Topic: How does SBI Maxgain home loan Works

This message was edited 1 time. Last update was at 03/12/2009 09:18:15

Hi,

I had confusion on how SBI's Maxgain home loan works, kindly clarify me for the below scnerio.

In addition to the normal EMI, if i had placed an additional amount of lets say 5,00,000 in the Maxgain AC will my prinicpal amount will be decreased by 5,00,000 during this period and interested will not be calculated on this amount ?

The customer care at SBI tells that only the interest earned on that 5,00,000 will be decreased from the principle instead of total 5 Lakhs decrease in the principal amount..

Kindly clarify me regarding this.

Thanks in advance.

Regards,
Anil.

Anil,

As I understand from their brochure that your principal should reduce by excess amount (i.e. 500,000) and daily interest should calculated based on reduced principal amount.

Please note I am also planning to take SBI Max gain loan. Above statements based on my understanding from their brochures. Please let us know if you find otherwise.

Thanks
Ganesh

Really thanks for this information but i need some detailed information on this....

This message was edited 2 times. Last update was at 02/02/2012 13:09:20

A home loan will help any one to purchase a desired house, having savings just for the down payment. After that, the borrower will make fixed payments monthly, based on size of home loan, of home loan extend (it can be 10, 15, 20, 30 years) and on mortgage rates.
The mortgage rates can be fixed or adjustable after a period of time, like each year or each three, five years, etc. The monthly payments for a home equity loan include principal and interest.
The interest is estimated to the hall loan and it’s extend. The first 5-7 years of mortgage payments are mostly made toward interest (about 70%)Basically the interest-only loan makes it easy for people, at a period of time, to deal with unexpected expenses, to finance home improvements, to pay down other high-interest depts.
After the interest is paid on an interest-only home loan the monthly payments will include the principal only. Usually these payments will be higher than initial interest payments.

hi , i am having sbi maxgain loan. Its really nice. In maxgain your housing loan account is an OD (Overdraft facility) account. So u can deposit and withdraw amount when ever u wish. For this deposit in od account the interest will be NIL.

I plan to go for SBI MaxGain scheme.

Please clarify the following:

1] Is there differential ROI / charges like pro fee, doc charges, etc. for normal HL and MG?

2] Do u pay regular EMIs or only interest accrued is reduced from the amount deposited subject to maximum drawing power?

3] In case of under construction property wherein you pay / bank disbursement is linked to stage of work how does MG work?

4] Also kindly clarify regarding the loan availability, ROI, etc for furniture for new house.

Regards,

Piyush
mailto: piyush.jamgaonkar@yahoo.com

i have a SBI maxgain Home loan account.

can anyone pls clarify the following:

in my agreement it is mentioned that "2% of the amount prepaid will be be levied" as the prepayment closure amount. i have been pumping money from my salary in this account. the outcome of this, is my interest at the end of month is less, as the outstanding balance is less (subsequently, when the outstanding balance is high, the interest debited at the end of the month is also high). so i want to know, whether i will be charged for the current outstanding value or the whole amount i have been putting in this said account.

rgds

I want to purchase a land worth 600000 rs & build a house worth 10,00000 rs.My take home salary is 50000rs as a govt servant.I want to repay the loan in 10 years. how much amount I can get,in how many installments &what monthly installment I'll have to pay.

Greetings To You. Welcome to kevin walter based in united kingdom as part of its welfare package is currently offering a floating loan at 2% interest rate without any collateral security.This is to help individuals and companies reach their financial objectives. * Personal Loan (Unsecured) * Business Loan (Unsecured) * Debt Consolidation Loan * Improve your home Please, provide us with the following: Full Name....... Home Address.... Phone:.......... Mobile.......... Country........... Occupation:........ Sex:............... Age:.............. Amount Needed...... Loan Duration:........... Need For Loan Application..... Have you apply before?......... All replies should be forwarded to Mr kevin walter Loan Facility Officer E-mail:benkoloan_agent@yahoo.com As soon as we receive the application, Then we will process your Loan application for approval Thanks and Best Regards.
Mr kevin walter

Dear All

As per my understanding.

