Difference between SBI MaxGain and Regular Home Loans

In my last post, I wrote about the SBI Max Gain Home Loan scheme features, benefit, advantages and disadvantages in detail. In this post, I try to focus on the differences between an SBI MaxGain Home Loan and Regular Home Loans.

Before proceeding further, I summarized the earlier post into a video. Please have a relook into this video for better understanding of this product.

Below I tried to explain the difference between SBI Max Gain Home Loan and Regular Housing Loans.

SBI MaxGain_mini

You notice that, the calculation of interest that makes this product different from others. You earn interest additionally on what you park as your surplus cash. However, a principal part remains same as per schedule and will be adjusted to Book Balance, which in return reduces your Drawing Power. 

Tenure of the loan and EMI schedule remains same in both the cases. However, the method of interest applicability varies. 

When it comes to liquidity and usage of the home loan account as an SBI Account, then definitely SBI Max Gain has an edge over regular home loan products. When it comes to taxation, the surplus you deposited into this account and interest earned on this surplus will not be part of any tax saving. 

Definitely a good product if you are expecting some surplus cash at the regular time. You can benefit from depositing to this account and can withdraw at any point of time. 

Hope the above video and the table gives you clarity about this product. 

140 Responses

  1. Hi Mr Basavaraj ,

    I am salaried employee. I am going for 95 Lac loan . Option HDFC regular loan – 8.4 & Bank of Baroda Advantage ( OD) home loan – 8.9.
    Apart from EMI and other charges , i can save 70 k per month as a surplus money .
    It is benefit to go with regular loan in 8.4 % or BOB advantage (OD) with 8.9% ?

    Best Regards,

    1. Dear Rajnish,
      If you need a liquidity with whatever you are additionally parking, then better to use OD account. Otherwise, a normal account is fine.

  2. Hi – i am planning to take 1.3cr under construction housing loan current home loan is 7.1%.with today’s RBI rate increase, this will become 7.5%. Max gain is 40bps higher. I can have 1.5L addition free cash on the top of emi of 1.2L. Does it make sense for paying higher for maxgain. I can withdraw later for house interiors.

    1. Dear Rajan,
      MaxGain is useful only if you are expecting some additional cash during the loan tenure. Otherwise, using a simple home loan is far better.

  3. I have 60 L cash in FDs, I would need this 2 years later when i go abroad. If i take a maxi gain home loan of 60 L for purchasing home now and park this 60 L which i have in FDs into this OD account and withdraw the 60L after 2 years will my emi for the first 2 years be zero?

    Also is pre closure of maxigain loan allowed?

    1. Dear Sourav,
      As I mentioned above, EMI will continue as usual (even though you parked the whole loan amount). However, whatever the interest part of EMI is again redirected to available balance (which is kind of earning for your from Rs.60 lakhs parking). Yes, pre-closure of MaxGain is possible.

  4. Hi Basu,
    Thank you for guiding all needy people.
    I have SBI maxgain home loan (22 lakh) since 2012 ,I have kept 20 lakh in it, so there will be interest on 2 lakhs only. I am now planning to go for new home loan, so few questions –
    1. Will it be wise to close 1st Home loan?
    2. As new house will be under construction for next 2 years, will it be good to close 1st loan after possession of 2nd one. As I would be able to claim tax benefit under section 24B for 1st home till that date?
    3. Which home loan will be better Maxgain or Flexi one?
    Thank you in advance.

    1. Dear Gaurav,
      1) It is hard for me to suggest anything BLINDLY without knowing your full details of financial life.
      2) Do you think there is actually a tax benefit if you own a property on loan? Think logically. You are under the loss.
      3) Maxgain is better if you are in expectation of cash flow during the tenure of the loan. Otherwise, a normal home loan is fine.

  5. Dear Basu, Thank you so much helping people with comments. I am failing to realise the fundamental benefit of this max gain after paying for 3 years in a row.. here is my doubt.

