OD account open for any emergency usage. Of course since I have kept all the money in OD account, I don’t want to pay any more interest. After making Book Balance=0, this is what I understood then, please correct me if I am wrong:

        Let’s say for a particular month, EMI=X (principal) +Y (interest). SBI will deduct same EMI and adjust into the principal part according to original amortization schedule reducing the Drawing Power by X. Meanwhile, since the interest part is zero, entire deduction towards interest is credited back into the Available Balance increasing it by Y. Now, if I have an auto debit on my OD account to send back EMI amount into the account from which EMI is deducted, the cycle will continue and effectively I won’t have to pay anything.

        Thanks once again for all your time.

          1. Hi,

            Is it possile to do in case of under obstruction property? As i have known from your blogs that money cannot be withdrawn or transferred before possession. Thanks

  95. Hello Basavaraj,
    I have taken a home loan in SBI. but it is not “SBI MaxGain Home Loan”. Is there any provision to change my current homeloan to “SBI MaxGain Home Loan”. Please advise. Thank you.

  96. Hello Basavaraj,
    My case
    Loan sanctioned 35L
    Disbursed amount 20L
    My saving 20L
    Property is under construction
    First EMI of 36K due on 15 April.
    1)If I park my saving i.e. 20L then will the EMIstill be 36K principal + 0 interest?
    2) EMI will be deducted from my father’s account as he is also coborrower, so Where to park surplus ? in my saving account or my loan account or father’s accnt?


    1. Rakesh-1) EMI will be as usual. The interest part of EMI be ZERO and will be re-deposited to available balance.
      2) If you park surplus during pre-construction period, then you are not allowed to withdraw it. Instead park it after construction over. You have to instruct them to transfer to available balance. But not in your father’s savings account.

      1. Thanks alot Basavaraj. What if I had opted for Pre-EMI instead of EMI then would I save more money because I can repay my loan in next 2 years.

            1. So i will park my saving because I don’t need it untill possesion. In this way i can atleast save interest

                1. One thing came to my mind is it good to reduce loan amount from 35L to 15L by paying 20L towards principal instead of parking in OD?

                    1. in either of the case whether I reduce loan amount or put in OD (for full loan amount) will i have loss. I mean will I be paying more from my side? If NO then i think the later one is favorable because after possession I may need that money and can withdraw while in former case once money paid to builder , its gone forever.

                    2. Hello Basavaraj,
                      my last question to this thread. If Available Balance is greater than Drawing power then Book Balance will be positive. Is Book Balance then fully withdrawable? Thanks a lot.

  97. Dear Sir,
    Hi this mayureshwar
    1) I booked one flat which value is 32lakh,i already given 12 lakh to builder now within 1 month possession of my flat my sanctioned loan amount is 20,49000 /- now sbi person ask me for life insurance compulsory is like that if yes then how much will be life insurance amount & shall i paid it separably or adding in my loan amount please clarify it.
    2) If i want to disburse only 18lakh instead of 20 lakh & remaining amount i will pay now from my saving account is that fine bcz now that account as per sbi person will be max gain which still not activated is that possible to convert its in to normal account.
    3)I am still confuse which loan schme i want to take when that max gain account will beneficial please reply.

    1. Mayureshwar-1) It is not compulsory to buy life insurance. Let him show the ruling of RBI (not SBI internal notification). Also, even if you want to cover the risk, then it is not compulsory to buy the product which they say. It is entirely your decision.
      2) Yes.
      3) SBI MaxiGain is useful when you are expecting some cash during loan tenure. This cash you can use it for timely parking in SBI OD and get the benefit. Otherwise, normal is fine for you.

  98. Hello,

    How do i check the principal amount deduction from my SBI maxgain HL. My Full EMI period started from last month. Excess amount that i paid during Pre-EMI tenure shows up in Available Balance.

  99. MR. Basavaraj,

    Thanks for this blog. Really its very useful. I have few questions regarding home loan.

    1. Is SBI max gain option is best home loan, if i can pre-close the entire loan within 1 yr.
    2. If not what other bank or loan option do you suggest.
    3. How many times we can do part prepayment towards principal amount can be done in the lifespan of SBI Maxgain loan.
    4. While making part payment towards principal amount do we have option to reduce tenure keeping the EMI constant in SBI max gain.
    5. Is their any preclouser charges or lock in period for preclouser of loan
    6. Is their any minimum amount criteria, for depositing the surplus amount to reduce the principal loan amount.

    1. 1) If your time horizon of closing the loan is just a year, then I don’t think this will act as a best home loan.
      2) Go for a regular home loan.
      3) You have to check with SBI.
      4) YES.
      5) NO.
      6) Yes.

  100. Hi Basavraj,
    Thanks for sharing this info.

    I want your suggestion in my case. I bought a under construction property for about 65 Lakhs and possession will be after 2 years . I have paid the builder about 11lakhs during agreement and SBI approved my home loan for about 48.91 Lakhs. My max gain account balance is :
    Book Balance -19,82,136.00
    Available Balance 29,08,864.00
    Limit 48,91,000.00

    Now, I have a surplus 10 Lakhs in my saving account. Which is best option for me to pay the remaining amount to the builder from below two options?
    1) Give the surplus money directly to the builder.
    2) Park the surplus money into OD account and disburse the money from available balance

    1. Rohit-It depends on you. Because during under construction period, if you park any amount in available balance, then it will not be liquidated as and when you need. Hence, first know of your surplus amount like when you need. Based on that you can take a call. I suggest you to pay to builder.

      1. thanks! 2 more questions

        Question 1:
        If I gave surplus directly to builder then what all document bank needs from me and builder? If builder ask for 10 lakh can I pay 5 lakh from my pocket and disburse 5 lakh from OD and in this case bank needs demand letter only for 5 lakh or full 10 lakh?

        Question 2:
        Can I pre-pay home loan from the surplus amount parked in the OD account before the final disbursement?

  101. Hi Basavaraj,

    i am old member of ISG and VIC and know you.

    I had taken 37 L from SBI (Max gain , OD account). Then I parked 37 L in the same account as I was told that I can save interest. EMI is still being deducted and deposited to OD account. My understanding is whatever EMI is being deducted it will go towards principal only and help me close the account quickly. EMI is 40101. So per year 481212. 3700000/481212. My assumption is i will be able to close within 7.68 years. What do you think?

    1. Shrikant-When your outstanding and available balance both are same, then interest from that EMI will be transferred to available balance. Principal will be adjusted as usual. In such situation, if you don’t need cash then better to close it early.

      1. Basavaraj Jee

        Follows the status

        Book Balance 2,82,985.00
        Available Balance 39,00,805.00
        Limit 36,17,820.00
        Uncleared balance 0.00
        Drawing Power 36,17,820.00

        Shall I close?

        Can I close later?

        Will they charge interest from me while closing the account?

        1. I think..interest is zero now as I have parked full principal amount. Even if EMI goes to OD account, I can always withdraw and transfer to saving account and invest elsewhere. Once the balance reached the drawing power limit, bank stopped debiting interest. Now the account statement shows only credit of EMI but no deduction of interest.

        2. Shrikant-They will not charge. But the interest part of your EMI will go on adding to available balance. If you don’t want that cash which is present in available balance, then I suggest to close the loan with immediate effect.

      2. Hi Basavaraj,

        Is it not a good idea to keep the loan open and earn higher interest rate? Since now that there is no interest to be paid, will the interest generated from the loan not higher than the EMI. If you can provide a scenario, it would be very helpful as I am not sure how calculate it(close or keep the loan with zero book balance).


        1. Murko-Yes, many do that. Because in current scenario you earn more than the other instruments and also this earning is tax free, which is not the case with Bank FDs or other fixed instruments.

  102. Hi, I have loan with LIC HFL (10.2% floating) which I’m planning to transfer to SBI Maxgain. I have some doubts:
    1. Is there a provision to do part-payment like other banks? (if I do not need the money in future)
    2. Is part-payment equivalent to keeping the money in OD account and never withdrawing it?
    3. Let’s say over my entire loan tenure, I deposit 10 Lakhs and never withdraw any of it. At the end of loan tenure, who is the owner of 10 lakhs? Me or SBI?
    4. Do I earn any savings interest (normally 3.5%) on the money parked in OD account?

    1. Abhik-1) You mean towards principal? Yes, but you have to inform to bank.
      2) No. Part payment will be adjusted towards principal. So either EMI or tenure will change. Whereas in case of keeping money in OD will only save your interest part. Nothing will change.
      3) It depends on where you deposited. Towards principal or in available balance.
      4) Money saved on your principal is money earned, which is equal to your home loan interest.

      1. Thanks a lot for your time and guidance. The SBI person is saying that I must take home loan insurance which would be 22K for my loan amount. Are you aware of any such rule? If such a rule does not exist, how do I convey the same to the bank.

        1. Abhik-It is not mandatory. If they are insisting to buy, then let them show the rules or let them put in writing of what they are saying. Please share your experience later. To guide me in better way.

  103. Hello,

    I have one question regarding SBI Max Gain.
    I had availed loan of Rs 30L (transfer from HDFC) in 2013. I had opted for 32k EMI.
    Every month, around 7-8k was getting reduced from principal and 23-24k as interest.
    Then I had increased EMI to 40k.
    But with new increased EMI, principal getting reduced is still 7-8k and that additioanl amount (40k-32k=8k) is getting added to my OD account every month.
    When i asked at bank brance, the lady told me, as you are getting that money back in OD a/c, what is the issue. I asked why cant my principal gets reduced by additioanl 8k, but she was not having any answer for it.
    can you please help

    1. Chetan-I think they not revised your EMI schedule. You have to speak with bank immediately. They are clever. Because they dont’ want your loan be cleared so early!

  104. Hi Basavaraj,

    I have a SBI MAX Gain HL of 22.50 L and I am paying Regular EMIs of 20K from March 2011, now that i can pay more as EMI or Park funds in Maxgain Account, please let me know if i should increase my EMI from 20 k to 30K or Park 1 L Rs to OD Account .


    1. Prashant-If you don’t need this surplus then let it be adjusted towards principal (which ultimately reduce either EMI or tenure). Otherwise park it in available balance.

  105. Hi Basavaraj,
    Since loan was sanctioned only interest rate was deducted, then I visited the bank & requested to deduct the EMI & it was agreed, but on 31 Dec 2015 sum of 18065 (Only Interest amount) was debited & on 1 Jan 2016 same amount was credited to Max gain HL & EMI of 22000 was also deducted & same thing happened the following month. So I paid around 39000 in total for each months.
    Can the Interest rate will be carried forward or adjusted for next months EMI. As per bank manager statement it will not be returned. Kindly clarify

  106. Hello Basvaraj,

    could you please answer my questions –

    1) the EMI is calculated on the amount which has been sanctioned (30 L) or the amount which is disbursed (15 L)
    ( *remaining 15 L, I will pay from my saving)?

    2) Is it good to start full EMI after the first disbursement or only after full disbursement for under construction property


      1. Hello Basavaraj,

        thanks for the clarification. A little doubt again (excuse me for the wrong terms if used below)-

        1) I booked a flat and my father is power of attorney. I am the only co-owner of property but we (I and my father) are co-borrower of loan. To avail benefits of tax deduction is it necessary that my father must be co-owner.

        2) If your answer to first question is NO, then my next point is here. In loan application/agreement do the co-borrowers need to specify the ratio something like 50:50 or 70:30 ? I am NRI and I wont be benefiting anything at all but in loan if the proportion of my father who is in India is made more then he will be getting more benefits while tax claim or ist it?


  107. Hi Thanks for such a wonderful post.
    i have sbi Max gain home loan for under construction property.
    if i will deposit any surplus amount in max gain account during construction phase, will i be able to withdraw this money after i got the transaction rights ?

  108. Hi Basavraj , that was really a good information.I have this SBI max gain home loan since 3 yrs.I am now out of India for last 2 yrs and I have some excess money in my NRE account.Now I will get the possession of my flat next month.I want to know is it good option to shift tax free NRE money to OD account.I may need this extra money after 2-3 yrs.

    1. Hi my SBI max gain loan was disbursed on Jan 30th, & I have opted for EMI auto start by ECS from 10th March, anyhow I was informed that some amount will be debited from account towards interest for 10 days ie. Jan 30- feb 10th… & I have parked amount in loan account… Nothing is being debited till now,.

      Please let me know hoe exactly will the EMI process be & when will it be debited.

  109. Hi Basu,
    Let me begin that I learnt more from your blog than bank officials. Bow to your knowledge and explanation.

    Loan amount / Duration :- 30 L / 30 years
    Demand Notes amount submitted till date :- 15 L
    Salary Account : HDFC
    House registration :- Not done
    Property status :- Work in Progress. Will be completed in 2-3 months

    1. I have been instructed to commit 26k (approx) every month from my salary account to Loan Account
    2. If I have only drawn 15 L, why should not be I paying interest on this part rather than whole
    3. Now HDFC will deduct 26k in auto-debit mode, can I ask SBI officials to refund excess amount

    Thanks in advance

      1. Hi Basu,

        In above explanation, you have said, max gain home loan will never reduce the tenor of the loan then how come you are referring above post, tenor will be reduced?

        Is it normal sbi home loan? please clarify.


  110. Hi Basavaraj,

    I had taken SBI Max gain loan for plot to construct house on 20 Mar 2014, but due to some unfortunate events and some land issue locally I was unable to do so.
    While taking loan they had informed I have to construct house within 2 years of loan release (full amount) but these rules are not mentioned in any terms and condition of any documents I received.
    Now if I close loan before end of two years whether I will be charged high rate of interest? Different branch manger have different versions. My branch manager says there will not be any additional charge and branch which is next to my home says there will charge commercial rate of interest from day 1 even though if I close within 2 years!

    I need your help in understanding terms and conditions of max gain when a plot is bought to construct house. within how many years we need construct house and if these conditions are not met then from what time will they charge commercial rate of interest?

  111. Hai, I applied SBI Maxgain HL of Rs.20 lakhs and our flat is under construction and going to get possession in 1 month i.e. march 2016. Rs.19 Lakhs payment disbursed from loan and last 1 lakh is pending and that will be final against possession.

    I have done almost all repayments apart from regular EMI’s. my account is showing as below

    book balance = (-) 1,43,545.00

    Available balance = 17,78,270.00

    Uncleared balance = 0

    Drawing power = 19,21,815.00

    Limit = 19,21,815.00

    Lien amount = 0

    Is is possible to pay the last payment of Rs.1 lakh from my own instead of from bank ? Also please let me know how much i have to pay to close my loan.

    Is it possible to close my load before possession.

    Kindly advice me. Thanks a lot in advance for your help/advice.

    1. Arun-Yes, you can request bank for not to disburse the last payment and can pay on your own. To close the loan, again you have to request it separately for your intention of closure of loan.

      1. Thanks for your valuable advice.

        But is it possible to close my load before possession if I wish. Also please let me know before i close my loan i have to pay the remaining book balance amount of Rs.143545.00 and make it zero (i.e. 0) correct??

        Thanks again.

  112. I now have a question regarding SBI Max gain home loan. I have taken a loan of 10 lakhs from SBI last year.

    Now i am planning to convert normal home loan to maxgain scheme is this possible?

    First of all maxgain scheme is eligible for the principle loan amount of Rs 10Lakhs?????

  113. Hi,

    The post is very informative and useful.
    Kindly provide your views on the below query.

    I have SBI maxgain account.
    Loan sanctioned amount is 20lacs.
    Loan is taken against property which is under construction.

    Now say if i park and additional amount of 5lacs at one go (in addition to Regular EMI) in my OD account.
    Can i withdraw this amount (5lacs) any time i desire or this can be withdrawn only after i get the possession of the property?


  114. Hi Basu,

    I had taken a loan of 30L for 20 years in 2014. I have been adding surplus amount to the max gain account. Now it so happens that I have the entire surplus & want to park it in my max gain account so that it can be available for any of my future needs. My query is:
    1. If I put all the 30L in the max gain account account then what happens to my EMI of 30K. What amount will go as principal and what as interest (if I understand interest will be 0).
    2. Will I have to close the account mandatorily as I don’t owe anything as interest ?

  115. Hi ,
    My online MG loan statement looks like this :

    Description SBI HL MAXGAIN OD (WOM-OCT15)
    Book Balance -16,06,122.00
    Available Balance 4,93,878.00
    Limit 21,00,000.00
    Uncleared balance 0.00
    Drawing Power 21,00,000.00
    Currency INR
    Rate of Interest (% p.a.) 9.5%
    Lien Amount 0.00

    It has been partly disbursed loan of amount 1600000/- on 2nd december 2015.
    on 31st dec 2015 SBI has deducted an amount of 12073/- from my OD account (is it interest as i think for dec month ?) , then my first EMI of 18899/- deducted from my saving account on 20th jan 2016. After that, an amount of 12073/- was credited to OD account on same day.
    Now on 31 jan 2016 they have deducted 12948/- from my OD account and above statement is generated.

    My first query is if it is interest then how it is increased than dec month as some principle me have reduced ?

    Now in my OD account, available balance is 493878/- . i have submitted demand note of 500000/- to bank on 25th jan 2016.

    my 2nd query is bank will pay the builder 500000/- (remaining loan amount) as it is short of some amount ?

    Please assist………


    1. Ashok-Why they debited and re-credited the interest amount of Rs.12,073? No, they will not disburse Rs.5,00,000 as the available balance is less than that. But you have to discuss with SBI officials regarding this transactions.