Let the O/s amount of loan at any start of any month be X
and Amount deposited in your current account (for whole of the month) is Y
Then

Monthly Eligible Interest# (I) = (X - Y)*Interest Rate * 30/360
Monthly eligible deduction in O/S principal = X - I
Net O/S at the end of month = X - (X - I)

#These calculations change as the interest component is calculated on a daily basis.
-Gaurav

LOAN ACCOUNT: (1). Based on your loan amount, tenure and interest rate your EMI amount and EMI instalments are initially declared. (2). EMI comes with pricipal portion and interest portion . (3). Your EMI amount will never changes under any circumstances. (4). But your EMI instalment will change, how? there comes OD account.

OD account: (1). If you do not deposit or withdraw any money from your OD account your EMI instalment will not change. but if you do operation in OD account then EMI instalment will vary based on the interest of your depost money/dposit date and withdrawal money/withdrawal date. (2). The bank calculate interest at the end of the each month (period) based on your deposit/withdrawals on your OD account. If the interest is in favour of you, the bank will not give you interest but inturn it reduces the interest portion of your EMI for the forthcoming instalment and since your EMI is fixed your principal outgo for that month is increased. (4). So your principal balance of laon account is reduced and hence your number of EMI will come down. (5). If interest calculated during the period is in favour of bank your loan account principal balance will increase and so your number of EMIs will increase. (6). DEPOSIT FIRST WITHDRAW NEXT. NEVER WITHDRAW MORE THAN THE DEPOSIT. ENJOY REDUCED EMIs.

ALL THE BEST.

Yours,
PETHU..

Thanks PETHU....

Very nice explanation.....................

Thanks pethu.
I searched a lot but you have explained it in concise, clear manner.
Amrita

What is the meaning of Drawing power and Limit in Home loan account (SBI)?
Are they same as Loan Sanctioned ammount.

Hi

Can someone answer following queries wrt to Maxgain account working.

1. Can I withdraw money from MaxGain OD account by online transfer ( Using internet) OR whether withdrwal is only allowed through Check & deit card?

Thanks

This message was edited 1 time. Last update was at 02/02/2012 13:11:40

hi,

I had confusion on how SBI's Maxgain home loan works, kindly clarify me for the below scnerio.

In addition to the normal EMI home loan , if i had placed an additional amount of lets say 5,00,000 in the Maxgain AC will my prinicpal amount will be decreased by 5,00,000 during this period and interested will not be calculated on this amount ?

Kindly clarify me regarding this.

Thanks in advance.

Regards,
lk

@lk - check Pethu explanation. Clear and consise

I have worked out a worksheet which calculates the amortization and total interest paid for SBI Max Gain type of loan. Please see, use or even download it at https://spreadsheets0.google.com/spreadsheet/ccc?hl=en&key=t1FV7-lccFsNa-JPGDuK8Bg&hl=en#gid=0.

Regards,
Soju

I have worked out a worksheet which calculates the amortization and total interest paid for SBI Max Gain type of loan. Please see, use or even download it at https://spreadsheets2.google.com/spreadsheet/ccc?hl=en&key=t7ttnewI1CMmL2ybuOgAVvw&hl=en#gid=0
Regards,
Soju

Not able to download the xls

Loan amount of 15 lakhs is sanctioned to me for 5yr term by SBI under maxgain scheme.

Rate of interest is 9 %

EMI told to me is 31204.

The payment is construction linked.

I have taken disbursement of 2 lakh.

I will take next disbursement of 3 lakhs after 3 months.

I am unable to understand out of EMI of 31204, how much would be interest & how much would be principal component for fist three months , then from fourth month how much would be the two components from 4rth month to 6 month
Amrita

Is SBI Maxgain home loan still continuing as I am told - the product is discontinued .....

How is the interest rated on o/D account calculated? Is it the same as on FD?

Anonymous wrote:I want to purchase a land worth 600000 rs & build a house worth 10,00000 rs.My take home salary is 50000rs as a govt servant.I want to repay the loan in 10 years. how much amount I can get,in how many installments &what monthly installment I'll have to pay.

Anonymous wrote:I have worked out a worksheet which calculates the amortization and total interest paid for SBI Max Gain type of loan. Please see, use or even download it at https://spreadsheets0.google.com/spreadsheet/ccc?hl=en&key=t1FV7-lccFsNa-JPGDuK8Bg&hl=en#gid=0.