    I took a loan for 50L , 20 years., EMI of 50K approx.

    I managed to park close to 15 lakhs surplus in these 3 years.

    Now my interest component kept on decreasing significantly .For example inn my last EMI only 25,000 is taken as interest debit during end of the month.

    Question :

    1. Since my EMI does not change , what happens to the remaining 25,000. Will that be towards the principal ?.

    2. So the more I park , less the interest for that month and remaining will go towards the principal ?

    3. If so then my outstanding will reduce sooner than planned and I will have an option to close it earlier right ?

    Just making sure if my understanding is correct. Thanks in advance..

    1. Dear Sree,
      1) The interest part of the outstanding balance is considered as loan interest and the rest part of the interest is credited back to your available balance.
      2) Yes.
      3) Yes.

  6. Hello Sir,

    I have a SBI max gain Home Loan Account. With respect to the prepayment, the bank officials told that the prepayment cannot be made for an outstanding loan amount of 10 lakh. Also, the bank denied converting the Max Gain Account to a normal Term Loan account. Please advice if this is the case/Constraint with SBI Max Gain Home Loan Account.

  7. I have taken sbi maxgain loan in Oct.2013. On 30th May 2021 available balance is504000 and limit is 1480000,but when I checked it on 31st may available balance is492000.when ask to bank officer, they told that your limit is decreased.how can bank debit the amount without information to customer. What is process to get the original available balance return as on 3oth may.kindly help

  8. Hi – I have SBI Maxgain home loan account. Even after 7 years of regular repayment of EMI which includes both towards principal and interest. I observed principal amount is not getting reduced correctly? While I understand monthly interest will vary based on amount parked / withdrawn from OD account, principal is not getting reduced?

    When I verified principal amount deducted as per Interest Certificates issued by bank every year the outstanding principal amount is not matching. I spoke to Branch manager but he is not able to answer why there is difference. Please can you guide.

  9. Dear basu,
    I have the following question.
    1. Supose i have a maxgain account : i have a home loan of 50 lakhs and the maxgaing interst of 7,5 %.
    My emi is 45000.
    I park 20 lakhs for one full year as I would like to have liquidity.
    at the end of the year will the interest be calculated on 30 lakhs (outstanding) loan. (same emi) reducing balance.
    which means that I get interest on my 20 lakhs since my emi will have less interst component. and the parked amount really doesn’t earn interest. ( so such accrued interst being adjusted is not income for me and not taxed. right.
    2. after one year can I convert to term loan by withdrawing 20 lakhs. ( EMI doesnt change any ways)

  10. Hi sir ,
    I am planning to move my loan from hdfc to bank of baroda advantage my interest in hdfc is 7.90 tenure 25 yrs .and bank of baroda offering me 6.80 and in the end of month I save 10000 rs so is that benificial transfer my loan to bank of baroda max gain which cost me around 30000 and in same hdfc if I pay 5400 rs and take hdfc maxgain with interest of 7.4

  11. Hi,

    I am planning to take 75L loan in this month. Bank is saying 7.3% on SBI MAX gain and 6.8% on Term loan.

    I am a salaried employee and additonal cash is not generated every month. I can save 50K per month after paying EMI + Saving + Monthly expences .

    please guide should i go for Max gain or Term loan

  12. Hi. I have been paying my term loan since 5 years. Now my principal amount in EMI more than earlier. Now if I convert to maxgain, will the interest part be again like starting i.e more interest and less principal

    1. Dear Prakash,
      The only difference is in the case of Bank of Baroda, the money which is there in Savings Account is considered for your home loan on daily basis. However, in the case of SBI MaxGain, you have to move the money from a savings account to an OD account. I think in such a situation, the Bank of Baroda home loan is more beneficial.

    My query is drawing power & limit amount which is shown in OD account statement will remain constant or will change on monthly basis.

  14. I am salaried person having liability of home loan max gain Rs.1300000/- I am paying Rs.14235/- PM whereas interest amount varies month to month iu.e 9780 to 10235. Is it beneficial for me or should I convert it into term loan.I do not want to withdrawn fund .