      1. I have asked SBI for this debit – credit funda of account.
        they say every month it will deduct interest on last day and will credit on EMI credit day ….
        But how this amount is increased for the month of january ?

  116. Hi Basavraj ji,

    Thank you for your valuable post.
    I have taken HL of Rs. 37.5 Lacs on dated 16th Dec 2015. Following transactions occurs in my account:

    Interest Debited on 31st Dec = Rs. 15585
    First EMI debited on 18th Jan = Rs. 32081 (deposited in OD account)
    Amount Deducted on 31st Jan from OD account = Rs. 44634 (Rs. 29233 is interest part and Rs. 15401 is principle part)

    When I asked SBI officers, how they can deduct Rs. 44634 from my account as my EMI amount is Rs. 32081?
    How they can charge me higher amount than EMI?

    Then SBI Officers replied me that additional deduction in each month and principle amount will be deposited on next EMI date.

    Dear Basavraj ji, may I know is it the working way for max gain account??

    Waiting for your reply…

    Thank you…

  117. Hi,
    I have part of my loan disbursed as part of first disbursement from my maxgain OD account for a under construction property. Now whenever demand from builder comes, the amount has to be disbursed from bank.
    As I see my non-disbursed amount in available balance and I have transaction right on that amount, can I myself disburse the amount on demand made by builder without requesting bank to do so?
    Is it legal? Or I should not have transaction right at all on OD account at first place and it is a mistake in system?

    I need to know this as I have demands made from builder and even after multiple reminder to bank, fund has not been disbursed. I am thinking of making NEFT transfer to builder myself from the OD account.


  118. Hi Basavaraj,

    All the posts are very much useful in terms of knowing everything about MaxGain Scheme.

    I have one doubt here,

    Let’s say i have taken 10L of loan for 20 years and my EMI is 10k
    Every year i am placing 2L in my Maxgain account and one fine day my available balance is equal to my outstanding principal amount in just around 5 years then if i am not wrong then i can ask for HL account closure.. correct?

    This question just came into my mind because you said although we place surplus amount, EMI and tenure never changes.

    Please help answering this
    Thanks in advance!


  119. Hi Basavraj

    I have SBI Home Loan of RS 30 Lakhs. I often park surplus amount in MaxGain OD account and get benefit on interest. By parking amount in OD account, neither my principle gets reduced not the tenure.Now I want to prepay towards home loan principle of RS 1 Lakh. I don’t want this 1 Lakh amount to be parked in OD account. I want to pay it towards Principle so that total loan tenure gets reduced. But when I visited home branch and asked for the same, they said ‘I can not pay RS 1 Lakh towards Principle. I will have to pay minimum 20% of total home loan amount i.e. 6 Lakhs’. I feel their reply and explanation strange. Actually I should be able pay any amount towards principle to reduce the home loan as other banks do. Your expert comments about these rules will be really helpful. Can you please comment on the same.

  120. Hi Basavaraj,

    I took 40 lakhs loan under SBI-MAX GAIN and paying monthly 40 thousand EMI
    My house is under construction and Don’t have house possession. I have saving around 20 lakhs
    My question is I want to reduce my current EMI to 20,000 from 40,000 thousand by re-paying 20 lakhs
    Is it possible to reduce EMI to 20,000 ? (currently its 40 thousand and i want to change it to 20 thousand)
    (This re pay is not same as parking in OD. once I pay to bank, they will take from OD permanently and my drawing power changed to 20 Lakhs )

    Please suggest.

        1. Sir I received the cheque from bank bank credited money my account aviliable balance showing same and net balance column showing same is it safe

  121. Dear Basav

    I found your post is very informative and useful.

    I own a SBI-MaxGain HL (OD) account and EMI has been deducted regularly.

    This account started on Nov-2015 with the below structure (At the time of EMI deduction)

    Book Balance: -27,19,813
    Available Balance: 0
    Drawing Power: 27,19,813
    ROI: 9.35%
    EMI : 30,000

    After the EMI deduction, the structure had changed as below.

    Book Balance: -27,10,655
    Available Balance: 0
    Drawing Power: 27,10,655

    It means, from the EMI(Rs.30,000) – Rs.20,975 deducted towards Interest and Rs.9,158 moved towards Principal.

    Now, I parked Rs.6,49,000 as Surplus amount during the Mid of Dec and the account balance structure got changed as below;

    Book Balance: -20,61,655
    Available Balance: 6,49,000
    Drawing Power: 27,10,655

    Now, EMI for Dec month has been deducted and the structured changed as below;

    Book Balance: -20,51,442
    Available Balance: 6,52,096
    Drawing Power: 27,03,538
    ROI: 9.35%
    EMI : 30,000

    The distribution of the EMI is: Rs.19,787 deducted towards Interest and Rs.7,117. And 3,096 has been moved to the Available Balance.

    Here are by doubts and seeking your help on getting those clarified;

    1) When comparing the Nov and Dec EMI amount distribution, I could see interest deduction got reduced a bit as I have parked surplus amount. However, I expect principle deduction from EMI should be increased. But i got drastically reduced. Not sure about the reason.
    2) If the principal payment got reduced as mentioned above my overall tenure will get increased and I do not see any benefit of parking the amount just to gain the interest of the surplus amount but increase in the tenure.

    Please let me know your view on the above EMI deduction and structure I depict. I doubt if the variation is due to the mistake from SBI side.
    I need the expert advise to understand the things better before discussing with the bank officials.

    Thanks and appreciate your effort in advance.


    1. Geetha-1) Check whether your principal amount reducing as per amortization table they shared with you. If they not shared, then ask for the same and cross check.
      2) When you park surplus, neither your principal amount will change nor the loan tenure.

          1. Basav,

            I contacted the SBI bank and got the Amortization table as below;

            Due Date Principal Due Projected Interest Total Repayment
            30/11/2015 9345 18813 28158
            30/12/2015 7117 21041 28158
            30/01/2016 6479 21679 28158
            29/02/2016 7968 20190 28158
            30/03/2016 6646 21512 28158
            30/04/2016 7384 20774 28158
            30/05/2016 6757 21401 28158
            30/06/2016 7493 20665 28158
            30/07/2016 6870 21288 28158
            30/08/2016 6925 21233 28158
            30/09/2016 7656 20502 28158
            30/10/2016 7041 21117 28158

            The principal amont is being deducted as per the structure mentioned in the above table.
            However, I am not sure why there are variations(Ups and downs) in the Principal deduction on every month?!
            I thought, principal deduction will be increasing and interest deduction will be decreasing as like the normal housing loan.
            Please clarify, if anything need to be corrected from bank end. I asked this question to the bankers, however they are not sure about this deduction model.


            1. Geetha-Even I too surprised by looking at principal component of table. As the loan turn older, the principal part REDUCES. Hence, it leads to more payment towards principal than interest at later stage. Check with SBI.

              1. My home branch people are not able to explain about this structure. There is no proper response from them.
                Is there any other way to get things corrected/clarified?

                1. Geetha-Write a registered letter and send email communication them for clarification. If then too they react with thick skin, then visit your nearest branch to ask for explanation. Let me know the status to discuss further.

                  1. When I checked with the branch manager, he told that, the ups and downs in the principal could be due to the variation in the number days in the month.
                    Oct-15:31 days
                    Nov-15:30 days
                    Dec-15:31 days
                    Feb-16: 29 days

                    But I am not convinced with this answer from him.
                    Please let me know your thoughts.

                    1. Geetha-I too..because one day’s variation is not effect into such high difference. Also, I never saw EMI going up and down due to days vary in a month. Strange. Why can’t you write to SBI ombudsman?

              2. Hello Sir,
                I have observe principle up and down in attached excel as well.
                Can please help in understanding it.

  122. Dear Basavaraj,

    Thanks for this detailed explaination about the SBI-Maxgain account and it benefits.
    As for as I know few of bank officials are not able to explain as like the insight you gave.

    I have few things to get clarified from you and the they are listed below;

    1) As per the point you mentioned “EMI and tenure of the loan will never change during the course of a loan tenure”
    I am not able to understand how the tenure will be retain same with the following case.

    Book Balance: 10,00,000
    Available Balance: NIL
    Drawing Power: 10,00,000
    EMI : 30,000

    The EMI includes the principal part towards (DP)Rs.10,00,000 + Interest part for (BB) Rs.10,00,000.
    With a rough calculation. Say, 20,000 is deducted as Interest and 10,000 is deducted as principal.

    Book Balance: -7,00,000
    Available Balance: 3,00,000
    Drawing Power: 10,00,000
    EMI : 30,000

    The EMI includes the principal part towards (DP)Rs.10,00,000 + Interest part for (BB) Rs.7,00,000 + Surplus interest part for (AB) Rs.3,00,000
    Say, 15,000 is deducted as Interest and if remaining 15,000 from EMI goes to principal payment. Now, I am not able to understand how the tenure will remain the same.
    As the deduction from EMI towards principal is increased, I thought I will reduce the HL tenure.

    Please clarify me if my understanding is wrong.


  123. Hello Sir – Have a query regarding SBI Maxgain home loan. I have taken a loan of 60 L which got sanctioned in Dec’15. Post my home loan approval, I opened a new savings account with SBI bank and linked my maxgain home loan account. With the help of internal transfer, I transferred Rs. 8 L to my homeloan. But on 31st Dec – SBI deducted Rs. 43K as debit interest from my maxgain account and my surplus amount which I parked in the homeloan reduced to 7.57 Lac. My first EMI was to be deducted on 10th Jan but due to ECS clearance problem the EMI didn’t get deducted and now its scheduled for next month onwards. How can I pay EMI for this month and when will I get my debit interest amount back? Kindly help.

  124. Hello Sir,

    I have max gain account with SBI. My home loan is for construction linked plan and I am still waiting for possession after 6 years. Looking from previous Q&A, it is clear that I can’t take all benefits for maxgain account.

    I have one basic question.

    I have surplus amount. I want to use this surplus amount to actually prepayment of my principle amount rather then parking in account and earning interest on that.

    Is it possible in max gain account? if yes then how?

    -Girijesh Haritwal

    1. With MaxGain account, which acts like overdraft account, you can actually park your excess amount. The computation for interest is daily. So suppose if you have 50L loan but you park 10L there; the interest charged to you will be for 40L (and not for 50L).

      But note that the parked money cannot be withdrawn unless your construction is complete and ready to possess.

  125. Hello , I took Loan of 2100000 and choosed the Maxgain . I deposited the 30000 so that i thought My intrest will be calculated based on that and i can withdraw when i needed it . But i cannot see that 30000 in the available balance and it shows as 0.

    The statement is not clear and our branch manager told once after my EMI taken i can see it back but strange is they did not take the EMI from my account this month even though i have sufficient balance .

    Do u have any idea ? and i can really say that even SBI branch managers dont have much idea on Max gain products .

  126. Dear Basu,
    My SBI Maxgain home loan branch is too far from my residence and it is huge trouble to take out the time and visit branch for anything. I have been requesting the branch officials for branch change to any of my nearer branches but they have always ignored.
    Can you please let me know whether i can change my SBI HL branch? If yes, then what is the procedure?

  127. Hello Basavaraj!

    Helpful post. What is the interest amount we get on any amount deposited in the SBI Max gain Account, 4% or 8%


  128. Hi Basavraj,

    Know this is the very old post but i have an unique issue on which i think you can help me.

    I have SBI Maxgain loan account. Loan sanctioned amount is 29,15,000 Rs. I have got this account linked to Online SBI.

    Whenever look at my details my Drawing power is showing as 28,58,142. i have been paying EMI’s regularly from the first month itself however the principal reduction does not happen in Drawing power. Not able to understand why. When i look at interest certificate it does show that the Principal amount has been deducted.

    When i take out the statement it shows “Credit Bulk Posting” on EMI date and “Debit Interest” on 30th of the month. Not able to understand what is the issue.

    Can you please guide us as to what can be done here.

    Thanks in advance!


      1. Sachin

        Did you check with the bank officials, I see the same issue in my case, infact for me the sanctioned amount is the Drawing Power amount still after 1 1/2 yrs of EMI payment.

        I got to speak to the bank officials.


  129. Hi Basavraj,

    Thanks for the illustrative explanation on SBI Maxgain.
    I’ve 32 L loan from max gain and parked 10 L of surplus amount in the account.
    Actual EMI is 32375 and interest will be deducted on 25 Lakhs & rest will go in the principle.

    So after this financial year when I will get my loan certificate generated, will it reflect principle amount which is including the amount saved through 10 L of surplus amount parked in the account for the year.
    If yes, then I can claim this principle amount for tax benefit ?

    Please clarify.

    Atul Singh

  130. Dear Mr. Basavaraj,
    I had taken SBI Maxgain loan of INR 39.9 during Aug 2012, at that time interest rate was 10.4% and EMI informed as was INR 40,508.00, as of now drawing power is 37,59,405.00 and book balance is -29,75,625.00 but though EMI is intact I am still seeing that money contributed towards principal loan is same which should be more keeping in mind the reduced interest rate (9.7%) and surplus amount which is around INR780000.00 in my a/c.
    Could you please help me understand few questions like.
    1. Is there any wrong calculation done by SBI as I heard that they still use manual way to calculate interest?
    2. Since interest component of remaining loan amount i.e. 29,75,625.00 is around INR25000.00/ month but EMI is still at INR 40508.00 then where the excess amount i..e INR15000.00 is going? I really dont understand this.
    3. What is amortization table? and how it will help me to understand the money flow.

    Thanks & Regards,

    1. PK-Ask your bank officials about the schedule of EMI amortization table and also the past payment history. They will give it and if possible explain it. Amortization table is nothing but how your EMI will be break between principal and interest. This will give you a clarity.

  131. Hi Basavaraj,

    Till now Bank has disbursed only 12 lakh out of 46.4 lakhs and have started paying full EMI of 46k from initial disbursement date( from June 2015) i.e 46,000 * 7.. Its been 7 months now, when I checked the bank statement, only 48k has been moved to priniciple..

    I believe interest for 12lakh will be less and remaining amount will goto the prinicple but I dont see ..

    Please let me know whether remaining amount apart from interest from full EMI will go to available balance or priniciple amount?

    1. Giri-When they ask for EMI start date, then you might have given option of from the first of first loan disbursement. Based on that, they might have calculated the EMI. So in my view they are right. If you have doubt, then ask for the amortization table.

  132. Hi Basu,

    First of all thank you for posting such as excellent blog. I have learned so much. I have one basic question.

    – The surplus interest part which is kept in an available balance (after parking the surplus money in the account)- Is that surplus interest taxable by any means?


  133. Hi Basavraj,

    I have availed SBI max gain home loan of 4640000. Flat is under construction and will get possession probably in 2018.

    Can I have transactions rights to credit/debit surplus amount to OD account? If not, How to deposit to OD account? Also, Can I take surplus amount deposited during construction period?

      1. Basav,

        I have two questions

        (1) Is Form 12C should be submitted when we submit 2 loan details in case if I am paying two loans

        (2) My details on loans:

        I have a loan repayment with a bank with provisional reading for this financial year (2015-16)

        Principal- INR 91,929.97 and Interest-INR-65,990.03 where I am not getting any rent as only my family are staying in there.

        for my second housing loan with different bank
        Repayment towards Principal Rs. : 60348.00
        Repayment towards Interest Rs. : 176328

        So far, I have not entered my second loan with my employer yet as I have to submit Form 12C. Please let me know if disclosing second loan will be beneficial

        My Tax statement so far from my pay-slip shows as:

        Hsg Loan Interest – 65,990.00
        Chapter VIA relief 1,69,780.00

        Could you please confirm if I can entered my second housing loan and submit Form-12C ?

          1. Dear Basavaraj,

            I even submitted the form last year. Irrespective of that, Can I still declare my second loan now

                  1. Thanks for clarification!!. Last time, they forced me to submit Form 12C.
                    If I declare my second loan, Can you please confirm if I can still save more tax ?

                    1. Can I still save more tax if I put up my second loan ?

                      My Details:

                      Principal- INR 91,929.97 and Interest-INR-65,990.03 where I am not getting any rent as only my family are staying in there.

                      for my second housing loan with different bank
                      Repayment towards Principal Rs. : 54209.00
                      Repayment towards Interest Rs. : 179767.44

                      My Tax statement shown deductions:

                      Hsg Loan Interest – 65,990.00
                      Chapter VIA relief 1,69,780.00

                    2. Ramanathan-You will tax benefit by showing it in your IT return. But I don’t think what benefit it will give you by showing it to your employer. Also, I am still pointing that submitting such information was removed long back. Hence, I don’t know the reason of asking such information from your employer.

                    3. Ramanathan-Please show them the ruling that submitting Form 12C was removed. Also, submitting second information to IT department will save tax than submitting it to your employer.

      2. Thanks Basavaraj!

        Have one more question.. Till now Bank has disbursed only 12 lakh and have started paying full EMI of 46k from initial disbursement date.. Its been 6 months now, when I checked the bank statement, only 48k has been moved to priniciple..

        I thought interest for 12lakh will be less and remaining amount will reduce the prinicple but I dont see reduced..

        Please let me know whether remaining amount from full EMI will move to available balance or priniciple amount?

        1. Giri-When they ask for EMI start date, then you might have given option of from the first of first loan disbursement. Based on that, they might have calculated the EMI. So in my view they are right. If you have doubt, then ask for the amortization table.