Regards,
Soju

The above link does not work. Use the following link instead. https://spreadsheets2.google.com/spreadsheet/ccc?h...ewI1CMmL2ybuOgAVvw&hl=en#gid=0

In max gain home loan a/c, if one deposit the amount excess of montly installment due in OD account and not want to pay montly installment as per schedule. It is possible?. If not ,any charges is there for non payment of installment ?.

Hi !
Above links are not working. If possible will you please give another link. It will be very helpful to us.

Thanks in advance.

Ghansham

Hi,

I'm in the research process for Homeloan and a few of my friends recommended SBI Max gain. My take home salary is 55000 and I dont have any prior loan. I'm buying property worth 80Lakhs and would need a homeloan of approx 30 Laks.

I have gained loads of details from the above replies, but just wanted to check on any caveats of this Loan scheme. Can anyone please advise on the "be-ware of" points while taking SBI home loan, and what would be the best way to make most of this loan ?

Appreciate quick response
Divit

Sir.
How exactly this Max gain deposit helps to Lonee?
What is the interest rate this max gain deposit earns?
Is this earned interest is deducted from principle amount or from EMI?
Can this Max gain deposit can be withdrawn any time?

Anonymous wrote:Sir.
How exactly this Max gain deposit helps to Lonee?
What is the interest rate this max gain deposit earns?
Is this earned interest is deducted from principle amount or from EMI?
Can this Max gain deposit can be withdrawn any time?

Anonymous wrote:Sir.
How exactly this Max gain deposit helps to Lonee?
What is the interest rate this max gain deposit earns?
Is this earned interest is deducted from principle amount or from EMI?
Can this Max gain deposit can be withdrawn any time?

SBI is telling they are now giving maxgain facility only when u have your salary ac in sbi. is this true.

i had already takken home loan sbi but maxgain is not takken.
before 4 month,
should i take maxgain.

SBI MAXGAIN works like a current amount. U have the flexibility of depositing or withdrawing the money.Your EMI will remain fixed. U can have online access,cheque book, ATM,etc for this account.
Let u suppose u have taken a loan of Rs 10L and EMI comes out to be 13000 /month.
Assume , u have deposited some amount Rs 3L into yr account. Now the EMi will remain same i.e. Rs 13000 , but the interest will be calculated for Rs 7L (10L-3L) for the preiod that amount stays in yr account. It means that more principal amount in deducted towards your loan.
Thats why it is very good. If you want your money just withdraw it at any time

Anonymous wrote:I want to purchase a land worth 600000 rs & build a house worth 10,00000 rs.My take home salary is 50000rs as a govt servant.I want to repay the loan in 10 years. how much amount I can get,in how many installments &what monthly installment I'll have to pay.

[b] will you please know my home lone detail

my sbi account no. is 111833566928 i want account a/c details

I have a taken home loan from sbi under easy home loan on 30/03/11. As per arrangement letter interest rates during first year is 8.75 % 2nd and 3rd year 9.5 % respectively. As per my understanding rates are fixed for first 3 years but bank deducted interest rates as floating whenever base rate increased they increased EMI. may kindly advice

Hi,
I have taken 1200000 House loan + 36000 SBI life as insurance. Now SBI generated twio accounts one MAX account and another Loan account. Max aacount showing 11,00000 balance afte 1st disbursement of 1,000,00. and an interim interest 664 Rs is showing in Max acount after one month. While Loan accout is showing 6000 disbursed and 66 Rs as standing interest. My first EMI has been cleared through ECS of 13,844 Rs. Now my question is?
1. Whether I have to deposite money separately to these accounts? ( against the inreset amount showing?)
2. If I could deposite a lump money in both of the accounts, what would be the faith?

Dr Tarakranjan Gupta, , Bangalore

1. Whether I have to deposite money separately to these accounts? ( against the inreset amount showing?)

Answer: In the (saving/current) account from where EMI is deducted by ECS, you need to keep a minimum balance every month which should be greater than or equal to EMI amount

In your loan account you can put surplus money, which you can withdraw any time

2. If I could deposite a lump money in both of the accounts, what would be the benefit?
Answer- keep maximum amount in Loan account and only amount equal to EMI amount in Savings a/c every time EMI is going to be deducted.