  15. If we go with max gain loan, shall we sanction the loan for 30L and can we ask them to release amount when ever we needed for under construction flat in gated community? For example if we need to pay 25L instalment if we have 20L can we use only 5L and remaining amount for next instalments. Or else depends upon the construction status they will release the loan?

  16. Hi Basavaraj,

    Me and my wife took joint HDFC home loan in 2012 which we transferred to SBI max gain in 2016. Last month we moved to abroad on a permanent basis:

    My questions are:

    1. Any update required to SBI max gain loan OD a/c?
    Usually after few months normal saving a/c’s gets converted to NRO accounts.

    2. I have an apartment in India, so should i get rent deposited in NRO ac?

    3. Do i need to tell my bank to convert my ac to NRO and when should this happen (after 6 months in abroad?)

    4. What is minimum balance I need to maintain in my India Citibank and SBI saving ac’s after they are converted to NRO.

    Any other guidelines pls

    1. Dear Gurwinder,
      1) Yes, you have to inform about your residential status change. Because the EMI auto debit details will change.
      2) Yes.
      3) Yes, once your residential status changes then immediately you have to inform to the bank in this regard.
      4) Check with respective banks.

  17. Hi Basu, I’m on 30% tax bracket 80c is full & have no loans, wanted to take home loan for tax saving purpose. Planning for 28L loan so that max tax benefit I can avail on interest. Pls let me know will normal loan is better or maxgain loan in my case? I have additional money that I can park in OD account but heard interest paid is not tax benefitial? Pls advise.

  18. Sorry I don’t understand this “i cant repay the Principle more than twice in case of Max-Gain for entire tenure”. In max gain can I pre close the loan account.

  19. I m a salaried person .and my spouse has a book store .she earns every month 5000-7000 rs .now we want to purchase a home .and we want increase our business of book store .how is it possible .is the maxgain loan better for us.or regular .what should we do in this situations .plz tell me .

  20. Hi Basu
    Thanks a lot for sharing this. I have one question.

    I dont understand what is bank benefit behind giving max gain home loan..?I mean to say user is getting double benefit…One is no home loan interest on parked money + normal interest gain on parked value…So overall its bank loss..Right?

    1. Double Benefit is a myth..
      The difference between Schedule Interest and Actual Interest is added to your accrued income means increase in drawings power. Whereas normal people assumes that with Fix EMI , the reduction of interest should actually reduce equivalent principle.
      Moreover you can’t repay the Principle more than twice in case of Max-Gain for entire tenure. Unless someone wants liquidity all the times, the normal home loan is preferred.

      1. 1. what is Schedule Interest and Actual Interest ?
        2. why i cant repay the Principle more than twice in case of Max-Gain for entire tenure.

        1. Shashank-1) Schedule interest is as per the amortization table and actual interest is based on the fund you parked. If you not parked any fund, then the interest for that month will be as per schedule. If you parked some amount in available balance, then they calculate the interest which is actual (lesser than the scheduled).
          2) It is their rule.

  21. Hi Basavaraj,
    Thanks for all the suggestions and I really find this blog very useful to understanding about the SBI MAXGain Home Loan.
    I have a question where I didn’t find if its been repeated.

    Have a Maxgain HL loan amount of 40L and and paying the EMI 41000/- since 2014.
    I am planning to pay the principal amount of 25L in coming days.

    Can I request the bank to reduce the EMI amount and Is this possible.
    If not can U suggest me a better plan to reduce the monthly EMI.

  22. Hello Basavaraj,

    Nice Article,

    I have very simple queries.

    Lets say I take loan of 20L and post that I put 5L in my OD. So in simple words I have to pay interest only on 15L. And once I put 5L is there any period till then I can’t take out money from OD account.

    What if I take loan of 20L and put 20L in OD(Considering I need this amount after 2 years), dose that mean I have to pay no interest for next 2 years.

