Difference between SBI MaxGain and Regular Home Loans

View Comments

• Namste sir,
  our town sbi branch sanctioned normal home loan.as im in business its better to switch to max gain? is it possible to take max gain plan?

  • Dear Siddu,
    Yes, if you are expecting certain lump sum in between along with your regular income, then better to switch to MaxGain.

• Dear Basu,

  I have taken Max Gain home loan.

  Made payments on time for the financial year 22-23

  The EMI is 64k but the 'home loan interest certificate' shows total payment made of only 648k (interest+ principal).The interest amount (online statement) and on Home loan interest certificate tally (374k).
  But amount paid towards principal is 329k (as per online bank statement) but Home Loan Certificate only mentions it as 274k ( difference of 55k).So total the difference is for 119k though for I paid 768k (Apr to Mar).

  My monthly interest on loan is calculated on last day of each month, whereas EMI is taken out on 10th day of the next month.

  Why is there a gap in principal amount paid (55k) and the ,yearly emi amount paid 768k vs 648k on home loan certificate?

  Thanks

  • Dear Ankush,
    Whether you raised this with the bank?

• 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,
  Rajnish

  • 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.

• 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.

  • 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.

• 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?

  • 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.

• 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.

  • 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.

• 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..

  • 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.

• 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.

  • Dear Shivaji,
    Strange...are they ready to give it in writing?

• 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

  • Dear Vaibhav,
    Hard to predict what went wrong. Better you ask for a detailed statement.

• 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.

  • Dear Venkatesh,
    Raise an issue at higher level.