  134. Hi Basavraj,
    Thanks for the excellent article and clear info.

    If currently one has the money to finance his house purchase without loan, but is considering still taking Maxgain loan say of 40 lacs –
    Motivation – Will mostly need the money after a year or so for some other investment in commercial property for business or something. (not 100% certain but likely).

    So wondering if its better to go with Max housing loan, instead of using ALL own funds – so that can use that liquidity later for commercial property etc.. (since if use own funds now, and then need to take a loan, int rate will be higher and i guess no tax benefit also)

    So say, one take the loan, since he has surplus amount (almost as much as the loan amount or close to it) right at the onset – he parks it in max gain accnt. Now for this temporary period, because of this surplus parked, there is no outstanding loan amount.

    As you explained, i believe since he is not closing his loan, he still needs to pay the FIXED EMI amount, though interest amount from it will be 0, Is that correct? Or does his payment stop for these months, and restart if he withdraws the surplus?

    If the EMI still needs to continue, I guess there could be a situation where he has parked more funds in the maxgain accnt than his outstanding loan. So does he earn interest on that?

    Or is it the case that he is still paying EMIs every month while the surplus in the accnt is equal to the outstanding loan amount… and the EMIs keep increasing the surplus, but not earning any interest?

    For situation explained above, does it make sense to take a loan now, considering that hsg loan int rates are lower and get tax benefit — to preserve own funds so that they can be used for future business/commercial investment.

    Your insights on this will be very valuable.
    thanks a lot.

    1. Sameer-When the outstanding principal and available balance is same, then there will be no interest payment from your EMI. However, they collect the regular EMI and the interest part of that EMI will be again debited to available balance (this is the earning on your surplus parked). As the available balance is more than outstanding principal but the EMI interest part is zero and it again reflect into available balance. However, the additional amount of difference (positive value) between Available Balance-Outstanding Principal will not earn any interest. Only that part of amount will not earn any interest which is more than the difference between available balance and outstanding principal.
      If you really have cash, which you need after a year or so, then go for SBI Maxgain. However, don’t go for home loan or buying property with the intention of interest rates or low and you SAVE TAX.

      1. Hello Basavaraj, I have the same question as sameer -ie have the funds for the home buy want to use it as surplus amount same as the loan amount.
        My question is does the drawing power reduce by the amount of principal amount ever month from the EMI for that month and will the available balance increases with the full EMI amount ,
        if so, than we can be in gain by use this sbi max gain account……………………………..

          1. Hi Basavaraj,
            Thanks for the promt reply,and appreciate the good work u are doing.
            To elaborate my question in detail
            Loan amount – 25,00,000
            Tenure – 10 yrs
            EMI=33,038 (Int-20833.33 & Pri-12204.67) for the first month.

            and my O/D account is


            So after paying the EMI for the first month,will my o/d account be
            D.P- 2487795.33

            or will it be


            Now my question was, (after paying EMI for the first month)
            Does D.P reduce by the principal amount of the first month EMI,(ie- 2487795.33)and
            Does A.B increase by the whole principal amount of the first month EMI,(ie- 33038) or ?

            Also can i request the bank to charge me the full amount of the EMI as the principal part.

            Your insights on this will be very valuable.

            Thanks and best regards

            1. Hi Basavaraj,
              Some correction to my previous question.
              Now my question was, (after paying EMI for the first month)

              Does D.P reduce by the principal amount of the first month EMI,
              (ie- 2500000-12204.67 = 2487795.33) and thus over the full tenure the D.P will be zero.
              Does A.B +B.B increase by the whole amount of the first month EMI,
              (ie- 2500000+33038 =2533038) or ?
              and i can then again use the money – ie difference between D.P and A.B which is same as the EMI,as the next month EMI and do that thru the entire loan tenure
              To my understanding of Max gain- if D.P – A.B =0
              and if every month the D.P is reducing by the principal component after paying the EMI , and the A.B +B.B is increasing by the full EMI amount.then ……………………………

              Sorry if im complicating this issue.

              Your insights on this will be very valuable.

              Thanks and best regards

              1. Hi Basavaraj,

                I’m a NRI and when i come back to Mumbai(shortly),wish to invest in another home.
                Sorry for the numerous queries,Last time around when i was in Mumbai,and approached SBI,as usual most of the SBI staff are not fully familiar with the max gain scheme,as by of now you are very well aware about that fact.Hats off to you.
                So for eg
                Loan amount – 25,00,000
                ROI – 10%
                Tenure – 10 yrs

                Case 1.
                Loan amount = Surplus amount ie DP – AB =0
                Will not pay any EMI for the full tenure ie 10yrs( if possible)
                Keep the surplus in case of some emergencies/rainy day or when a better investment opportunity arises.
                Living stress free and earning till i have enough money,when i feel that i dont really need the surplus amount then only will i close the loan.Earning thru rent and appreciation of the flat.


                Case 2.

                Now i will pay one EMI for the first month,and this EMI will be then remitted back to my O/D account,But Now
                EMI=33038 (Interest – 20833.33 & Principal = 12204.67 for first month)

                I will now use the B.B amount to pay for the next month EMI and so forth….
                Hence reducing the DP and slowly paying off the loan amount,keeping the surplus in case of some emergencies/rainy day or when a better investment opportunity arises.Earning thru rent and appreciation of the flat.

                Also MONEY SAVED IS MONEY EARNED.

                s0 kindly advice me which of the 2 cases according to you is wiser.

                Appreciate your time,patience and advice regarding this matter.

                Wishing you a prosperous New Year in advance for Health, Wealth love and Peace.

                Thanks and best regards

                  1. Hi Basavaraj,
                    Thanks once again for ur reply,
                    Firstly im an investor and have already 3 properties (Flats in bandra,Mumbai(on rent) & Kalyani nagar,pune(on rent) and a bungalow in Margao ,goa) and the value of 25,00,000 was just as an example and also have stock holding in india over 75 lac(current market value) also im interested in buying a property in prime location resale property and have studied about the area and the rent factors,so assuming all that my facts are intact (fingers crossed)
                    Kindly advice me about my cases and any other bank where they have the same facility but the process is a bit faster,
                    Since i have a NRE account with SBI was planning to go for SBI max gain this time around.
                    Thanks and best regards

                    1. Hi Basavaraj,
                      Since you are Certified Financial Planner by qualification,m seeking ur advice ,if u think real estate as an investment is not good,can u advice me on something,i have stock holding with motilal oswal securities,Also your from bangalore and im from mumbai and with time constrains else it would have been a pleasure to meet u in person as ask u advices

                      So kindly bear with me,

                      Thanks and best regards

  135. Hello !

    I am planning to take a home loan to buy an under construction flat. Amount around 30 lakhs.
    Can you please advise if I should go for SBI MaxGain or normal home loan?


    1. Rohit-If you feel that during loan tenure you are expecting some cash apart from your regular income, then you can go for SBI. Otherwise, I don’t think it makes any difference between SBI MaxGain and regular home loans.

  136. Hi Basavaraj,

    I have availed of the SBI H L MAXGAIN OD for a balance transfer from my earlier Home Loan which I had with Standard Chartered Bank. My initial loan approved amount from SBI was Rs. 30,12,000.00, however I only availed Rs, 29,81,352.00. Later an amount of Rs. 573.00 was added for some charges under the header ‘CERSAI charges’. I seek your help in understanding the below :
    1) If I make an online payment from the balance that I maintain in my Maxgain account, will I be charged for the online payment.
    2) As you mentioned, an ATM card would be provided which would be chargeable for any amount withdrawn from a non SBI ATM. Would any charges be incurred if 1 withdraw the money from a SBI ATM?
    3) In addition to ATM card, would I also be provided with cheques or a debit card?

    Sorry for the no. of question? Thanks nonetheless for a very informative and insightful article.

  137. I have taken a home loan from SBI for a 3 bhk apartment in an under construction property. The sanctioned loan amount is 65 lakhs and out of that, 30 lakhs has been disbursed by the bank till now. In my MaxGain account, I have parked my excess funds of 20 lakhs to reduce the interest burden. So right now the book balance is -10 lakhs and available balance is 55 lakhs. Now I have decided to upgrade to a 4 bhk apartment in the same project and I would like SBI to make use of my excess funds while disbursing the pending instalments to the builder. In short, I want the current available balance of 55 lakhs to be utilized completely for the future disbursements. I know that transaction rights will be enabled only after property registration. But in this case, I am asking whether the bank can release the amount directly to the builder as part of the scheduled disbursements.

    Thanks in advance,

  138. Dear Mr Basavaraj,

    Thanks for this wonderful message. With an idea of changing my present home loan account to Maxgain, i enquired at SBI branch today. They cited a circular saying that this feature is available if outstanding home loan amount is above 20 lakh. I had taken a loan of 19.9 lakh only and hence not applicable to me. Requesting for your inputs on this.


  139. Hi Basavaraj,

    It is really appreciable that you take time to reply each and every comment.

    I have taken SBI Maxgain loan of 30L+84000(Maxgain suraksha Policy).

    I opted for full EMI. Property is under contruction . posession after 2 years.
    Disbursed 6,06,145+ 21,215 amount to builder till now.

    I could check 3 accounts when logged in online. Savings, Maxgain(OD), Maxgain Suraksha.

    My queries below:-

    1) I could check some entries as DEBIT INTERSET. I have checked on forums but not able to understand this. Could you please suggest if below transactions in OD(Maxgain) are GOOD Or something catchy that it should not be there.
    2) How can I calculate this debit interset amount by myself to confirm that it is correct.
    3) Do I need to transfer money (Credited as EMI here in OD account) to some other account(Savings or Maxgain Suraksha) to repay home loan and policy respectivley.

    Please find transactions happened in account till date as below:-
    Debit Credit

    30-Nov-2015 (30-Nov-2015) DEBIT INTEREST 4,670.00
    10-Nov-2015 (10-Nov-2015) BULK POSTING BY SALARY 29,151.00
    31-Oct-2015 (31-Oct-2015) DEBIT INTEREST 3,996.00
    07-Oct-2015 (07-Oct-2015) TO TRANSFER PATEL ASSOCIATES 21,215.00
    07-Oct-2015 (07-Oct-2015) TO TRANSFER PATEL ASSOCIATES 6,06,145.00
    31-Aug-2015 (31-Aug-2015) DEBIT INTEREST 19.00
    11-Aug-2015 (11-Aug-2015) BY CLEARING / CHEQUE HDF 6,500.00
    11-Aug-2015 (11-Aug-2015) BY CLEARING / CHEQUE HDF 570.00
    01-Aug-2015 (01-Aug-2015) DEBIT Comm Recov 6,500.00
    01-Aug-2015 (01-Aug-2015) CERSAI charges 570.00

    Also I could check OD account details as below:-

    Book Balance -6,06,894.00
    Available Balance 23,53,727.00
    Limit 29,60,621.00
    Uncleared balance 0.00
    Drawing Power 29,60,621.00

    AND MAXGAIN Suraksha account details as below:-
    Limit 84,000.00
    Drawing Power 0.00
    Outstanding Amount 0.00
    Rate of Interest 9.3
    Currency INR
    C.Y.YTD Interest 0.0
    P.Y.YTD Interest 0.0
    There is no financial transaction available for online display for the selected account.

    I just wanted to confirm if everything is normal with my account.

    Thanks in Advance!

    1. Anup-1) It is hard for me to go for each of your transactions and arrive at balance. If you have doubts on any particular transactions, then better to check the same with bank officials.
      2) Interest will be for that part of principal. It is set based on amortization table.
      3) I don’t think manually you have to do. They might have created auto debit option.

  140. Hi Basavaraj,

    My loan 40.8L sanctioned in Sept’15.
    Int rate: 9.35%
    Tenure: 240 mon
    EMI: 39,770.
    EMI debit date: 10th of every month.

    Now EMI of 39770 has been debited on 10-Oct and 10-Nov from my savings.
    Also at the end of every month, these amounts have been debited from my Savings account
    32838 – Sept
    31752 – Oct
    30205 – Nov
    I have made a surplus transfer of 1L on 30-Oct as well.

    After 3 months, my Drawing Power amount is not reduced and still showing as 40.8L.
    Available balance: 1,61,580.00
    Book Balance: -39,18,420.00

    My questions:
    1. why my drawing power is unchanged for 3 months ?
    2. what is the amount being debited from my savings every month end apart from EMI 39770 ?
    3. how is my available balance 1,61,580 where the surplus amount I sent is only 1L ??

    Sorry for multiple questions. (this MAX gain plan is really confusing 🙂 )

    — Chaitanya

    1. Chaitanya-1) When you deposit additional cash into OD, then drawing power will not reduced as it is the original outstanding principal balance. It reduces only when you pay any amount towards it (either through monthly EMI or pre-payment towards principal). What changes is your book balance. Based on book balance, your interest is calculated. So they are correct.
      2) They will not debit any additional amount apart from EMI.
      3) The interest saved by depositing the amount and any un-disbursed amount will be taken into account to show the balance in available balance. For more clarification, you can contact bank for this.

  141. Hi Basavaraj,
    SBI has sanctioned a loan through Max Gain of 25 L and 22.5 L was disbursed ,
    my loan tenure is 252 months and monthly EMI is Rs 24022, as I noticed only interest rate is deducted instead of EMI.
    Every month I deposit 1 L in the A/C. It is possible to deduct the additional balance amount against principle amount so my tenure or EMI will be reduced, moreover 2.5 L is still not disbursed & its also not required how I can repay/cancel it

    1. Parvez-If you are paying the full EMI, then they must adjust towards principal too. If you deposit Rs.1 lakh every month, then they kept it in available balance. This will not change your EMI or loan tenure. You have to inform the bank about your repayment towards the outstanding principal. If you don’t need Rs.2.5 lakh then inform the bank about the same to adjust towards the disbursed loan amount. This will reduces your EMI.

      1. Thanks for our reply, if surplus amount is deposited in the account frequently & request bank to deduct towards outstanding principal, is the principal amount is reduced (eg: Loan disbursed 22.5 Lakh & after 5 months lum some amount is deposited in the account eg 5 Lakh- & repayment is done so outstanding balance is 17.5 lakh) how frequent surplus deposited amount can be repaid towards the outstanding principal, As I want to clear the loan early. As per your information EMI & loan tenure will not change, so how can I clear it Early. Normally EMI or Loan tenure will be changed or adjusted whenever surplus amount is deposited & request for repayment towards outstanding principal, kindly clarify.

        1. Parvez-Yes, you have to inform them that to adjust towards the principal. However, I feel many banks have restriction on number of just payout towards principal during loan tenure. Check the same for SBI MaxGain. When you deposit surplus towards principal, then either tenure will change or EMI. I said both will not change only when you deposit surplus in available balance.

          1. Once Again tanks for reply, do we need to show the bank statement as I am a NRE for repayment towards principal, as my salary is not directly credited to SBI

              1. I have noticed through my bank statement only interest amount is deducted rather than EMI which includes Principal+interest. I had informed bank manager in this matter, he said it was a mistake but still it is same since the start of loan payment. 25 lak was sanctioned as loan & only 22.5 lak was disbursed, my EMI is 24022 for 252 months. Is the EMI calculated on 25lak or 22.5 lak. As per EMI calculation formula it is incorrect. Kindly clarify

  142. Hi Basavraj,

    I have transferred my loan to SBI Maxgain on 16th Nov. The sanction loan was 23L (i gave the closer quote for 23L) and the EMI is 21900/- . I have made 3L repayment to old bank before i move the loan. So SBI disbursed only 20L to old bank.

    1. I would like to correct my EMI as per disbursed loan. Can SBI reduce it if i write a letter ?
    2. How can i surrender the “Available Balance of 2.86075.00 back to bank as i dont want to take this money.
    3. On 30th Nov i can see the transaction of “DEBIT INTEREST 7,872.00 ” Any idea what is this amount?

    Description SBI H L MAXGAIN OD (OCT15)
    Name Mr. PATIL
    Book Balance -20,13,925.00
    Available Balance 2,86,075.00
    Limit 23,00,000.00
    Uncleared balance 0.00
    Drawing Power 23,00,000.00
    Currency INR
    Rate of Interest (% p.a.) 9.55%
    Lien Amount 0.00

    Date (Value Date) Narration Ref. No. Debit Credit
    30-Nov-2015 (30-Nov-2015) DEBIT INTEREST 7,872.00
    23-Nov-2015 (23-Nov-2015) CERSAI charges
    38976288 573.00
    16-Nov-2015 (16-Nov-2015) TO TRANSFER
    STAMP AC 5,480.00
    16-Nov-2015 (16-Nov-2015) TO TRANSFER
    HL DISB-BC FVG LICHFL 20,00,000.00

    Sorry for multiple questions and thanks in advance

    1. Patil-1) If you want to change your EMI only on Rs.20 lakh then pre-pay the amount available in “Available Balance”. They sanctioned you Rs.23 lakh loan. They paid Rs.20 lakh to old bank. Remaining Rs.3 lakh was kept in available balance. But EMI was calculated on Rs.23 lakh only. So you have to prepay the Rs.3 lakh and let bank reduce the EMI.
      2) You have to inform the bank.
      3) It may be interest part of your EMI.