  23. Hello,

    1. I have a SBI MaxGain Loan for 39 lacs @9.2%. The EMI is around 40K
    Now, I have 1lakh from a few FD closed recently.
    A pvt bank offers a 11.5% RD (and FD) compounded quarterly.
    Can you please advice me if I should invest in FD or park this money in my MG Home loan?
    2. Can you also give a simple calculation how a interest component is calculated ?
    (that appears in my monthly statement)
    3. The interest rate shown in SBI site shows BR 8% + 0.65%=8.65%
    But when I inquired SBI they said the interest rate is 9.2%
    Is this because of MCLR? or should I check back at the back again?

    1. Karthik-1) I am not sure which bank offering such high return on RDs. It is up to you to believe on such banks.
      2) Regarding SBI MaxGain? Please check with your bank.
      3) Better you cross check with bank.

  24. Hello Basavaraj Tonagatti,
    Good info sir, can you suggest or compare home loan whit max gain and MCLR loan which one is better for 15 year time as per current rate. as I got to know form bank that they charge different interest rate for MCLR (8.4%) and Max gain (8.8%). since Max gain interest is more by 0.4% now how much additional contribution will make Max gain at par or better option please,.

  25. Dear Basavaraj,

    I am planning to take SBI Max gain HL. My question is related to PM Awas Yojana Loan Scheme 2017. Can i get PMAY scheme benefit under Max gain plan. If yes, can you please explain it as SBI agent saying its not possible.


  26. Hi Basu,

    First of all, let me say that its a wonderful article by you and already cleared most of my doubt. But I still have a questions:-

    I have taken SBI Max Gain loan for 21Lakhs for 20 years and already deposited some extra cash, hence my balance Principal is only 7 Lakhs. And I will be reaching Zero Balance in next 5years. If I don’t close my loan account and keep on paying EMI for complete 20 years. What will happen to my extra deposited cash? And what will happen after 20 years, will it convert back to a normal savings account?

    1. Selvin-When your book balance reaches the outstanding principal (drawing power), then even though your EMI going on, such EMI will be reversed to book balance. Account will be closed after 20 years.

      1. Thanks Basu for your comments. 1 more question:-
        After 20 years, when this account get closed, how can i access my money which is available in book balance?

  27. Hi Basavaraj,
    Great post to explain the SBI Max Gain Loans.
    I have a question here, for SBI HL, the sales guy is saying the “Property Insurance” is mandatory and the bank does not approve loans without buying the insurance. Is this true ? What if I do not want to buy insurance, how can I convince the bank to approve loan ?

  28. HI Basu,

    I have been encountered with the complex situation with Maxgain account. Can you please provide your expert suggestions. Please understand below situation:

    I have taken SBI maxgain home loan with below details (oct 2015):
    Book Balance -37,44,211.00
    Available Balance 10,55,789.00
    Limit 48,00,000.00
    Drawing Power 48,00,000.00
    Rate of Interest (% p.a.) 9.35%

    Now my momentum period was only 12 months. so it was ended now.

    1) My home is still under construction and I am not able to pay full EMI of around 42K. can i extend the momentum period?
    2) i will be not using 48L of loan as only last payment of around 3L is pending to builder. should i reduce drawing power and start full EMI. at least i can get the relief of less EMI of drawing power 40L.
    3) yet bank has not started full EMI and i was paying my interest EMI via different bank cheque. so no standing instruction set. should i set standing instruction/ECS for full EMI or need to extend momentum and start standing instruction?

    Kindly help by answering. will appreciate.

  29. Very informative , thanks a lot sir.Here are my queries , will be of great help if you can revert
    1. The current max gain interest rate is 8.75% over 8.50% for normal home loan for female applicants, so shall i opt for max gain or normal loan. I can save 2 month emi in every three months during one year where my emi is around 20k.

    2) As i am not getting 80c benefit for surplus paid and as such tax relief is less for max gain , is it still better to opt for max gain paying high interest as interest rate is more as i said in 1.