Hi,
Can someone help me understand if the same facility of reduced iterest rate (available in SBI Maxgain) is also available for the SBI EASY home loan product?
I dont see a way to transfer money from the OD/HOME LOAN account to my savings account.
I dont want to get stuck after paying a bulk amount into my OD account.
Any help is appreciated.

hi,

SBI provides internet banking facility to OD/ loan account.

You will have to visit your SBI branch and give an application with request to transfer rights in the internet banking

Me too donot have the transfer rights. I approached my SBI branch but they say that transfer Rights cannot be given to my OD/loan account because my apartment unit is still in construction and final disbursement is yet to be done.
Is this true? Can they deny the transfer rights?
Please help what to do next?

yes... transfer rights will be given only after possession of the property.

lgoutham wrote:Hi,

I had confusion on how SBI's Maxgain home loan works, kindly clarify me for the below scnerio.

In addition to the normal EMI, if i had placed an additional amount of lets say 5,00,000 in the Maxgain AC will my prinicpal amount will be decreased by 5,00,000 during this period and interested will not be calculated on this amount ?

The customer care at SBI tells that only the interest earned on that 5,00,000 will be decreased from the principle instead of total 5 Lakhs decrease in the principal amount..

Kindly clarify me regarding this.

Thanks in advance.

Regards,
Ravi

lgoutham wrote:Hi,

I had confusion on how SBI's Maxgain home loan works, kindly clarify me for the below scnerio.

In addition to the normal EMI, if i had placed an additional amount of lets say 5,00,000 in the Maxgain AC will my prinicpal amount will be decreased by 5,00,000 during this period and interested will not be calculated on this amount ?

The customer care at SBI tells that only the interest earned on that 5,00,000 will be decreased from the principle instead of total 5 Lakhs decrease in the principal amount..

Kindly clarify me regarding this.

Thanks in advance.

Regards,
Anil.

SBI Maxgain (Home Loan as an overdraft)

An innovative and customer-friendly product to enable you to earn optimal yield on your savings and minimize interest burden on Home Loans, with no extra cost.

The loan is granted as an Overdraft facility with the added flexibility for you to operate your Home Loan Account like your SB or Current Account.

The product servesto minimize yourinterestcost by enabling you to park your surplus funds in ‘SBI-Maxgain’ (with the benefit to withdraw the surplus funds whenever you require), specially in the wake of low yields from other deposit/ investment avenues.

SBI Maxgain (Home Loan as an overdraft)

An innovative and customer-friendly product to enable you to earn optimal yield on your savings and minimize interest burden on Home Loans, with no extra cost.

The loan is granted as an Overdraft facility with the added flexibility for you to operate your Home Loan Account like your SB or Current Account.

The product servesto minimize yourinterestcost by enabling you to park your surplus funds in ‘SBI-Maxgain’ (with the benefit to withdraw the surplus funds whenever you require), specially in the wake of low yields from other deposit/ investment avenues.
HEMANT SETHIA

Anonymous wrote:Hi

Can someone answer following queries wrt to Maxgain account working.

1. Can I withdraw money from MaxGain OD account by online transfer ( Using internet) OR whether withdrwal is only allowed through Check & deit card?

Thanks

Yes you can withdraw money from OD account online, if u have SBI savings account they will link loan account with savings account and you transfer money both ways from savings to loan and from loan to savings.

SBI in the financing process, also digital pocket scales left us with a very deep impression.

Anonymous wrote:Sir.
How exactly this Max gain deposit helps to Lonee?
What is the interest rate this max gain deposit earns?
Is this earned interest is deducted from principle amount or from EMI?
Can this Max gain deposit can be withdrawn any time?

Anonymous wrote:Hi

Can someone answer following queries wrt to Maxgain account working.

1. Can I withdraw money from MaxGain OD account by online transfer ( Using internet) OR whether withdrwal is only allowed through Check & deit card?

Thanks

Once you have your Online account setup, you can make Deposits or Withdrawals online thru INTERNET to your SBi Maxgain account. Each withdrawal will be charged Rs 5.

Anonymous wrote:I have worked out a worksheet which calculates the amortization and total interest paid for SBI Max Gain type of loan. Please see, use or even download it at https://spreadsheets0.google.com/spreadsheet/ccc?hl=en&key=t1FV7-lccFsNa-JPGDuK8Bg&hl=en#gid=0.