  143. Hi,
    Recently on 18th Nov’15 I took a Max Gain HL. The construction is completed and the builder is handing over the flat. As such The total amount of the HL of Rs4681000 was given to the builder . I took the loan of Rs4681000 and I had had also taken loan for interior work Rs 519000. So altogether a loan on 5200000 was sanctioned. On day one I could see the statement as
    Book Balance : -4681000
    Available Balance :519000
    limit : 5200000
    Uncleared Balance: 0.0
    Drawing power: 5200000

    On 30th Nov’15 I could see that Rs 28169 was debited as “Debit Interest” and now the statement is seen as:

    Book Balance : -4709169
    Available Balance :490831
    Drawing power: 5200000

    My EMI date is 10th of every month which as to start from Dec.
    The interior work amount is not claimed by me yet as I have yet to start it.

    Just wanted to know what happened here?
    1. Why Rs28169 was debited as “Debit Interest”
    2. The amount for the interior work was initially Rs519000. So does that mean that now my Interior work amount limit is 490831

  144. Hi Basavaraj,

    Thanks for all your efforts here and he support provided is unmatched.

    My case is also not very unique – but another sbi max gain home loan – 30L, which was approved in apr’14 and paid interest for partial amount released till oct’14 and started the original repaying emi of 30k from nov’14, which is for 2oears. My query here are two fold:

    1. Availing Benefits of Max Gain OD account.

    a. Is the Max gain OD account same as the SBI account I opened for the HL purpose? Or is there any other account to be opened for this purpose? There is also a HL account No associated with my HL – does this suffice?

    b. If i park all my savings in the SBI – and save on my interest payable, will the applicable surplus interest be credited to my account? Or does this needs to followed up with bank? Or will they adjust to my HL amount itself?

    c. What would be the recommended way o track my SBI MG HL details ? I am no having any information on this – other than the emi deducted. With the RACPCs at SBI are not very customer friendly, I am looking at suggestions for managing my loan better.

    2. Floating Rates

    a. even when the interest rates are reduced drastically over last one year, my emi remains just the same? Is this the way it should be in a floating rate concept?

    b. When enquired with the bank, they advised that it would be adjusted later! Again the not-so-customer friendly atmosphere effect.

    thanks in advance,

    Roby Mahew

    1. Roby-1
      a) OD account refers to the available balance amount where you park surplus and withdraw (exactly like your bank savings account).
      b) Any interest earned from parking in OD will be paid back into available balance. This you can utilize at any point of time without any issue.
      c) Regular view of statements.
      a) It is purely a bank’s call either to reduce or increase the interest rate. If your home loan interest rate reduced but the same is not reflecting in your EMI, then they may reduced the loan tenure. Check with bank.
      b) Why? They must show the details to you NOW itself.

  145. hi sir,
    we have taken sbi max gain HL.
    we are also transferring some extra amount to OD account sometimes other than emi. do we have to pay income tax for this deposit in OD account? this money is getting transferred from NRI account. Please guide.

    1. Rahul-Taxability of interest saved in MaxGain is not taxable. You are merely paying less interest towards your loan but not earning from bank. Hence, no question of income and tax on it.

  146. Dear Basavaraj Tonagatti, I have no query as of now; I just wanted to appreciate your efforts and your time to reply queries of several people and that too in clear and detailed manner. Keep up the good work. Wish you all the best. I will get in touch in future as I may require your help regarding home loans etc.

  147. Hi Basavraj, Thanks for the clear information on benefits of MaxGain.

    In case, if my regular EMI is Rs. 30,000 and I am deducting Rs. 35,000 towards my EMI; so in that case a remaining amount of Rs. 5000 will go in Surplus amount or will that help to reduce the tenure of you EMI.

    Please could you suggest.

  148. Hi,

    Thank you very much for providing in details regarding Home Loans and other financial Matter.
    I have a normal SBI home loan (Amount-20,00,000, Tenor 20 yrs ) taken on 20 Oct 2015 for under construction property, which I want to convert into SBI Maxgain. Now my Branch Manager ( Home Loan ) from SBI is providing any details for the same.

    Please advice me

    1. Can I transfer my home loan to Maxgain home loan?

    2. If it is possible how can I transfer my home loan to MaxGain.

    3. What is the current day rule for conversion of normal home loan to Maxgain?

    Waiting for your reply.

    Thanks and Regards

    Rajesh A

  149. Hi Basavaraj,
    I am about to transfer my homeloan from HDFC to SBI max gain. balance loan 51lakhs.
    property value is around 1 cr. interest offered in sbi is 9.6%.
    SBI people told me that, above this value of 51 lakhs, i can avail more money thro something called “equity home” which is part of the sbi max gain loan itself. This is not a mortagage or a home alteration loan. if my propert value is 1 cr and my take home is high. Based on this eligibility, they can give 25 laks extra. This will be at the interest of 9.9. so I can take 25 laks and use it fot different other personal purposes. Can you please help me to clarify this?

  150. Hi,

    I m having a HL from SBI for Rs30L in Max gain feature.

    now im having a amount of 32L in that.

    what will happen now.

    Also, kindly suggest… prepaying is better option or keeping the amount in OD is better.

    1. SM-You have to inform bank about closure. Otherwise, your EMI will continue as usual up to loan period and same will be keep in available balance. Any type of loan is bad for one’s financial life. Hence, try to come out of loan and focus on your major financial goals to achieve them at the earliest.

  151. Hi,

    I have HDFC home loan and now after 1.5 years planning to move from hdfc to sbi maxgain due to its benefit.

    But before starting any procedure i have following queries, can you help to resolve it??

    1. Any limit for no. of repayment in whole tenure?

    2. Any charges for repayment and what would be the maximum and minimum limit for repayment?

    3. If I am putting some amount in my OD account then as per maxgain benefit I will have saving on interest. but I have seen in multiple forums that having balance in OD will neither decrease your emi amount nor decrease your tenure. so what is the gain here and where that benefited saving amount gone??

    4. If I am freezing my balance by transferring balance from SBI saving a/c [OD] to max gain home loan account, than will it reduce my emi amount or my home loan tenure?


    1. Nirav-1) In my view NO, but better to contact the bank for the confirmation.
      2) NO.
      3) Yes, it will not change the EMI or tenure. But in your EMI part, the interest payment towards the existing outstanding will be reduced. Such saved amount is your earning from the money you deposited in OD. This will be again available for your withdrawal at any point of time.
      4) NO.

  152. Dear sir
    I Have a maxgain account
    I Have doubt on calculation of available balance.
    From 31 Jul 2015 to 31 Aug 2015 the account statement is as ( interest 9.95%)
    31 July
    Drawing power=2915369
    Book Balance=-2893259
    Available balance=22110

    10 Aug 2015
    EMI =30658
    Drawing power=2915369
    Book Balance=-2862601
    Available balance=52768

    31 July
    Drawing power=2910824
    Book Balance=-2886867
    Available balance=23956

    In july my Available balance 22110 and after aug EMI paid Available balance= 22110+30658=52768 is shown
    On 31 July interest = 24266 but Available balance is deducted by 28812 and is the same case for next months also.
    My doubt is that how bank is calculating Available balance, In my case whether calculations are correct?
    As per me the available balance as on 31 July should be 52768-24266=28502.
    Please help me to clear my doubt.

      1. I think they deducted Interest (24226/-) and Principal amount (4585/-) from Available Balance. You can also observe that drawing power reduced by Principal amount (4585/-).

  153. Dear Sir,

    I have a normal SBI NRI home loan (Amount-2500000, Tenor 20 yrs ) from oct-2013, which I want to convert into maxgain.

    Please advice me

    1.Can I transfer my home loan to Maxgain home loan?

    2. If it is possible how can I transfer my home loan to MaxGain.

    3. Where I have to contact?

    4.What is the current day rule for conversion of normal home loan to Maxgain?

    Waiting for your reply.

    Thanks and Regards


  154. Hi,
    I have a question. I have fully transferred my balance and my book balance is 0.0.

    However, in 1 month, my available balance got reduced from 1,806,609.00 to 1,801,450.00.
    Shouldn’t it be constant as there is Interest being deducted?
    Does this mean, I can withdraw less amount every month?
    This way, after few years, my available balance would be 0 Rs.

    Status as of 1 Oct 2015
    Book Balance 0.00
    Available Balance 1,806,609.00
    Limit 1,806,609.00
    Uncleared balance 0.00
    Drawing Power 1,806,609.00
    Currency INR
    Lien Amount 0.00

    Status As of 1 Nov 2015
    Book Balance 0.00
    Available Balance 18,01,450.00
    Limit 18,01,450.00
    Uncleared balance 0.00
    Drawing Power 18,01,450.00
    Currency INR
    Lien Amount 0.00

  155. Hi Basu ,
    Thanks for enlightening us on Max Gain loan.
    Have a query.

    I have taken MaxGain from SBI – want to know if every thing in the loan is calculated as per process and please advise if some thing is going wrong, which needs correction .
    I have planned to pay Full EMI from the beginning .- loan taken for construction
    Currently they have disbursed only 9,57,628 out of the sanctioned amount 40,00,000.
    I have paid my first EMI on Oct 10th which is 35,000.

    This is the current split up .

    Book Balance = -9,29,535
    Available Balance = 30,70,465
    Limit =40,00,000
    Uncleared Balance=0.00
    Drawing power =40,00,000
    Lien Amount =0.00
    Currency =INR
    Interest Rate =9.40%

    Please advise ,
    with Regards ,

      1. Hi Basu,

        The doubt is bank did not disburse the full loan amount 40,00,000 .
        they disbursed partial amount as of now =9,57 ,628
        and i am currently paying EMI (35,000 -first EMI) for the complete loan amount 40,00,000 without even receiving the money, is it because i have opted to pay full EMI from the beginning ?.
        should i not be paying EMI for only the loan amount disbursed which is 9,57 ,628.
        my available balance is 30,70,465 . does it mean that i can withdraw this amount ?

  156. Hi,

    This is very informative & thanks for detailed explanation.

    I have these following doubts:
    1. I got around 2 lakhs recently and hence I transferred it to OD account. I wanted to keep it as surplus amount in OD account. But while transferring, I didnt pay attention to option selected and just selected “Payment toward loan repayment”. I am not wondering if the amount of 2 lakhs went to the principal amount itself. But here are the details from which you can tell me if it went as surplus amount(liquidifiable amount) or into principal amount.

    Book Balance -36,36,430.00
    Available Balance 2,08,690.00
    Limit 38,45,120.00
    Uncleared balance 0.00
    Drawing Power 38,45,120.00

    * Available balance shown above is 2 lakh plus. So can i be sure that the transferred 2 lakhs has gone into surplus amount only ?
    * 8,690 on top of 2 lakhs is interest earned because of surplus amount ? Because this 8,690 was shown even before i transferred 2 Lakhs to this account. So I am confused where this amount came from. Any idea ?
    * Drawing power is 38,45,120 implying I have only paid around 54,800 until now from principal loan amount of 39,00,000. Right ??
    * What exactly does my book balance say ??

    2. I got my flat registered bit early. That was in beginning of this october. Possession is promised to be in March 2016. But as i have got my flat registration done, can i be eligible for tax exemption for interest paid until March 2016 from April 2015 ?? Or i will be eligible only on physically occupying the apartment ??

    Thanks very much in advance. Awaiting reply from you.


    1. Vinay-In my view it is in available balance, but sadly in your case the property is not in your possession. Hence, you can’t withdraw this Rs.2 lakh until the property is in your possession. Property is not in your possession, so you can’t take benefit only based on registration.

      1. Are you sure about this Basavaraj ? Because, i just read in another blog where the person says we get OD account internet banking access rights & cheque book only once the property is registered. And we can withdraw the money online as you have access rights already. He says withdrawal facility is not based on possession and its based on registration.

        In my case, my property is registered but not yet available for possession. Also i have already got the access rights for transaction. I have not tested withdrawing though as i read there is some no. of withdrawal limits.

        The blog in which i read is:

        Please do confirm if you are completely sure about what you told above Basavaraj ?

        Thanks again,
        Vinay 🙂

        1. The netbacking you get before possession is only read-only access to see on-line statement. You can’t do any transaction. After getting possession and submitting occupation docs to bank, they will activate full access to net banking for funds transfer from MAXGain.

  157. Dear followers,

    Can any one please share the SBI maxgain OD account transaction activation form. I am out of India and SBI bank is not sharing form in email.They asked to visit branch. Can any one help me please.

    Please share in my email [email protected]

    1. no need to go to back for this purpose. If you login to netbanking of MAXgain account, you can directly request for full access from e-services section from the menu, and it gets activated with same day. I’ve done same for my MAXGain account and never went to branch for this.

  158. I have taken 2040000 max gain loan in Oct 2013 I want to reduce the total period from 15 years to 10 years. I cam repay extra amount nearly 6 to 7000 per month or can directly paid 60,000 per year which is beneficial for me please give suggestions

    1. Vaibhav-If your concern is to reduce the tenure and come out of loan early, then do it by intimating the bank. But don’t deposit the same in available balance. Because it will not reduce your tenure.

  159. Hi..can you advice how to deal with my situatiin. I have paid of home loan and no outstanding balance as of now.But my emi still getting deducted .im currently out of india and not able to contact the bank directly..No one answer the call in SBI to empty my bank account(frm which sbi withdraws for emi)so i dnt loose money.will this affect my cibil score? but please not my loan is completley pajd off.infact i hav positive balance since they are deducting emi even after loan is completed.Thank you in advance.

    1. Pava-Raise the issue immediately with bank either through call or email. If they not listen, then better to raise it at banking ombudsman. Skipping EMIs will have negative impact on your credit score.

  160. Hi,

    I have SBI Max gain loan with below details :

    Description: SBI HL MAXGAIN AUG12
    BOOK BALANCE: -1,61,444
    AVAILABLE BALANCE: 22,52,346
    LIMIT: 24,13,790
    DRAWING POWER: 24,13,790
    (% pa)
    LIEN AMOUNT 0.00

    Loan start date:- Sep’ 2013
    EMI 25000
    I have two simple questions:
    1) If my above statement is correct as per you ?
    2) What are the ways in which I can complete the loan payment by september 2016 ( with Normal EMI payment) to transfer home into my name.

    Thanks and regards,
    Pranjit Parasar

  161. Hi,
    I have taken SBI tax gain HL in last year. When i checked my online banking page, i could see the rate of interest in OD account details as 9.4% and in Loan account details as 10.3%. Could you please help me in understanding the difference between these two?

  162. Hello

    How do i transfer money from the SBI maxgain OD account to the savings account of SBI itself or any other bank


  163. Hi Basavaraj,
    Thanks for your detailed blog. You are truly doing a great service. Please find my SB Maxgain account balance details.
    Book Balance: -26,31,463
    Available Balance:1,51,517
    Uncleared balance:0
    Drawing power:27,82,980

    Please provide your thoughts for the following queries.
    1. As per your earlier reply for other queries, I assume my EMI repayment tenure will alone come down and not EMI value. So, If I continue to park money will my EMI amount will have more deductions towards the principle?
    2. Assuming, I make my available balance to 10,00,000 by this year end, Do you suggest me to approach bank to reduce this amount towards the principal repayment?
    3. My Bank staff are unable to link my SB with my OD account and they are unable to provide transaction rights. I have transaction rights for SB. But, not for OD. I am unable to move my funds from OD account? I would appreciate if you have any suggestion for this bottleneck.


    1. Suresh-1) By parking surplus, neither EMI nor tenure will come down. Also, principle part will remain same. But the interest part will be reduced and such balance amount will be re-deposited into available balance.
      2) It depends, if you no longer in need of this money then let it be towards principal.
      3) I am not aware of this, contact the bank officials ONLY.

        1. You can fill up internet banking form online and send it to SBI bank , then will enable your transaction right in day or 2.

        2. Hi sursh
          Have your problem of linking with maxgain and saving account solved

          I m also facing same problem from one week
          How could you solve it

  164. Hi Basavaraj,

    I am Aged 38 and have 2 FD’s & OD facility activated at (TD + 2 %) with OD upto 90% set
    21 L ( Mother Senior Citizen @8.93 Monthly Rs.15000/- )
    12 L ( Wife Normal @8.14 Monthly Rs. 8000/-)

    No O/S as of now on FD’s .

    I would like to Buy a Home worth 20- 25 L either via HOME LOAN – SBI Maxgain (Any other Bank who has the same Offset Home loan concept ) Or Over Draft but I am confused as I have the below scenario.

    FD Horizon is 5 years thereafter utilise these funds as Retirement Funds.

    Total Interest Income : 18000 being conservative as Interest Rates are reducing FD about to get renewed in 7 months.

    I am a co owner in both bank account and FD’s .

    Objective to create FD is to Buy a Home without putting myself in burden as I have the below situation.

    Home Budget : Not Exceeding 25 L.

    Job Continuity is the concern here.

    Home Loan cannot be taken by Both Mother & Daughter In Law as there is NO Other source of income other than Interest Income
    which is not considered by Banks as Income.

    For Home Loans I have to become co applicant & EMI’s would be deducted from my bank accounts tenure 20 years which I cannot reduce to 5 years looking
    at my Salary .

    Alternate which I was thinking is to use 80% of value from these FD (so Interest Recd V/s Interest Paid = 0 on monthly basis)

    I also want to close Outstanding within 60 months 5 years which is not possible.

    NET INCOME Rs.50000/- ( Limited so my Yearly Tax Saving Investments happen without any burden)
    Expenses Rs.30000/- ( Includes the Rent + family dependent 4+1 child , No Insurance)
    EMI Rs.20000/-
    Contingency Rs.100000/- Cash

    Please let me know if taking Home Loan would be feasible or OD.

    As I wnated to earn Interest income rather then putting the same funds in Home Loan of SBI – MaXgain OD account to reduce the Interest Outflow on EMI.