    3) when rbi cuts rates, will it reflect directly on max gain as it does on normal home loan?

    1. Paramita-1) Go for Maxgain if you are expecting some cash which you can utilize it by parking in this OD account. Otherwise, simply choose the normal home loan.
      2) Go for max gain to utilize your idle cash.
      3) For both types of loan it reflects.

  30. Hello,

    I didnot pay the last EMI for SBI MAX gain loan . My question is will the bank deduct last month EMI and current month EMI together?


  31. Sir, I am planning to take a home loan of Rs 9500000 . As i expect to get surplus cash, I plan to take sbi max gain. am i right in thinking that if I break my FDs and put it in margin account then it will be more beneficial as in Fds i earn about6.5 -7.0 % only while in max gain i will save upto 8.95% on the surplus deposited as my principal amount will come down. Please guide me regarding which loan to take. Thanks

  32. Hi Basu,

    Great Article..! I have a question and appreciate if you can clear my doubt.

    Suppose i took a Sbi Maxgain Home Loan of 20 Lacs in December’16 and my EMI is Rs 20K. Now in January’17 if i park a sum of 2 Lac in my maxgain home loan account, how would i get the benefit of interest earned? Condition- My EMI will not change , and as you said above in your article that the Principal amount remain fixed.

    In short, will sbi pay the interest earned seperately in my loan account?


    1. Prateek-When you deposit Rs.2 lakh then the outstanding principal for those period get reduced. Hence, the constant interest part of your EMI will get reduced. This reduced interest will be paid you back in available balance. This is your earning.

  33. Hello Basu,

    I have SBI Maxgain HL since Oct. 2015. If I am right then it is base rate and not MCLR based loan. Is it right time now to switch to MCLR type? Thanks


      1. Thanks for the prompt reply. Current IR is 9.50%. With MCLR the interest rate will vary annually or quarterly. so does it mean IR can go above 9.50 or will it remain bel0w it for loan period?

  34. hi

    I have took SBI maxgain loan of 20 Lakh for 20years loan period . If I prepay amount of 3 Lakh. then how much interest will be reduced and will bank reduce my loan period?

  35. Hello Mr. Basu,

    the building is in construction and I have Max gain HL of 35 L, of which 15 L has been disbursed to builder and I deposited 15L to bank.
    Now the bank is still having 35 L as initial. Can I request bank to disburse 35 L to builder or only disbursement of the remaining amount 35-15 = 20 L is possible?

    Thanks and Regards,

  36. Hi Basavaraj,

    Could you pls explain the difference between SBI MaxGain and (Central bank of India) Cent home double plus products.


  37. Hi Basu,
    Really informative article!

    I have a home loan going on since the past 3 years,
    I recently received another offer from a different nbfc, to port my loan,
    What are the clauses you think I should be taking care of and paying extra caution?

  38. Hi Basu,

    I am planning to book a under construction flat costing about 75 lac, for which I need home loan of 58 lacs.
    I would like to get the home loan from SBI. Between Maxigain, Flexipay, and normal home loan, which one will be suitable for me and will get maximum Tax benefit

    Please suggest and highly appreciate your kind advice.

    Thank You

  39. Dear Sir,

    * I Have SBI Max Gain (OD) Account.
    * In FY 15-16, My DP=AB, means BB=0.
    * That’s why Actual “DEBIT INTEREST” part is zero.
    * My EMI is going on.
    * PROVISIONAL HOME LOAN INTEREST CERTIFICATE shows considerable amount as “Interest” part (downloaded from SBI online banking)

    May I able to get Sec.24 B Tax benefit ?

    1. Dear Sir,

      I have same question as mentioned by you. Please can anybody try to answer this.

      Kind Regards

  40. Hello Basavaraj,

    if bank loan agreement is done and not a single request for disbursement will be done from our side. Will this create any kind of problem?