Regards,
Soju

how to open this spresd sheet. give us gmail login and password

I want to share my experience and knowledge about SBI Maxgain.

Few points which I want to convey as these points make context for my explanation about Maxgain Product. (So my comments are based
on my personal case. It may differentiate in some cases.)

This is the first time I have taken any home loan.

This loan was taken for ready to occupy flat.(Directly from Builder hence all amount was disbursed in one go)

I came to know about SBI Maxgain from Google search.

My case was processed in Specialised Housing Finance Branch (not any PBB) (Yes it makes a huge difference in Loan processing timeliness)

Loan Application:
(Please let me know if you have any query on any point)

1. Just go to SHFB and ask for Form, discuss your case with Geetha Madam (she is very cooperative, even after approval and disbursement, if you have any query/issue she will help you out).

(*I personally recommend to go to Specialised Housing Finance Branch, if it is available in your city, no matter how far from your home, it will be worth, avoid any nearest SBI Branch, because if you will apply at PBB, they will not properly check you file and directly send it to RACPC center then in case of any missing documents or information they will contact Branch which further will contact you, this whole process consumes a lot of time and you will get frustrated, whereas in SHFB you file will be processed within those Four walls their SLA is 5 working days!!!)

2. Ask for Home Loan Application form. At the end of the form there will be checklist, Go through that checklist and If you have any query ask on the spot. ( Please note you will have to produce all the documents listed in checklist, If you are not able to you will have to give a proper justification for that).

3. Ask for SBI Panel Lawyer and Evaluator, she will provide you the contact numbers.

4. Contact SBI Panel Lawyer and Evaluator, fix an appointment with them ask them when they can give reports (they will take max 4-5 working days) (their official fee to this is Rs 1500 each, dont pay more that this)

5. Collect both the reports, Fill Application Form, Collect all the documents as listed in checklist (with xerox copy of each document) and visit the branch again.

6. Ask Geetha Ma’m to check all the documents, she will check and if everything is fine, she will start processing on your file. She is bound to process your file within 5 working days.

7. Withing 5 working days, you will get confirmation that your loan has been sanctioned. (Processing will begin only when your documents are complete, hence minimal chances of rejection)

8. Ask for disbursement as and when you want.

9. If you have a savings A/c with SBI ( Any Branch) they will link Maxgain A/c with that Account. Also you can opt for EMI as standing instruction from that savings A/c

10. After Registration of Home/Flat, bank will take the Absolute Sale Deed, and after that they will give you the transaction rights of your Loan A/c i.e. you can deposit and withdraw from your A/c. Sanctioned limit will be you Sanctioned Loan Amount.

11. You can operate your account like your normal A/c i.e. deposit, withdrawal, Cheque issuing, NEFT, RTGS transactions etc.

12. If you have linked your Loan A/c with your Savings A/c then you can instantly transfer amount from Savings to Loan A/c and vice versa.

13. You can get your Savings A/c Debit Card linked with Loan A/c and with same Debit card you can operate your Loan A/c also.!!!

How it works (and makes a difference than any other Loan A/c):

*Just for an example and to make it easier to understand, I am assuming that you have got Loan sanctioned of 25 Lacs, for 20 years with annual ROI as 10% under SBI Maxgain.

Imp Point, your EMI:
- Makes more sense just in case if you are going to operate your account as any other Loan A/c
- Just to provide you certificate of Principal and Interest you paid on you loan A/c in a particular financial year (if you are going to operate as SBI Maxgain A/c with full facilities that it provides)
- Just to ensure that you are paying your Payments Regularly.

Bank will ask to give you the date of EMI and you can fix any (yes any) and Bank will fix Standing instruction on that date And also will ask to fix EMI amount if you want to pay more than the minimum as per your Loan Amount i.e. if your EMI as per your Loan Amount comes as Rs.24549.00 you can pay more also like 25000 or 26000 or as much as you want that will reduce your Loan Tenure depending how much you want to pay more.