    Please suggest as I am confused and would like to create and Assest over and Asset.

    Thanks & Regards,

      1. Hi Basavaraj,

        Thanks for the reply, Looking at my age and goal Horizon Its a NEED.

        Currently I am living with my Parents in their own home + additionally I have rented the Flat which is next door @12000/- a monnth which I am paying and would planning to continue to pay rent for atleast 36 months more, by that time I Intend to create my Own Home along with the capital saved .



        1. Yusuf-If it is need also, I suggest you to lower the interest burden or EMI burden. Simple logic is, pay as much as possible from your own pocket (in your case FDs). Don’t let those FDs be there and raising the loan from such FDs or going for MaxGain is not best solution.

  165. Dear Basavaraj,

    What does it meant by Limit in this Maxgain terminology…. in my case i see its always remain equal to Drawing Power,,what is the difference please



  166. Hi Basavaraj,

    When we transfer money from other saving account to SBI Max gain OD account (Either toward park or prepay).

    I saw when we transfer, it will ask to “select purpose” in drop down box as following : –

    1. Payment toward loan repayment
    2. Deposit Investment
    3. Gift to relatives / Friends
    4. Donation
    5. Payment of education fee
    6. Other

    Which option to select for following –

    1. Park the money (which we can transfer back to other saving account is case of any need)
    2. Repayment (I think option 1) – Which we can just repay toward principal mean we can not withdraw for any need. It just reduce the Loan amount.


    1. Sourabh-I am not sure which option to use for this. But in my view for parking, you have to use 2nd option. However, I suggest you to check with bank before proceeding for fund transfer. I don’t have any loans. Hence, dumb on this 🙂

  167. Hi Basavaraj,

    Thanks for sharing these details.

    I have a SBI Max Gain Home Loan of 55L. I got disbursement in parts and now its fully disbursed.
    My loan details
    Book Balance : -40 L (Approx)
    Available Balance: 15 L
    Drawing Power: 55 L
    ROI: 9.6% (changed today)

    I have couple of questions and need your guidance on this.
    1. Should I prepay 10 L amount. Will this help in reducing the tenure of the loan?

    Can you please suggest me – should I repay 10 L or keep this in AB.

    Thanks a lot.

    1. Sandip-If you no longer in need of this Rs.10 lakh, then directly deposit towards principal and at end either EMI will be reduced or tenure. If you need this at any point of time, then park it in available balance.

  168. Hi Basavaraj,

    Thanks a lot for sharing these details.

    I have SBI MG loan. My loan details –
    Book Balance : -40L
    Available Balance: 15L
    Drawing power: 55L

    1. I can prepay 10L for sure and keep the remaining 5L for any emergency. Is this advisable to prepay the 10L?
    2. Also will this help in reducing the loan tenure?

    Thanks a lot,

  169. Hi

    I have SBI max gain account, took a loan of 45 Lakhs , 2 years back and the bank online statement shows below figures.

    The book balance as u mentioned is equal to Drawing Power – Available Balance, then why is there a discrepancy in the below figure of book balance

    Description SBI H L MAXGAIN AUG12
    Book Balance -43,22,601.00
    Available Balance 0.00
    Limit 42,78,932.00
    Uncleared balance 0.00
    Drawing Power 42,78,932.00
    Currency INR
    Rate of Interest (% p.a.) 9.7%
    Lien Amount 0.00

  170. Bhushan says

    October 5, 2015 at 11:34 AM

    Hey Basavaraj,
    I have SBI Max gain home loan.
    EMI started in the month of Feb 2015 that time interest rate was 10.15% for the tenure of 300 months.
    Now interest rate is reduced to 9.45%.
    How can I check reduced tenure in that case.

    Basavaraj TonagattiBasavaraj Tonagatti says

    October 5, 2015 at 12:57 PM

    Bhushan-Your EMI might reduced. Check with bank.

    Hello Basavaraj,
    Thank you for creating this helpful blog.

    Just want to add regarding the above Bhushan question:

    I checked with bank and found whenever EMI decreases tenure will decrease and not the EMI.

    1. Ashish-There are two options whenever there is a change in interest rate. First is they may change the EMI and second is tenure may change. If your EMI is constant then they may change the tenure. If tenure is fixed then EMI will be changed. Check with bank what will change in case of change in interest rate. Usual process is reduce in EMI to show the customers that they reduced the interest rate 🙂

      1. Hi,

        I have also similar query. Could you please advise on this…

        As per the interest rate calculated at the time of taking loan (July 2014), My EMI is 51040 which is getting deducted on 21st of every month.

        My question is, at month’s last day(30th/31st of every month) I am seeing 51040 is not getting deducted from my Max Gain account i.e. summation of principal and interest component is not equal to 51040.

        As per my understanding, the EMI should be same irrespective of the Rate of Interest. If we have surplus amount in Max Gain account, the principal should be more and interest should be less but the amount should be 51040. For my case, the sum of principal amount and interest amount is not equal to 51040 at the end of the month.


        1. Ashish-When you deposit amount in available balance, then your principal of EMI will be constant. But the interest part will get reduced and re-deposited to available balance. How can both interest and principal be equal?

          1. Thank you Basavaraj. But its a long time since I have this account but I have never seen this much discrepancy in the total principal and interest component at the end of the month.

            Let me put in this way –

            Case (1)

            From beginning of the month, lets say I kept 0(Zero) balance in my OD account. 51040 credited to my OD account on 21st(EMI Date) and till month end it is same(51040).

            So, as the EMI is 51040 then lets say interest is 43040 then as per my understanding the principal should be 8000 for this month?? That is summation of principal and interest component should be 51040?

            Case (2)

            From beginning of the month. Lets say I kept some money(1 lakh) in my OD account and 51040 is credited to OD account on 21st(EMI date) and 51040d is kept till the end of the month that is 1,51,040.

            So, as the EMI is 51040 and as a benefit of Maxgain the new interest component for this month lets say is 41040 then the principal deducted how much the interest will be? Is it 10,000(51,040-41040)?

            Now the question is, If I check my account details, I can see that interest deducted is 41,303. As per case 2, I have kept total 51040 in my OD account but at last I can see that the total interest deducted is 41303 and principal for this month is 5837 and I can see the balance in the OD account on 1st Oct was Rs 3,900.

            statement on 1st Oct:-

            30-Sep-2015 (30-Sep-2015) DEBIT INTEREST 41,303.00

            Also, additional information the actual loan amount was 52,35,000 with ROI as 10.25 but currently the Drawing power is 51,44,909.00 and the rate of interest is 9.45 from Oct 5.

            Could you please help me to understand this. Thank you!

            Thanks for your time!!


            1. Ashish-Case 1-Why they deposit your EMI to available balance? They directly adjust towards the outstanding principal and interest of that month.
              Case 2-Break up will be like this. From your EMI, the principal part is adjusted towards the outstanding principal. No difference in that. But in interest part, they adjust based on the balance in book balance. This automatically reduces your interest part. Such saved interest part will be deposited into available balance.

              Compare the cases with your amortization table provided bank (where they show each month’s principal and interest break up).

              1. Thank you so much for your reply. I went to the back and asked for the Amortization schedule. Here it is as follows…

                As per Sept 2015 below are the principal and interest component..

                Loan Amount ?5,235,000.00
                Interest Rate 10.15
                Loan Tenure (months) 240
                EMI ?51,040.24
                Final Disbursement Date Jul-2014

                Principal Interest “Drawing Power”(end of the Month)
                Sept ?7,543.21 ?43,497.04 ?51,34,963.70

                but as per statement from SBI and as you have mentioned the interest is reduced.

                30-Sep-2015 (30-Sep-2015) DEBIT INTEREST 41,303.00

                Now the question is on principal,
                I kept 51040 in my account but I saw Rs 3900 left in my OD account account that means the total principal is Rs 5837(51040-41303-3900) rather Rs 7543 which you mentioned should be fixed.

                Now the limit is shown as – 51,44,909.00

                Could you please help me on that. Thank you for your help in advance!

                  1. Thank you Basavaraj. I will take a close look on the principal and interest component for this month to make sure it is as expected. The fact which I came to know is – the EMI amount will be deducted on 19th of each month for me has interest and principal component. On month’s last day – the Interest and principal will be deducted from OD account where the Principal remains constant but the Interest may vary depending upon the surplus amount kept in OD account.


  171. Hey Basavaraj,
    I have SBI Max gain home loan.
    EMI started in the month of Feb 2015 that time interest rate was 10.15% for the tenure of 300 months.
    Now interest rate is reduced to 9.45%.
    How can I check reduced tenure in that case.

  172. Due to lower interest rate I want to transfer my existing home loan from IDBI. I want to know about any difference in interest rate in Max gain and SBI normal home loan.

  173. Hi Sir,

    I need your suggestion on Insurance policies against House loan.
    I am planning take home loan from SBI, but the agent is saying that insurance policy is mandatory for house loan and he also said it mandate from RBI. Please let me know which policies I have to opt for House loan, presently I have term insurance of 20 lakhs .


    1. Rajesh-It may or may not mandatory. Banks usually insist to cover their RISk. At the same time, it is good for you too. Hence, I suggest to go and buy (but it is not mandatory that you must buy the product which banks advice you).

  174. Hi,

    Is there any way, if we can deposit (Park the money / Prepay) against SBI max gain Home loan OD account and ask SBI to reduce the EMI.


      1. Thank you Basavaraj.

        Just want to confirm whether SBI give option to reduce the EMI or not. Now as per my understanding, If I prepay the amount, so after that I can ask SBI to reduce my EMI. But as I am prepaying, I will not be able to withdraw that amount from SBI ( As per SBI Max gain policy for that amount only, rest will be fine for withdraw).

        Please confirm if my understanding is correct ?


          1. That means SBI max gain give option to prepay against principal and reduce the EMI.


              1. Regarding loan repayment, I heard that you can repay it only once i.e. lets say if I have taken a max gain home loan for 20 years then within this 20 years i can repay the loan amount only once which is not the case for other home loan products where you can pay as many times as you can..Could you please confirm.

              2. No. I;ve SBI MAX gain account in PUNE. The branch informed me that i can not adjust any amount towards principal amount, the amount must be minimum 20% of total loan amount and can be paid only twice in a lifespan of home loan, this is cheating from SBI and they never tell this info when taking loan.

  175. Hi,

    I have a Maxgain Loan account in SBI and I have deposited excess fund in OD account. My property is under construction.

    Now I want the bank to refund me the OD amount i.e. issue me a cheque book as I need the funds for other purpose.
    However as per bank withdrawal can be done from OD only after possession or full dispersal, also as per them final dispersal is on registry only so essentially till the get possession I can’t get my money out.

    Please help me understand if there is any such term by SBI under given scheme and also what problem will bank have in giving back my amount to me and take their valid EMIs.

  176. Hi Basavaraj,

    First of all thanks for helping us.

    My doubt is about ROI i.e. 10.1 % for my case. I took max gain plan 2 years back and last year I got possession.

    My concern is now SBI is offering 9.75 % ROI to new customers only. I felt SBI will treat its old and new customers equally.

    Can we do anything in this case?

    Best regards,

      1. Thanks for instant help.

        I found that they are charging of .56 % to convert it to lower rate. Below is the link.

        So if I have remaining 30 Lakh rs principal, than should I go for it or not.

        My current interest is 10.1
        New interest will be 9.75

        May be it lower down more after today’s RBI announcement of .50 basis cut off. Shall I wait for more time than?

        Best regards,

  177. Sir, I have taken SBI Maxgain housing loan acccount. I have read all your information regarding this loan. Thanks.

    Please clarify how can I claim deduction of principal amount and interest paid in my income tax return, in the case of parking surplus funds in the account and withdraw the same, on several occasions in a year.

    1. Hanumantha-There is no special process to apply for tax benefit if you are the customer of this home loan. However, read my whole post. You will get an idea of taxation on surplus you deposit.

  178. Hi

    I got SBI Max Gain loan for KHB Site two years Bank , In My OD account available balance is around Rs 1.00,000 . Can I use it for may persanal use ?

  179. Hi Sir,

    Thanks for sharing this valuable information.

    I have one concern and i need your suggestion .

    I have taken home loan from SBI ( MAx gain) but i have not opted for fix EMI .

    I am transfaring the amount to the SBI according to my convince (my EMI is 35K but i transfer 35k+ some time and some time 35K-)

    My current loan status is ,

    Book Balance -29,18,477.74
    Available Balance 4,50,445.26
    Limit 33,68,923.00
    Uncleared balance 0.00
    Drawing Power 33,68,923.00

    I need your suggestion ,

    Shall i go ahead and opt for Fixed EMI option or Shall i continue in same way ?

    Thanks in advance .

      1. Thanks sir for your suggestion and i will defiantly follow it . but i just want to know , is there any disadvantage in my existing process ?

        1. Sumeet-Why to complicate life? Let us simplify with fixed EMI and if possible at higher EMI to come out of any loan. Whatever surplus you have that you can keep in available balance and use it at ease.

  180. I took a SBI max gain home loan for Rs 27 lakhs on August 2009.
    Bank released the amount in two installments.

    As of now my Book balance is Rs -19,92,338.97
    and limit and drawing power is = Rs.19,70,930.
    Available balance is zero..
    My EMI is getting deduceted periodically.
    if i park extra money it is getting reduced from the book balance and not getting refelected in Available balance.
    Why this scenario is happening ? could you please explain

  181. Hi Basavaraj,

    Consider the loan details as below.

    Book Balance: 1,00,000
    Available Balance : 23,50,000
    Limit : 22,50,000
    My EMI is 25K per month
    I took the loan in 2010.

    In the above case i have a surplus amount of 1 lakh.

    1) As of now do i need to pay towards interest to loan amount.
    2) Each EMI as of now is adding to Book Balance so can i withdraw the surplus amount and keep the Book Balance Zero.
    3)Once the book balance reaches Zero how exactly the EMI calculated toward the loan repayment.
    4) Do i need to keep surplus amount or keep the Book balance as zero. Which one is good.

    1. Mani-1) NO. 2) YES. 3) It is again added to available balance the same reflect in book balance like exactly the present status. 4) If your surplus is more than the outstanding loan then why to keep the loan and pay the EMI? Just inform the bank and close the account.

  182. Dear All,

    I have following questions about SBI max gain home loan account, can someone help me on this : –

    1. Can I request for a check book for SBI OD account ?
    2. Can I request for ATM card for SBI OD account?

  183. Hello Sir,
    I need your opinion on my case,
    1) I took home loan from the SBI under maxgain.Laon Amount is 45lakhs.

    2) my EMI is Rs. 44582/month.I am also paying my EMI from the very next month of loan disbursement.

    3) But i have availed Rs. 3640358 only and got the possession of my flat now.

    What would be the best option to save interest here.
    Should i keep the same EMI(Rs. 44582)?
    Should the SBI reduce my loan amount(Principle) considering the additional interest I would have paid?
    What is DP?
    I know i have asked so many questions but would appreciate any help on this.
    I requested bank for some suggestion but i get no response from them.
    Please advise.
    Thanks in advance.

    1. Jai-If you have surplus then you can park in Available Balance and reduce your interest outgo. At the same time, you can pay the principal dues and also reduce your interest outgo (EMI will be constant but the saved interest will be adjusted towards the outstanding principal). This saved additional interest may be kept in available balance or adjusted towards principal based on your intimation to bank. I already explained about DP.

  184. “Prepayment saves more than parking money on the account”
    How correct is the above statement?

    Please throw light on this.

  185. Hello Sir,

    I do not want to “park” money on the SBI maxgain account because I do not want liquidity of that amount. I just want to bring down the loan principal forever by doing prepayment. This is because parking money will just save some interest for me but prepayment will bring down the principal and will be more beneficial eventually. I hope I am right.

    I gave the cheque worth Rs 2 lacs to the bank for prepayment purpose. But when I checked the account, that amount was seen in the “Available Balance”. This means that my loan principal is not reduced forever; the money is just parked there.

    The officials in the SBI are now saying that I cannot do prepayment unless I am going to pay more than 20% of the principal amount. And they are saying that prepayment can be done only twice in the entire tenure. Is it correct or SBI is misguiding me?

    If this is the case, how come Max Gain is beneficial for those who can prepay the loan once in a year or so? When i transferred my loan from HDFC to SBI, I was told that prepayment is allowed.

    1. Amey-Their two conditions are totally new to me. Whether the same is explained to you during the start of product? According to THIS, SBI not mentioned any such conditions of 20% principal payment clause or number of restriction on such repayment. They are completely misguiding you.

      1. Thanks for your prompt reply.
        I took loan in March 2014 when they said it’s allowed. Now one year down the line, officials in RACPC office in Pune, Maharashtra said that it’s not allowed since last two years ! If prepayment is not allowed, Max Gain product becomes hopeless because prepayment saves more than parking money on the account. Can you confirm from your contacts that such a restriction is not there? If you do that, I will raise a complaint to their head office.

          1. I am also holding the account in the same branch, and this week i tried to prepay some of my principle and i got the same reply.

            Officer said that you can not prepay your loan until your principle is reduces by 20%. That means if i want to prepay then i will have to pay minimum 20% of my home loan.

  186. Dear sir

    My tds deducted in 194j Rs:13500 (advisor work)
    So how to get refund.
    I m not salary employed.
    How to fill return itt4
    Please help me.

  187. Hi Basavraj,

    Is it true that in case of Home loan taken for under construction property, if the builder doesn’t complete the house within three years then one can claim tax exemption on the interest paid ?