      1. thanks Basavaraj. I was skeptical because some times even the borrower wishes to close the loan the bank either levied penalty or not allow for loan closure before tenure. I thought for non payment request also they may impose such penalty.

            1. Hello Basavaraj,

              the first disbursement of 20L from Bank is gonna take place soon. I am having 15 L as a saving. I opted for pre-EMI. The building is under construction.

              I am confused whether

              1) to pay 15 L to builder ?

              2) when I can pay 15 L back to bank after 20L disbursement or have to wait till possession. Is there any such limitation for repayment of pre-EMI.


  41. Hi Basava,
    I need to understand that under SBI Home loan plan, whether the term loan plan is better of Maxgain plan is better. I am unable to understand the differece between both the plans offered by SBI. Request for the needful please.
    Thanks in advance

  42. Hi Basawaraj,
    I have applied home loan in SBI. Since this is my third property, so I am not eligible for SBI Max Gain product as per SBI representative. I will get normal home loan.

    My first question: is it valid constraint for maxgain product?
    Second question: – Suppose I will close my first property outstanding balance after 5 years. Then, am I eligible to convert my normal home loan to SBI Max gain for my third property?

    Jayanta Kumar

  43. i am very much confused iabout sbi max gain benefit.IF i parked INR 50000 /-as surplus amount in my sbi home loan account.WHCIH IS BENEFIT? HOW CAN I CALCULATE PER MONTH?

    1. Mahesh-When you deposit any surplus then you will earn interest on such surplus, which is equal to your loan interest. Such interest will be again parked in available balance. What more confusion for you?

  44. Sir, I took 30 lakhs maxgain home loan for 20 years from sbi which was disbursed on 24-09-2015. I opted for EMI @ 30000 p.m. on 3rd of every month. Is the date of EMI is correct or shall I go for 28th of every month so that i can park the emi amount for 25 days every month in my saving account thus earning interest on emi amount or putting emi date 3rd of every month will park my emi amount in maxgain account thus earning interest on emi amount more than in saving account. Pls advise.

    1. Kishore-Interest on such parked amount is calculated on daily base. Hence, you may not feel the benefit on immediate EMI, but you get the benefit in next month EMI. So don’t change the date.

  45. R/Sir,
    I have a sbi max gain HL act sanction 20 Februar [email protected]% intrest rate.Pls tell me what is intrest rate w.e.f. september 2015 my old sbi max gain HLPls also tell me My above act. Presently EMI per lac ?ok & Thanks.

  46. Hi Basu,

    I have seen on Encumbrance certificate i have seen one field Nature & Mrkt. value,Con.Valu. Can you please explain all those .Especially i could not understand Con.Valu.

  47. The flexibility in the payment also affects the negotiations on pricing. The advantage of drawing payment on requirement basis adds to the benefits with choosing the payment plan with builder, provided approved by SBI.

  48. HI Basava.

    It was very nice article . What i understand is that Major Benefits of the Max gain scheme is below .

    1) You can reduce the total interest you end up paying to the bank compared to normal loans during the loan tenure
    2) You can withdraw the deposited money anytime .

    But one thing i dont understnad is instead keeping the money in savings bank which gives an interest rate of 4 putting in max gain will give you 9.75% and that interest accrued either you can withdraw or if you leave it as it is you can save more interest monthly .

    Is that right ?

  49. Dear Sir,

    I have took SBI maxgain loan of 12Lacs for 25 years loan perod .My question is if i prepay amount of 1Lacs rs. then how much interest deducted then after and is there any deduction in my loan period??

  50. Hello sir, we are thinking of applying maxgain SBI home loan… Can u suggest whether to opt for 10, 15 or 20 year as tenure period….. Which will be beneficial… If already applied is it possible to reduce tenure period at a later stage….

  51. Sir,
    I am planning to buy a second hand flat around 55 Lacs(+ registration) on may-2015. I have cash around 40Lacs at hand. Should i use the full amount from hand and rest is from home loan OR should i take a part of amount from hand ? Please also mention the better tenure period for the loan.
    fyi – this is my first property.

    1. Nelson-Living on credit is always bad. You may be potential customer to lenders. But they are into business. Also whether to go for loan or utilize the cash is depend on purely yoru call. Like how you want to utlize the cash in hand, in case you go for loan. Otherwise, how the saved EMI be utilized properly to grow your welath. I can’t answer on this (because even I don’t know your tax issues). But to me living on loan is not suggested.

      1. Thank you for your opinion sir. your financial tips helps many of us. Thanks for the great support.

  52. Hi Basavaraj,
    I have the Maxgain account from SBI and parked some surplus amount there. This is showing up as available balance in the statement. However, I am not able to with draw any amount from this account. In the transfer page only the SB account is displayed as the from account. I have not received any cheque book or ATM card for the OD account either. Do you know any reason for this and how to fix it?

  53. Hello Basavaraj,

    I am new to your website but find it very useful in understanding a lot of financial jargons.

    I am planning to buy a house soon and will expect to have surplus cash in batches.

    What would be the best way to go ahead ? I dont have a SBI account as of now. Should I open one first and closer to the purchase, get a SBI max home loan OD account ?

    Also, from your presentation, what I understand is, we can pay towards the loan taken i.e. pre -closure of loan in batches and there will be no charges on that ?

    Thanks once again


  54. sir please throw some light on topup loan in home loan also….I mean I want to buy a flat by taking 24 lakh home loan for 25 yr and personal loan of 5 lakh for 5 year and so I want to know wheather I can close my personal loan after one year or two by taking topup loan as it was given somewhere in other site that top up loan attracts leaser interest than personal loan

    1. Anuj-It is better to go for top-up loan than personal loan. Because personal loan interest rate will be higher. But how much top-up they approve depends on the appreciation in property and the outstanding balance.

  55. Hi basu thank u for comparing both the types. My doubt is what’s d rate of interest calculated for d excess cash deposited & added to the available balance.

  56. hi Basu ,or t
    Thanks for the info .

    need some suggestion .

    i just checked – the current interest rate for SBI maxi gain is – 10.15 (base rt +30bps)=10.15 and this is a floating rate.
    to be frank , i am a bit afraid of floating rates , it may go up any time and i am supposed to pay the equivalent when ever it raises, but if the rate reduces , well it dosnt occur very often .

    interest rate increased vs interest decreased in a year on an avg , i can see that the banks had raised the interest rates immediately when ever there is an opportunity .even then for me to benefit from a less base rate during tenure, i have to pay the conversion fee..

    there a fixed interest rate from ICICI for 10 years – 10.25 = fixed rate for the entire 10 year and then floating rate (20 year total tenure) – looks like a good deal form me , what do you say ?

    -tension free , i am planning to preclose at the 11 or 12th year when i becomes floating, so there is no preclosure fee during floating.

    if floating rates go down further during the tenure , i am at loss , i dont think so that there would be further decrease .do you feel that there would be a further decrease?.

    and maxigain from SBI –

    1)can be used as OD account – can plan the interest rate based on the surplus amount deposited ,but you can see the actual difference only if the surplus amount is a 6 six figure amount – i dont have that much cash in hand….
    2)the difference between the two loan products (ICICI ,SBI) interest rate , i am just paying 0.10 difference of rate(10.25 ICIC-10.15 SBI)

    please advise if my direction is correct for ICICI fixed loan @ 10.25 , i dont believable in floating nowadays and looking at the historical floating rate fluctuation data ,its risky.

    thank you.

    1. Deepak-I understand your apprehension. But considering the current trend of interest rate downward, you can opt for floating rate. Regarding MaxGain, it depends on frequency and quantum of amount you deposit. More deposit for more days then more earning. You can go fixed rate at later stage. Because as of now interest rate is at southward. Again if you feel you expect some surplus in frequent mode then SBI MaxGain is good.

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