    1. CK-As per my knowledge, there is no such facility. You will start to get the benefit only when you are in possession of property. Because it may be delay due to whatever reason, that period of starting construction to possession of property is considered as under construction period only.

  188. Hi Basavraj,

    Generic question : Some builder offer pre-emi scheme ( not sure if its called ADF or what ) in this scheme builder will pay the pre-emi for 18 months or till possession till apt is under construction now in this scenario if customer lets the builder pay the pre-emi till 18 months and then say he repays the loan amount to bank then in a way he used the loan with no interest at all isn’t it ?

    Example : Say a customer has 10 lacs but he places them in FD or any investment, takes loan of 10 lacs as a loan in a pre-emi scheme where builder pays the pre-emi for 18 mths or till possession . Customer enjoys the no pre-emi till the apt under construction builder enjoys the loan at lesser interest, bank anyways gets the customer. Now after 18 months customer pays back the loan w/o any penalty charges and closes the loan . earns the interest on his 10L and appreciation in the property . IS there any catch here ?



  189. Hi Basvaraj,

    I have taken Home loan for under construction Apartment , as per the information by the builders the aptnt was suppose to be ready by 1 year. Based on this I put a lumpsum amount for 1 year as pre-emi starting 1st March 2013.
    and subsequent payment 12X loan period taken as EMI in the ECS form.
    I have been paying this payment ( pre-emi+emi) since 2.5 years.
    1st year FY 2013-2014 — Pre-emi
    2nd year FY 20142015 — EMI
    Plus 6mths of this current FY 2015-2016 –Emi

    1) I was under impression that FULL emi starts only after we take possesion and registration done is it true ?

    2) I received the provisional interest certificate from SBI only for 2nd year which was FY 2014-2015
    does that mean my Full EMI started since FY 2014-2015 ?
    3) if not what factors decide the switch from Pre-EMI to EMI making them to send interest certificate only for full emi period.

    4) Is it true that one cannot claim tax exemption on interest that was paid in the pre-emi phase the 1st year in my case FY 2013-2014.

    5) During my pre-emi phase and also in EMI phase I was paying an fixed amount which was always extra then the actual interest which bank shows as DEBIT interest, question does this extra amount paid earns the interest ?

    6) I am into third year of pre-emi/emi payment and I haven’t taken the full sanctioned loan yet suppose I don’t want to take any disbursement from bank. will they be re-calculating the emi on my written intimation ?

    7) I am into third year of pre-emi/emi payment and I haven’t taken the full sanctioned loan yet suppose I want to close the loan how much re-payment I have to make is it loan disbursement taken minus ( excess payment that I had made to bank on the pre-emi and emi + Principal component as per their provisional certificate ) ?

    8) Is there any penalty if one exits in pre-emi phase ?



    1. CK-1) No, you can start full EMI even during under construction period also. This relieves your loan liability.
      2) Check with your payment during 2013-14 and to 2014-15. If the EMI started from 2014-15 then it will be higher amount than what you paid during 2013-14. You can get interest payout details of 2013-14 also.
      3) They will not switch, but you have eligibility to switch to full EMI to lower your burden.
      4) Yes. But at later stage, once you are in possession of property then such total under construction interest part can be claimed for tax benefit in 5 equal installments for 5 FY years.
      5) I don’t think Pre-EMI and EMI will be same. Check the same with Bank. I doubt that they might have started the full fledge EMI from start of first disbursement of loan itself.
      6) Yes, they have to. You have to inform them that you will not touch the pending un-disbursed amount.
      7) It is will be current principal outstanding disbursed amount (They will not consider any un-disbursed amount).
      8) No.

  190. Hi Basavraj,

    I really really appreciate your blogs they are very informative whether it be regarding complex SBI max gain or it regarding EPF and EPS.

    I am really thankful your efforts in making complex things simpler.



  191. Hai

    I need your Advice. I am in 20% IT Bracket and I am retiring Next year and I get Pension. I am planning to Buy Apartment in Bangalore .

    Shall I Invest my terminal benefit or go for SBI Maxi Gain home loan. which is more benificial.

    Pl Give your Advice.

    Thanking U with Regards
    S R N Murthy

    1. Murthy-Any loan is BAD. Try to relieve as much as possible from home loan, especially never buy a home in the thinking that you SAVE TAX. For saving Rs.20, you are spending Rs.80 as an interest on home loan. Think twice and decide.

  192. Hi,
    Basic question – While trying to park money in OD , it gives drop down options – Loan Repay, Deposit, Other.. etc …. not sure which one should i select to park money in OD account.

    Can you please help?

    Thank you.

  193. Hi Basavaraj

    My loan with SBI is sanctioned for 35 lac for 7 years. I have 10 lac which I can pay and reduce the loan amount to 25 lac or
    keep the money in OD account. My EMI will start from next month so I have 10 lac in my OD account right from start of tenor.
    Please advice which is the best option:

    1. Keeping 10 lac account in OD
    2. or reduce the loan amount to 25 lac from 35 lac?
    3. Third option is to take loan only for 25 lac, keep 10 lac in FD for one year and pay builder the last instalment which will come after 1 year. This way I can earn interest
    for 1 year from 10 lac FD.
    4. Please let me know if he interest in OD account is taxable?


  194. Hi Basavaraj,

    Great information. Thanks for sharing.
    I just have one question:
    How can I figure out how much interest and principal deducted every month/breakup of paid EMIs.
    Currently, I can’t find this info in netbanking/statement online.
    Any idea how to get this? Basically I need to figure out how much I am saving by going with maxgain parking my liquid funds 🙂

    1. Amit-Ask your bank, they provide such break up yearly once (for tax purpose) or you can ask in advance too. Yes, during under construction period, you can’t transfer money back from OD to savings account.

  195. Hi Basavaraj,

    Very good and informative blog for new comers like me, on home loans!!

    I have an SBI EASY HSG LN MAXGAIN loan. The current available balance is shown as Rs 15,26,996 and I have not deposited any additional amount into this account. The drawing power is Rs 19,90,623 and the book balance is Rs -4,63,627. Current rate of interest is 11.45%

    I have purchased an under-construction flat in Bangalore and the final demand note is yet to be raised by the builder. Would like to know if SBI will allow me to use this loan amount for paying stamp duty and registration along with the final demand note amount.

    I have taken a 30L loan in the year 2011 for a tenure of 10 years. Monthly EMI is Rs 38,283

  196. Hi Basavaraj

    I have taken a Maxgain a/c with SBI on CLP stage and their calculation makes no sense at all to me!! Very basic question – you mentioned “EMI and tenure of the loan will never change during the course of a loan tenure.”

    If that’s the case, what puporse does it serve? I may as well take a normal home loan if my EMI or tenure doesn’t change whatever I do.


  197. Hi,

    As I planned to buy a resale Flat, after read your post, I wish to apply for SBI MAX GAIN Home loan,

    Please clarify me what are all the benefits I can get for my case (just example)

    Loan Amount: 250000
    Rate of interest: 10%
    Loan Tenure: 12 Yrs
    EMI : 30000

    Now, consider I have taken all 25 Lakhs on the day one. Regardless of deposits any surplus money, I have to pay the EMI 30 thousand every month for 12 yrs.(like a normal home loan)

    What could be the benefit if I deposit the surplus money 25000 for every month?
    I remember there is no change in EMI or Tenure just because of deposit surplus money.

  198. Hi Basavaraj,

    I took an underconstruction property (which is almost 90% construction over). And I took SBI Max Gain Home loan and bank disbursed 90% of the loan amount. I started paying Full EMI from this month. As builder confirms that registration & possession will happen within January 2016.
    In that case, Will I be able to avail tax benefit(under Sec. 80C and Sec. 24B) with the EMIs paid from Aug 2015 till March 2016 (both ) for the FY 2015-16?


    1. Kasi-You will not get any tax benefit under Sec.24B or Sec.80C. Once you take the possession of the property, then only you can claim this. However, the paid interest during the under construction period can be claimed in 5 equal installments under Sec.24 only after the possession of house.

  199. Hi Basavaraj,

    Please clear my doubt on OD facility on SBI SURAKSHIT HL MAXGN AUG 12.

    I applied for loan during 2013 and bank sanctioned 30L in Apri 2013 and I started the construction around same time.
    I had few personal issues in between an the construction got delayed. Now, its in the final stage. I got 27L still now at different levels of construction. As per bank, the remaining amount of 3L will be disbursed only after completion.

    I had opted for a 6 month moratorium and after which I stared paying the EMI which is 31K.
    And, I haven’t deposited anything other than the EMI on to that account.

    The bank details as on today shows
    Book Balance: -21,94,436.00
    Available Balance: 8,05,564.00
    Limit: 30,00,000.00
    Uncleared balance: 0.00
    Drawing Power: 30,00,000.00

    my questions are
    1. Is there any deadline to avail the loan.. like it should be disbursed in 3 years?
    2. With reference to the above statement, I am eligible for OD, at least after availing the loan in full?
    3. Of the 8+ L shown as Available Balance (8,05,564.00 to be exact), I know 3L is the final disbursement pending. How will the bank treat the remaining amount on AB?

    1. Sreeraj-1) I am unable to find any such RBI ruling. Let bank come up with any such notification or RBI ruling with you.
      2) Yes, you are eligible since the first loan amount disbursed.
      3) Yes, and the interest you earned on that.

      1. Thank you for the speedy reply.

        That means, I can take back that 5+ L amount after the final disbursement, right?
        You also mentioned about interest accrued, which I believe is for the parked amount. At what percentage the interest is calculated?

        Can you please explain, why the loan details page shows only “DEBIT INTEREST” and not the Principal amount?

        31-Jul-2015 (31-Jul-2015) DEBIT INTEREST Debit: 18,724.00
        10-Aug-2015 (10-Aug-2015) DEPOSIT TRANSFER TRANSFER FROM xxxx Mr. SREERAJ S Credit: 31,000.00


        1. Sreeraj-Yes, you can take back. The interest accrued in your case is not about any parked amount but due to the undisbursed amount. It si the way how they show the statement. For further clarification, you can check with bank officials.

  200. hi Basavaraj Tonagatti,,
    I want to know how to activate the Online banking in Mt MAX GAIN OD Account… I have contacted my branch nut no one has enough information regarding this….I can avail the benefit of max gain only if my account is activated with online banking..

      1. hi
        i already contacted the main branch itself, but they dont have the information regarding this

        1. If I am not wrong, my experience is that once the property is registered and handovered the original documents to RACPC they will provide acknowledgment of receipt and letter to home loan branch to activate the MAX GAIN a/c. Once the letter given to the manager of our home loan branch it takes one day to activate the MAX GAIN a/c.

          1. Additionally, for transnational rights, you have to application in writing at home loan branch.
            Also, note that you cannot transfer money from maxgain account back to savings account if property is under construction.

  201. Hi Basavaraj,

    Very much appreciate for the details you have provided in this blog. 🙂 its really helpful.Thanks

    I have Max gain loan from SBI (30 L ). My property is underconstruction and 2 slabs around 10 L disbursed by SBI.
    I want to whether I can get Top up to reduce margin %. Recently my salary structure is changed and I can submit the new salary slips…so want to know is there any way to get TOP UP of 5 laks more.


  202. Dear Mr. Basavaraj,

    your posts are very insightful and they help a non-experienced guy like me to large extent. My query is about Pre payment. My loan of 35 Lacs has been sanctioned @ 10% for tenure of 20 years by SBI. The Project is under-construction and the first payment: 10 % contribution by me and 30 % contribution by Bank (both contribution in total will be around 17 Lacs) will be made in next month i.e. Sep 2015. In present I am having saving of 10 lacs with me. So I would like to know :

    Can I transfer the sum of 10 Lacs to Overdraft (OD) account just before or after the first deduction from bank loan? As it will decrease the interest charged on the amount deducted from bank loan account.

    or please suggest as per your opinion what should I do (like other investment in property or Gold) with 10 Lacs?


      1. thanks for the prompt reply. One more thing in either of normal SBI loan or SBI Maxgain loan, can I ask the Bank to start the full EMI from day 1st of partial disbursal ? or the full EMI can be made only after complete disbursal?

          1. thanks and in construction period instead of parking 10 Lacs account into OD , Can I transfer 10 Lacs (will be termed as Extra EMI or loan repayment) in one go into loan account? or Is there any limit on Extra EMI payment in construction period?

            1. Manav-If you no longer in need of Rs.10 lakh then you can pay your outstanding principal (Specifically instruct your bank about this. Otherwise they may keep it in OD Available Balance). Otherwise keep that into OD.

  203. Hi Basavaraj, I must say quite interactive blog..WOW
    Actually I want to know as Interest rates keep changing and SBI Maax gain calculates interest on daily basis(Daily Reduction). So by any chance can you please help me with any excel sheet calculator which can show me daily balance with variable interest rate and also if i pay any surplus amount. It would be a great help.
    Actually I tried to find the sheet on google but everywhere its on monthly basis or interest can not be changed. Looking for your help.

  204. Hi Sir,

    I applied for Max gain home loan, but SBI processed normal home loan. In my application status it says Scheme – HL for Individuals. I want to know if it is easy to transfer from this scheme to Max gain. If so, what is the process?

    Thanks and Regards,

  205. Hi Basavaraj,

    Need your suggestion.

    I took SBI MAX Gain home loan of amount 25Lakh. Till I got possession only 24Lakh is offered and there is still 1 Lakh available in my Loan Amount. Can I transfer this amount to MAX Gain Account? If so what will be procedure?


  206. Hi Basavraj,

    i have SBI maxgain Account loan & my loan amount is 12000,& the EMI for the same is 12583 Pm.
    the initaila interest rate was 10.50, then its down to 10.20%.
    last month i request to bank for new interest i:e 9.75 for the same i have paid 6565 rs. Now my rate of interset is 9.75
    suddenly My EMi down from 12583 to 11888.
    now i requested to bank to increase my EMI from 12583 to 14000Pm.

    Now my 1 st concern is
    1) will my tenure will go down??
    2) Additional 2500 Rs will go to OD account Or its directly go to principle??

    request to guide on this


    1. Sachin-1) If you requested for raise in EMI then definitely tenure will go down. Check the same with Bank for how many years it came down.
      2) It will go to principal amount.

    2. Sachin,

      Any reason SBI has charged ~6K Rs for reducing the interest while other banks are doing by their own? I have the same problem and bank is asking me to pay 13K..


      is this because it is maxgain account and if so why is that?

  207. (1) We can use OD account as salary account? Dump salary and increase the available balance(AB).
    (2) We can also pay EMI from AB? This will reduce the AB.
    (3) Now interest saved due to parking fund in AB will also report to our AB.

      1. Dear BT,
        Thanks for your reply!
        Now I have applied for SBI MaxGain balance transfer from IDBI.
        (1) Regarding my EMI
        Every single penny I have. I will try to keep in AB. I will give standing instruction to my bank to transfer fund equal to my EMI from my AB to attached saving account. (approx 2-3 days prior to EMI due date). Is this technically possible?
        (2) How we will get account statements? separate for AB & DL? How about tax purpose?
        (3) What all documents I need to submit to old bank after getting cheque from SBI? Signed foreclosure form plus SBI cheque will suffice?

  208. do we actually need to deposite any amount as EMI in maxgain or it is just debited to the maxgain for example i take a loan of 2500000 and EMI is 25000/- per month,i did not deposited any thing -withdraw 100000/- in a year,-EMI debited each month 12 x 25000=300000 thus available amount( after 1 yr) is 2500000-300000-100000=1200000. please explain is this right?

        1. Harsh-When you say EMI, it constitutes two parts. One part goes towards your outstanding principal and second part towards interest. Hence, you can’t plainly direct all your EMI towards principal.

  209. Hi Basavaraj,
    I have one small doubt in SBI Maxgain account. I have taken 35 Lakhs home loan. In online i can see my SBI maxgain account. Now i plan to repay 5 lakhs as re-payment. Can you please tell me how should i do that?
    2. If i plan to repay from my PF account, the PF amount will be created to SBI maxganin account? How the bank will consider the PF amount as Re-payment amount?


    1. Ramesh-1) Whether this repayment is temporary or permanent (I mean you need this cash after some time)? 2) I am unable to understand your logic of transferring from PPF (If I am not wrong) to SBI MaxGain. Please elaborate more.

  210. I have taken SBI Maxgain Homeloan. But finally I have taken disbursement of little lesser amount than the initial loan amount sanctioned. Now, after taking possession of my apartment when I asked SBI branch for transaction rights, they are saying I need to get the limit reduced to actual disbursed amount and only after that they will provide the transaction rights. I wrote an email to SBI RACPC but no response. I am out of town now, hence please suggest what I can do to get the transaction rights.

      1. That is what i am wondering. Branch is asking limit to be reduced to provide transaction rights. On the other side RACPC is asking to submit “ORIGINAL” Possession Letter to submit to them for Limit reduction. I didn’t understand anything here.
        Also, my second query do we need to submit ORGINAL possession letter to RACPC? or only a copy of the letter?

  211. Can i keep depositing and make by Book Balance from negative to Zero. After this, can i still deposit. What happens in such a scenario?


    1. Kurup-You can’t deposit into book balance. But you can deposit in an available balance. Once the outstanding balance i.e drawing power and available balance are same then the value in Book Balance shows zero. Your EMI still continue and the principal part get adjusted to regular outstanding drawing power and the interest part will be ZERo, which is credited back to available balance.

      1. Thanks Basavraj – So if i make my Book Balance Zero, practically can i say that i have paid all the money required to be re-paid to bank.? (Though i understand that the EMI by ECS shall continue till the tenure completion).

        So assuming my EMI is getting deducted from my ICICI Bank savings account, say on the 10th of every month. Once my SBI HL – Book Balance becomes ZERO, can’t i give an instruction to SBI to transfer the money back to ICICI on 11th OR 12th of every month and keep doing this till the Loan tenure ends?…Hope this makes sense. If you find a issue in this, do let me know.

  212. HI,

    I have taken 15L loan from SBI in MAx Gain Account. I have started to pay EMI from Last yest September 2015. Now after end of financial year I recevied interest certificate for account as below :

    Repayment towards Principal Rs. : 30816.00
    Repayment towards Interest Rs. : 82005.00
    Repayment towards Charges Rs. : 0.00
    Total Repayment Rs. : 112821.00

    But if we count from September to April I have Paid (16300 x 8 month) = Rs. 1,30,400.00
    So there is gap of Rs.17579
    Can you explain me what is this?
    Or is Bank has make mistake

  213. Hi,

    I am using this MAX GAIN account since November, i need clarity one thing, like if i had parked some surplus amount because of this i am saving interest part (lets say originally i have to pay 10 k Interest now i have to pay only 5k) , so in this case can i take tax benefit of all original 10k or only 5K.


  214. Hi Basavaraj,

    I have SBI Max gain home loan of 30 lakhs for 30 years, my EMI is 28k now i want reduce my loan tenure i have 5 lakhs which is not required in future, but bank manager said EMI will not revise nor tenure.

    Now i have query as follows
    1. Will interest calculate on 25 lakhs?
    2. And what will be my tenure if I pay 5 lakhs to reduce my principle?
    3. Is there any further option to reduce tenure?


    1. Poonam-1) Yes, you are correct. 2) That calculation must be available with bank. Hence, go and discuss the same. 3) You can say them that you are ready to pay higher EMI, which automatically reduces the tenure.

  215. Hi Basavraj,

    I have taken loan of 46L on 13-Jun-2013. Also deposited some amount (total 4.3L) ideally all that amount and interest should reflect in Available balance. But in my case available balance(4 L) is less than the total amount which I have deposited. Rather it is showing some amount 30K deducted from drawing power. My account is SBI H L MAXGAIN AUG12. Is there any setting by which I can stop deducting my available balance and also interest should be added in available balance ?

    1. Dear basavraj,
      This is very common problem.
      I my case on 20/September /15 my AB reduced by 25000 and DP was adjusted. BB remain unchanged.
      no entry in the online statement.
      Please reply this point.


  216. Hi Basavaraj,

    We have taken home loan of 20lak tenure 20years.( IT is MAxgain account)
    Currently am paying EMI+extra10000 amount every month.
    Which is more benefit for me among below two options
    1.EMI+extra10000 amount every month where extra amount will go in Maxgain account
    ( If i will not require this extra money deposited per month)
    2.change the tenure(reduce from 20year)

    1. Sharada-If you feel the additional Rs.10,000 is additional amount which you get in future continuously, then instead of keeping it in OD, better to request for a tenure change. Pay more EMI and come out of loan. However, if you feel this cash is only for few month, then better to keep it in OD.

  217. Hi Basavaraj,

    Can you please tell me in case of maxgain loan, where can i check reduction in my principal amount , after payment of each EMI.

    Thanks in advance

  218. Hi Bsavaraj Ji,

    I have done a balance transfer from DHFL to SBI.
    I have take disbursement of Rs 20 Lac of SBI Max gain Home Loan on 6th Jul 2015 and my EMI will start from 15th Aug 2015.

    My Queries are as mentioned below :

    1) In my OD a/c on 31 July there is a entry of Debit Interest. How to Make a payment of that Interest to SBI ? Because if i will transfer amount to OD a/c it will still reflect as a Available balance and it will not be consider as a payment of Interest ?
    2) When i am logging in to the net banking i can see only Saving Account & OD account so is there something which called as a loan account ? and i have not got the access of it ?

    Pls help …i am in so much of tense. SBI is not co operating to help me to understand these things.

    Nilkanth M Sonar

    1. Nilkanth-1) I think it is some adjustment of less than a month interest due on your loan disbursement. Check the same with bank officials.
      2) I am not right person to ask this. Instead, suggest to contact Bank. If officials not co-operating them call the customer care.

  219. Hello Basavaraj,

    I have got a SBI Home Loan for 40 lacs sanctioned and my Pre EMI has already started. However, when I check the home loan account statement, I see entries for “DEBIT INTEREST”. I do not understand what is this amount ?

    My Pre EMI started from July 2015.

  220. Hi Basavaraj,

    Many thanks for ur useful post…
    I have taken loan from SBI max gain of 25L for 20 yrs, I have parked 10 L in my OD a/c, My query is:
    1. if its is better idea/ advantage to repay that 10 L towards my principal or keep it parked in my OD account?
    2 What is the advantage of repaying loan vis a vis parking in OD a/c?

    Pls. note these are surplus fund and will not require in near future

    Many thanks


    1. Priya-1) If you feel that Rs.10 Lakh not at all required then you can divert it towards principal. However, if need that case any point of time then better to keep it in OD. Hence, it is you, who can judge this perfectly.
      2) Both are different. In repaying early, you come out of debt early. However, in parking in OD, your EMI goes on up to the term of loan.

      1. Hi Basavaraj,

        First of all would like to thank you for such an informative post. I had a few basic queries and would like to seek your valuable suggestion:

        I have taken a loan of 30L from SBI max gain for 15 yrs, I have parked 10 L in my OD a/c, My query is:
        1. Is it advantageous to repay the 10 L towards the principal or keep it parked in my OD account?
        2 What is the advantage of repaying loan vis a vis parking in OD a/c?
        3. Will the interest charged by the bank over the entire tenure of the loan in both the situations be the same?

        Pls. note these are surplus fund and will not require in near future


        1. Anand-1) If you don’t need this cash back then I strongly suggest you to repay towards principal.
          2) Repaying loan is best as you will come out of it early. However, parking is advantage when you have huge cash for few days, months or years, which you want to it back at any point of time.
          3) Yes.

  221. Hi Basvaraj,

    – So if I understand correctly, the surplus interest part goes in the Available balance. If we are NOT doing any pre-payment, this available balance is nothing but our savings (as we saved the interest outgo). And we can use the amount from “Available Balance” for our routing bank transactions like utility bill payments etc. Correct?

    – You mentioned EMI amount and the loan tenure will not change (unless I think we instruct the bank on this), right?

    – If I want to make a pre-payment (for which I have to instruct the bank) that will from the “Available Balance” which has surplus funds deposited + accrued interest (my savings 🙂 as mentioned above)

    Please correct me if I’m wrong.

  222. I am planning to take a loan of 38L for 20 years from SBI. What is a better option , regular home loan or Maxgain? My motive is to finish the loan as soon as possible.

    On what conditions should I make this decision?


      1. Hi Basavaraj,

        Thanks for replying. Further I wanted to know is there any harm in taking a max gain even if surplus amount is not deposited? Is getting max gain loan more difficult than regular loan or does it reduces loan eligibility?

        1. Eshan-There is no harm (even if you not depositing your surplus). If you not deposit surplus then it acts like normal home loan. There is no such different criteria to sanction this home loan. Procedure is same.

  223. Hi Basavaraj,

    I am an NRI & have taken a loan of Rs 40lac under SBI MAX Gain policy for under construction flat for which I will get possession by Sept 2016. I have asked for a one year monotorium period in which I have to pay only interest part @ 9.7 % & afterwards my EMI will start.I have to pay builder as per schedule:

    1.August 2015 : Rs 2424380/-
    2.October 2015: Rs484876 /-
    3.December 2015: 484876/-
    4.January 2016 : Rs 387900/-
    5.August : Rs 96972/-

    I plan to pay amounts from sr. no. 2-5 by myself to the builder which I already have in my bank account.Moreover I would be having Rs 6lac additional amount by the end of August 2016.
    Pl advice me whether I should keep this Rs 1454624/- from now onwards in my Max gain account or shall wait till August 2016 to have 6 lac additional amount deposited in my loan account & reduce the EMI.
    Pl advice as my main concern is to finish the loan as soon as possible.


    1. Manish-How about an idea of depositing Rs.14,54,624 now and later Rs.6,00,000 in OD Account of SBI MaxGain and starting EMI from now itself? It drastically reduce your outgo and principal repayment.

      1. Yes I can start my EMI now . Do I need to do this as prepayment or shall I deposit this amount in OD account.

  224. Hi,

    I have switched my home loan of 10.5 Lacs from Indiabulls to SBI in the month of March-2015.
    I had applied for Max Gain Home Loan in the application.
    Now when I checked for transaction rights on internet banking, I did not see the option for transfer from Home Loan account to Savings account.
    I checked this with Branch and they realised that RACPC processed my application as “term loan”
    I am aware of all the benefits of Max Gain Overdraft account and that’s the only reason for switching from Indiabulls to SBI.
    I am disappointed knowing that its opened as term Loan account despite informing them to open it as Max Gain in the beginning many times.
    Please suggest me the options for switching it to Max Gain account now.

  225. I am planning to take loan from SBI for Underconstruction property. Can you please suggest regarding below
    1) Yuva Home Loan
    2) SBI Maxgain

    1) Can i get loan combination of SBI Maxgain+Yuva home loan?
    2) Do i need to pay EMI or Interest on disbursed amount only? Or EMI on saction amount i need to pay?
    3) If my sanction amount is less than what required, can i do parallel payment? Or i need to pay difference amount first and then only SBI will disburse loan amount?


    1. PC-First understand your requirement. Instead of me, it you who have to decide about loan products. You have both option either to pay the interest only on disbursed amount or start your EMI. I am unable to understand your 3rd question.

      1. I have purchase under construction house and it will take for builder to complete it in 5 year

        I am planning for Yuva home loan (3 year moratorium) because it gives me higher eligibility with combination with Max gain.

        But as per SBI loan officer, I need to pay Interest on Sanction Amount (Not disbursed amount).

        Could you please help me with below
        1) Do i need to pay interest on Sanction Amount?
        2) Can i combine Maxgain+Yuva home loan?
        3) Which product will be best suit for underconstruction period 5 year?

  226. Thanks for this information. I have one query. I have availed SBI Maxgain loan. Recently, I have parked surplus amount of INR 1,00,000 in my SBI Maxgain OD account. After doing this, I am seeing that bank as put INR 500 as Lien amount. I want to know what is this Lien amount and why bank has charged me this?

    Below information might be useful to you.
    – Approved loan value: INR 3388000
    – ROI 10.1%
    – Property is ready for possession and I have availed around 29 lac(without parking surplus in OD) and I do not need to avail any further. So I parked surplus amount of 1 lac.

    What is Lien amount and why it is charged? I am planning to park more amount in the OD account. Will it impact me adversely?

    1. Abhiram-I am not sure why the Lien Amount showing in statement. You can ask the same with Bank Officials. Parking more money in OD is beneficial but do remember that you may loose tax benefits of housing loan (Already explained above).

      1. I have purchase under construction house and it will take for builder to complete it in 5 year

        I am planning for Yuva home loan (3 year moratorium) because it gives me higher eligibility with combination with Max gain.

        But as per SBI loan officer, I need to pay Interest on Sanction Amount (Not disbursed amount).

        Could you please help me with below
        1) Do i need to pay interest on Sanction Amount?
        2) Can i combine Maxgain+Yuva home loan?
        3) Which product will be best suit for underconstruction period 5 year?

  227. Hi Basavraj,

    I have a recently taken Maxgain home loan account – The amount was disbursed on 22 June 2015. The loan sanctioned is for 35.08 Lacs @ 9.75% for 20 years. On 30th June ~8000 was deducted from my OD account and the book balance, limit, DP became 35.16

    In between I deposited 20000 in my OD account which was visible as Available balance.
    As per my standing instructions, My monthly EMI on 10th July of 38000 moved to the OF account and was again being shown as available balance. so the total available balance became 58000.

    To date it is still the same and no principal amount has been deducted from it. My DP=Limit is still 35.16L and book balance is 34.58L (DP-Available balance)

    I am not sure where the principal deduction can be seen in these transaction. Is my account behaving as it should, or it is behaving as if I am paying pre–EMI, which I have not opted for. Appreciate your help


      1. Thanks Basavraj for the reply. So if EMI id correctly placed it will result in reduction in my Drawing Power/Limit, this reduction will be equal to principal component of EMI. and the interest part will remain in my available balance and will be deducted on last day of the month. please let me know if my understanding is correct.

        1. Ankit-Interest part will be calculated based on book balance. Any such difference between the interest part of EMI and the actual interest on book balance will be kept in available balance.

  228. Hi ,
    I have SBI max gain amount. I moved to US last year. I want to convert that to NRE account, I have some questions below.
    1. If I convert the current max gain account to NRE account, does the new account has the same features as old account. Is this change possible?
    2. What documentation is needed, any power of attorney etc etc?
    3. Please guide any extra information will be helpful .


    1. Shashank-1) I think NRE home loan is different than the this product. Hence, rules and features changes and also I feel this account not available for NRIs. Because they specifically offer home loan for NRIs.

  229. Hi Basavraj,

    I have a maxgain home loan account – The loan was sanctioned in March 2015. The loan sanctioned is for 80 Lacs @ 10.15% for 15 years. My monthly EMI on 10th of every month is 86,705.

    In May 2015, I made a deposit on 12 Lacs in my OD account. My current balance in OD is as per below.

    Description SBI H L MAXGAIN OD (AUG14)
    Book Balance -71,91,860.00
    Available Balance 7,06,086.00
    Limit 78,97,946.00
    Uncleared balance 0.00
    Drawing Power 78,97,946.00
    Currency INR
    Rate of Interest (% p.a.) 9.85%
    Lien Amount 0.00

    I also made some withdrawals from this surplus in the month of May and June – Details below.

    Date (Value Date) Ref. No. Debit Credit
    13-Jul-2015 (13-Jul-2015) TRANSFER FROM Savings Bank A/C 1,10,000.00
    10-Jul-2015 (10-Jul-2015) TRANSFER FROM Savings Bank A/C 86,705.00
    10-Jul-2015 (10-Jul-2015) TRANSFER TO Savings Bank A/C 50,000.00
    07-Jul-2015 (07-Jul-2015) TRANSFER TO Savings Bank A/C 1,00,000.00
    30-Jun-2015 (30-Jun-2015) 56,553.00
    23-Jun-2015 (23-Jun-2015) TRANSFER TO Savings Bank A/C 25,000.00
    19-Jun-2015 (19-Jun-2015) TRANSFER TO Savings Bank A/C 2,70,000.00
    15-Jun-2015 (15-Jun-2015) TRANSFER TO Savings Bank A/C 86,705.00
    31-May-2015 (31-May-2015) 61,068.00
    12-May-2015 (12-May-2015) TRANSFER FROM Savings Bank A/C 12,00,000.00

    I am bit worried on how my interest is calculated as i am seeing that on 30th june and 31st May there has been 2 debit transfer of 56553 and 61068. What are these and how are these calculated? I am wondering if keeping a surplus in OD is beneficial at all? Is so – could you help explain?


    1. Also, am not sure if my EMI has been transferred on a monthly basis. For eg: June 2015, I dont see any EMI going from my Savings bank a/c to OD account. For July, I see under OD account transactions something that says Deposit transfer of 86705 – Is this the EMI paid for the month of July?

    2. Santosh-Interest is calculated based on the outstanding of that month. If anything you saved from that interest due to your additional deposit, then the same will be transferred to available balance as a benefit of your deposited amount. If you still have confusion on this, then you can contact bank officials. If EMI is not regular, then an issue which you have to check with bank.

  230. Hi Basavaraj,

    Have few queries on maxgain, please reply –

    1) What is more beneficial keeping the surplus amount in OD account every month or doing the repayment of loan after every few months ?
    2) If I don’t withdraw my surplus amount till end of the loan, it will be huge amount , can I withdraw that amount after loan closure ?
    3) What is top-up loan ? How the interest rate and tenure is decided for this loan ?

  231. Section 24B – Less interest savings in tax deduction will be applicable for normal loan account incase we do prepayment. So how its a disadvantage for maxgain?

  232. Hi Basavaraj,

    Can you please elaborate more on this “Lesser Tax Benefit-Let us say you planned to save more by claiming interest payment under Sec.24 B of IT Act. But due to depositing excess cash into this amount, the interest on this excess amount will not be part of deduction for Sec.24 B. Hence, you may end up in less tax benefit.”

    How we end up in less tax benefit in section 24B (Interest payments). I am clear that surplus amount deposited to this account will not be eligible for 80C (Principal Payment) as that amount we can withdraw anytime. But how it affects 24B when we do surplus payments? If you can explain with scenario it will be very helpful.

    Also is it possible to convert the Max gain Home Loan account into normal loan account? Does SBI charges anything for this conversion?

    1. Also does SBI Max gain gives interest on surplus amount deposited (Available Balance)? Say i deposit 100000 in available balance so will SBI gives any FD/SB interest on this amount?

    2. Bharat-Monthly interest will be calculated on Book Balance. Hence, whenever you park excess amount then the interest part will be lesser than a typical EMI. Therefore, this may end up in lesser interest exemption under SEc.24B. You can convert SBI MaxGain to normal. Regarding charges, contact bank officials. SBI will not give interest. However, they take lesser interest as the interest is calculated on Book Balance. This saved interest part will be kept in available balance for your withdrawal. This is the earning of what you get.

      1. I checked with SBI – They said MaxGain to Normal cannot be converted. One more thing – When the “Drawing Power” amount gets reduced? Is it monthly As today I deposited 50K in the account but my Drawing power and limit are the same.

        1. Also the same 24B thing will be applicable in normal loan account incase we do pre payment. So how this is a disadvantage in case of maxgain?

      2. Section 24B – Less interest savings in tax deduction will be applicable for normal loan account incase we do prepayment. So how its a disadvantage for maxgain?

  233. Dear Sir,

    Very useful information.

    I have SBI maxgain a/c and lone for 20 years tenure. I wanted to reduce the tenure and dnt want to keep surplus amount in account.

    Can I do that ? If bank did the same how will I come to know my tenure is reduced and by how many years/months?

    Where can we see the balance tenure in SBI maxgain?

  234. Hi Basavaraj

    Hats off to your good work

    Here is my query

    I am in merchant navy and i come under NRI, am i eligible to take SBI max gain. I have my NRI account with SBI for last 10 years+

    Kindly advice , no banker is sure.


  235. Hi Basvaraj: I am applying for a home loan for 38L but i do have surplus funds of 38L. I want these funds to be available for a rainy day. My plan is to apply for SBI Max Gain home loan and park these funds in the OD account and also request for higher principal deduction.
    Is my planning flawed? I just want the funds to be available. what is the benefit of taking loan for a lesser amount if I am not paying interest as the surplus amount is anyways parked in the OD account.

    Please advise.

  236. Hi , very informative ,,,,
    I have a Q…….. I am NRI , I have 50 lakh cash in hand ,
    my home construction need 50 lakh…
    so can I take SBI Max Gain .Loan of 50 lakh or should i utilize my liquid cash .
    thank you
    awaiting your reply

    1. Dr.Basu-I don’t know why you accumulated Rs.50 lakh and what are your financial obligations. Hence, It is entirely your call. But ideally it is better to stay away from any type of loans.

      1. Hi , Thanks for your swift reply with advise ,

        I was thinking … i will be having liquid cash in hand in FD ( NRE Tax free) and i can manage EMI with Interest from FD , I am planing come back in 2019 to India , that time i may save with income tax also …
        I may be wrong with this explanation ………
        so kindly suggest me what to do

  237. Hi Basavaraj,

    This is a superb article & thread. Based on above discussion, i wanted to understand below:-

    The extra amount/surplus which I transfer to Maxgain goes towards OD but how do i make sure it goes towards the principal of the loan amount, so that my loan tenure decreases?
    Do i need to inform bank to make that happen?

    Thnx In Adv

  238. Sir
    I have taken home loan 10 lakh from Sbi in 2011, now my current balance is approx 9 lakh pl reply me following questions.
    1. can i convert the regular loan to maxgain loan account?
    2. how much max balance kept in maxgain account?
    3. can i kept any amount ( balance)?
    4. can i withdraw amount through ATM, CHEQUE,ONLINE , ETC?
    5. any change in home loan interest and EMI
    6. tell me if any suggestion .

    1. Bailpattar-Yes, you can convert to SBI MaxGain. You can keep the maximum of equal to your outstanding loan balance. Yes, they provide ATM and Cheque to withdraw the parked surplus cash. Change in home loan interest is something, which you have to discuss with Bank.

  239. Sir,

    My home loan EMI is deducted on 4th of every month but drawing power does not decrease on the same date.

    Is there any reason of it?


      1. Sir,

        I have checked on 5th and 6th as well. Still my drawing power is the same.


          1. Hi Basavaraj,

            My EMI was Rs.16415 till April 2015. I requested to the SBI to increase my EMI Rs. 26000 from May 2015. The bank did the same as per my request but the excess amount ( 2600 -16415= 9585) was just credited to my available balance. The principal amount which deducted from Drawing Power is just Rs.4151. I was in the impression that this excess mount would also get deducted from DP.

            What is the procedure to make it happen ?

            1. Balwant-Whether you saw any transaction which reflect that Rs.9,585 was actually showing in Available Balance? In my view for that particular month in that additional Rs.9,585 the principal part was Rs.4,151 which they deducted from DP.

              1. Hi Basavaraj,

                My earlier EMI was Rs.16415 consisting of Principal and Interest Part. The principal part is used to reduce the DP. I wanted to pay more toward the principal part so I approached the bank and they suggested the you increase the EMI. I increased the EMI amount from Rs.16415 to Rs.26000. Now the excess amount (26000-16415=9585) is not going toward to reduce the DP. This excess amount is just added to my available balance. So my aim of bring down DP faster has not been achieved.

                I am not able to understand what is the way to pay more so that DP get reduced by the same.


                1. Balwant-But the advantage here is, once your interest outgo for this EMI is zero then you can opt for closure of loan. Interest part will be zero when the Book Balance is zero (Difference between DP-Available Balance). So if available balance is increasing then it is reducing your interest burden.

  240. Hi Basavaraj,

    You have mentioned that Your EMI and tenure of the loan will never change during the course of a loan tenure.

    If I opt for SBI Max Gain of amount Rs.55 Lacs for 15 years & i want to pre close it before 10 years then it is possible.


  241. Hi Basavaraj,
    First of all many thanks for your detailed explanation. I must admit, I also feel the terms a little complicated sometimes. I will need your help to understand a bit more about my SBI maxgain Home Loan Account.

    Below are my details:

    I was sanctioned a total loan of Rs 28,57000 (280000 SBI Maxgain home loan + 57000 for SBI Maxgain Suraksha Insurance) for 20 years tenure.
    I have opted for full EMI from day 1 for my underconstruction property.
    I have been paying Rs 28046 on monthly basis from August 2012 till date. This amounts to 33 months which equals Rs (33*28046) = Rs 925518.
    I had paid service tax contribution to the builder from my own pocket. Initially I planned it as a part of my total sanctioned loan.
    My final disbursement is now completed.

    The following is showing in my portal now:

    Account Details
    Account Number 000000325083*****
    Description SBI H L MAXGAIN AUG12
    Book Balance -22,22,432.00
    Available Balance 4,58,423.00
    Limit 26,80,855.00
    Uncleared balance 0.00
    Drawing Power 26,80,855.00
    Currency INR
    Rate of Interest (% p.a.) 10.1%
    Lien Amount 0.00

    I have the following questions:
    I want to understand why available balance is less. It should be EMI paid till date plus surplus amount right?
    I want to understand why drawing power is 2680855 and not 2857000 (my total sanctioned home loan amount)?
    Do I need to inform explicitly to the bank that my full disbursement is completed? I have already signed an additional form during the last disbursement request letter.
    As I have paid extra amount from my pocket and don’t need the full amount of Rs 2857000 to be disbursed, will that get adjusted automatically after the final disbursement or I need to inform the bank?
    What are the post formalities after final disbursement? Do I need to handover the flat possession letter to the bank?

    Many thanks in advance.

    Subhrajyoti Pal
    [email protected]

    1. Subhrajyoti-Available balance will not include your total EMI paid. Drawing power is not the total sanctioned loan, but the outstanding principal balance. No need to inform them about full disbursement. Becuase they will not disburse you more than the sanctioned amount 🙂 If you don’t want the amount be fully disbursed then in that case you have to inform the bank about stop disbursing it. Regarding formalities of post disbursement, the bank officials will inform you.

      1. Thanks.

        Flat Agreement Value = Rs 3384900
        Initial Agreement Amount for Down Payment by Self = Rs (20 % of 3384900) = Rs 676980
        Remaining Amount for Loan (Around 80 %) = Rs (3384900 – 676980) = Rs 2707920.
        My initial plan of including service tax in loan amount. So applied loan amount of Rs (2707920 + 104593) = Rs 2812513
        Actual Home Loan approved = Rs 2857000 (Rs 28 Lac for Home Loan + Rs 57000 for SBI Maxgain Suraksha Insurance)
        Actual Bank Disbursements = Rs (338490 + 507735 + 507735 + 507735 + 338490 + 169245 + 169245 + 169245) = Rs 2707920
        Service Tax Amount (My Own Contribution) = Rs (3.09 % * 3384900) = Rs 104593
        Undisbursed amount with Bank = Rs (2857000 – 2707920) = Rs 149080
        Final Disbursement Date – April 2015

        So, As I Understand –

        Available Balance = Any surplus amount parked in this account + accrued interest savings + un disbursed amount (in case of Construction Linked Payment).

        Drawing Power = Outstanding principal loan amount.

        Can you please explain me the breakup of how Available balance & Drawing power is derived for my case on the basis of above details?

        Do I need to visit the branch for receiving a detailed break up of the Amortization calculation?

        1. Subrajyoti-In your case the Available Balance will be the un disbursed loan amount of Rs.1,49,080-Rs.57,000 (SBI Maxgain Suraksha Insurance). However, the drawing power will change monthly based on your EMI payment (which constitutes some % of principal repayment). To clear this ambiguity, better you ask the break up with your bank.

  242. Hi Basavaraj,

    I have a MaxGain Home loan which is completely disbursed last month, and I got transaction rights too for the same. But my available balance is showing as zero (0.0) always, even if I transfer any amount to the OD account. My EMI for the month is already deducted. Any idea why its so ?

    Thank you,

      1. Interestingly, when I logged in to the mobile version of online SBI(, there was an uncleared amount of -12600 shown. But the desktop version was showing this as zero. Then I transferred 15000 to OD account after which uncleared balance became 0.0 and available balance became 2400. And now I was able to trandfer upto 2400 from OD account. But not sure what that uncleared balance was 🙁

  243. Dear Sir,

    Please provide me your expert comment.
    In March-2015 , SBI disbursed amount of 40,00,000/- for 10% for 30 years. Now interest rate change of @9.85% . Please provide for calculation of change of tenure.Also the i am depositing Rs.2000/- per month. Please provide me the calculation for interest saving.


      1. Dear Sir,

        Thanks for your reply.

        1) I want tenure calculation after changes of interest rate from 10% to 9.85% . How can i calulate the tenure.

        2) My loan is 42,39,000 recd in 30th march-2015.
        Intrest debited Rs.2323/- for March.
        My EMI is Rs.37201/-
        In month of April i paid Rs.2500/- extra

        3) Due to extra payment , is there any changes in the saving of interest.
        then Interest debited is Rs.34377/- ( How Rs.34377/ calulated by Bank ). Please guide.

        1. Sandesh-Definitely, if you deposit any surplus in available balance account then you save the interest part of your EMI in the same proportion. Because interest will be calculated on outstanding Book Balance. Such saved interest is deposited in an available balance. For detailed explanation of calculation, you contact the branch. I hope they guide you.

          1. Dear Sir,

            Thanks for reply.Please explain what is th Book Balance, Available balance, Limit and Drawing power. What is the principal outstanding which we have to pay.

  244. Sir,

    I have taken SBI maxi gain loan of amount 18 lakhs for twenty years. I wish to finish this loan in 12 years. I have paked some surplus amount in my OD account. I have already spoken to the SBI official about paying more towards principal.
    They are suggesting to increase the EMI.

    But according to you EMI does not change and tenure as well.

    What shall I do?

      1. Sir,

        At present My EMI for the said loan is 16415. I have given instruction to increase this EMI to 26415.
        I have a doubt here whether

        this extra (261415 – 16415) amount of Rs.10,000 will go towards my principal repayment.

        this extra amount of Rs.10,000 will be added to my available balance.


  245. Thanks for detailed info Basavaraj .

    Earlier i was assuming that by parking surplus funds regularly in the SBI max gain , will automatically enable closing the loan earlier (than the initial fixed time ). Since we will be paying fixed EMI but since interest is calculated on only on Prinicipal + surplus, I thought additional interest we pay goes towards principal repayment.It seems it keeps added to my available amount.

    i have taken around 32 L loan for 15 years. i have a goal of clearing this in 8-10 years. can you tell how i can enable SBI MAXGAIN enable to reach the goal.

    If we want to prepay some amount (partial not full closure) in max gain (not parking funds) Can we do that ?

      1. Sure . Will do that . Can you please suggest how do we make sure we use maxgain to our advantage.

        In a case for loan for 30 L for 15 years, How i can plan so that i can close in around 8-10 years

          1. Dear Basavraj,
            Thanks for above information.
            How we can reduce number of year in SBI max gain home loan?
            Thanks and regard

  246. Hi Basavaraj,

    Very nice article.
    I have a small question.

    Lets say I buy an apartment costing Rs. 50 lakhs.
    Now to get into agreement with the builder, I need to pay up 20% upfront (=Rs. 10 lakhs).

    I have two options:-
    1) Take loan of Rs. 40 lakhs with SBI Max Gain and deposit Rs. 10 lakhs in Max Gain account
    2) Pay another 10 lakhs to builder and take loan of Rs. 30 lakhs only.

    Please tell me which option is better assuming that I can afford paying the EMI of Rs. 40 lakhs loan.

    Thank you in advance!

    1. Rajdeep-In your assumption, how much will be loan sanctioned? Why you want to deposit Rs.10 lakh to this account and why another Rs.10 lakh to builder? Unable to understand your logic. Can you elaborate more?

  247. Thanks for writing these articles which has helped me more in investment planning. 🙂

    I now have a question regarding SBI Max gain home loan. I have taken a joint loan of 42 lakhs from SBI for an under construction project. They have disbursed 27 lakhs now and remaining shall be disbursed in 3 stages.Now my question is if at all I dont take all of 42 lakhs and just ask them to release 33 lakhs as I can manage another 9 lakhs from my PF etc, will I be able to change my EMI as the loan amount taken by me will be only 33 lakhs. I have opted to pay full EMI thinking that I ll be able to pay more portion of principal initially for the few months till I cancel the remaining 9 lakhs and then I can change the EMI.
    Please guide me so I can plan in properly as my finances are a but tight right now as I m staying in a rented place.

      1. Thank you Basavaraj for replying. Also can you guide me if paying full EMI is a better option or only the interest part ? I ll get possession of flat next year i.e. March 2016 and my loan starts this month. Can you tell me what is better and how ?

  248. Hello Basavaraj

    I have a normal SBI loan which I want to convert into maxgain. I am told that since my loan sanction amount was more than 1cr, I will be charged .25% premium on normal interest rate. Is it right. Will the % differ if loan amount was less than or equal to 1 cr.


  249. Hi basu nice information. Now I am availing my home loan from SBH. Can I transfer this to SBI Max Gain home loan for which any hidden or extra charges applicable? Pl will u guide me for this. Thank u.

  250. Hi,
    very useful information, I am having the same loan but understood nitigrities very well now


  251. Sir,
    I want to confirm if my understanding is right or not for the below point.

    “Your EMI and tenure of the loan will never change during the course of a loan tenure”

    So for example lets say my loan outstanding principal is 1000 rs. I deposited 600 rs into the account. The EMI will be constant but the interest will be calculated only on the 400( remaining balance) and then the difference of the interest portion of the EMI and interest on 400rs will be deposited as additional money into the loan account.

    I hope I am clear with the doubt 🙂

  252. I have invested in ICICI India Recovery Fund series 2. Is it good to invest in closed-ended scheme. Shall I continue these type of investment in future. Please share your thoughts.

    1. Manimekalai-You are asking me when you already on boat 🙂 Let me know why you invested? Close-Ended Funds are meant for good commission to advisers. So I am not fond of close ended funds.

      1. I don’t have any knowledge on this. Just I got mail in my mail box, which induced me to invest. Also I have invested in ICICI India Recovery Fund series 2 Direct Dividened payout. Is Direct fund also pay fee to the advisers. Who is the adviser here? Sorry for my ignorance.

        1. Manimekalai-Acting without planning is worst. This applies to investment too. Strange to see that you invested blindly but concentrating on less than 1% expenses of advisery fee. First try to understand what wrong you did by investing in this fund.

  253. Sir
    My name is Somashekhar from Karnataka aged 32 years . I am presently investing Rs 10000/- each month in the following funds of sip of Rs 1000/- each with a goal for future needs planning for next 8-10 years. So kindly review my portfolio and give your valuable suggestions if any please.
    Axis LT Equity Fund(G)
    Franklin India Prima Fund(G)
    HDFC Balanced Fund(G)
    HDFC Mid-Cap Opportunities Fund(G)
    ICICI Pru Balanced Fund-Reg(G)
    ICICI Pru Focused BlueChip Eq Fund-(G)
    ICICI Pru Tax Plan-Reg(G)
    Mirae Asset India Opportunities Fund-(G)
    Tata Balanced Fund(G)
    UTI Equity Fund(G)
    UTI Opportunities Fund(G)

  254. Hi Basavaraj,

    Nice Info. Just wanted to know, interest rates will it remain varying in case of floating int rate or such a kind of loans are treated separately? Will such additional consideration from bank have any hidden cost involved?


      1. Hi Basavaraj

        I took SBI tax gain HL in 2011 of Rs 15 L, I got dibursement of Rs. 14.25 L till possession offer. bank didn’t give me 0.75 L for registry and informed it will be given after registry, in Jun’15 , registry of flat done and i made request for disbursement of Rs.0.75 L , now bank is telling my drawing power has been reduced and only 0.4 L can be given, i could not understand how my drawing power has reduced.
        My EMI of Rs. 15344 is running from last 30 Months. Pl help to make me understand.

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