If you are going to place your Savings your EMI does not matter much in Maxgain (But you will have to fix a date and amount for EMI)

Irrespective of Date of EMI on the last of every month, your Maxgain A/c will be debited with Interest Amount (that will be calculated on the basis that how much you borrowed from Bank in that particular month, on the basis of daily reducing balance, I’ll explain later or another post, how to calculate it)

Maxgain A/c theory is very simple, If your Loan of 25 Lac was disbursed (Just assume) on 1st March and you got or you have savings of Rs. 15000 and on 7th March you deposited the same in Loan A/c (ie on 7th) after that till 31st March you have not withdrawn or deposited any amount, then on 31st your account will be debited with Interest for that month (total 31 Days), from 1st to 6th Amount you borrowed was 25 Lac and you 7th March you deposited Rs. 15000 hence from 7th to 31st March you borrowed 24 Lac 85 thousand, so on an average you borrowed Rs 24,87,903 per day in March. Formula:[(2500000*6+2485000*25)/31]

So Interest Charged for that month will be Rs 21130.14 which otherwise would have been Rs. 21232.88 i.e. you saved Rs. 102.73 by just depositing your savings of Rs 15,000 in your Loan A/c, other way round you got interest of 10% per annum on Rs. 15,000 which in normal savings A/c is just 4%.

If rather than Rs 15000, you would have deposited Rs 1,50,000 on 7th March (and, just assuming, withdrawn ed same on or after 1st April ) you would have saved Rs.1027.39 !!! Just by putting your savings in Loan A/c, with flexibility to withdraw it any time!!!

Dear sir,

I have taken maxgain sbi home loan.

I have amount X is savings accunt.
Have outstanding locan (disbursed) of amount Y in my OD account.
The monthlyinterest outgo is based on principle Y, It should be based on Principle (Y-X).

where did I do wrong?

Thanks

lgoutham wrote:Hi,

I had confusion on how SBI's Maxgain home loan works, kindly clarify me for the below scnerio.

In addition to the normal EMI, if i had placed an additional amount of lets say 5,00,000 in the Maxgain AC will my prinicpal amount will be decreased by 5,00,000 during this period and interested will not be calculated on this amount ?

The customer care at SBI tells that only the interest earned on that 5,00,000 will be decreased from the principle instead of total 5 Lakhs decrease in the principal amount..

Kindly clarify me regarding this.

Thanks in advance.

Regards,
Anil.

lgoutham wrote:Hi,

I had confusion on how SBI's Maxgain home loan works, kindly clarify me for the below scnerio.

In addition to the normal EMI, if i had placed an additional amount of lets say 5,00,000 in the Maxgain AC will my prinicpal amount will be decreased by 5,00,000 during this period and interested will not be calculated on this amount ?

The customer care at SBI tells that only the interest earned on that 5,00,000 will be decreased from the principle instead of total 5 Lakhs decrease in the principal amount..

Kindly clarify me regarding this.

Thanks in advance.

Regards,
Anil.

Anonymous wrote:Hi,

I'm in the research process for Homeloan and a few of my friends recommended SBI Max gain. My take home salary is 55000 and I dont have any prior loan. I'm buying property worth 80Lakhs and would need a homeloan of approx 30 Laks.

I have gained loads of details from the above replies, but just wanted to check on any caveats of this Loan scheme. Can anyone please advise on the "be-ware of" points while taking SBI home loan, and what would be the best way to make most of this loan ?

Appreciate quick response
Divit

i have taken SBI home loan easy as i was not aware of SBI maxgain at that itme,can i convert my home loan to maxgain

What is called drawing power in maxgain home loan

In SBI max gain plan you will be charged very less around 8.50% interest and almost same for the first three year on the loan of upto 50,00,000 loan.This plan of SBI is great and can be very helpful for many people

Sir,
I took a maxgain loan of Rs.20 lac in the year 2008. I had been paying regularly my EMIs. As on date my loan outstanding is around Rs.18 lac. My query is that, can I withdraw any amount from my account if I have any demand.

Thank you in advance.

Regards

Suren Babu
Hyderabad.
# 09985446622

Hi: Any body know whether I can convert my regular housing loan to Max Gain to get benefit?

fgh

Ok I just took a Maxgain and here is how it works.

1. Bank loans you the home loan as Over Draft. You get one more a/c attached with your SB a/c named as OD a/c.
2. The limit on the OD is set when the bank approves you the loan.
3. Whenever there is a disbursement, bank will disburse amount from OD until it reaches the set limit.
4. During the period when the partial loan has been disbursed and house has not been registered, you can transfer your excess funds to your SB a/c and from there, you can transfer the money to your OD a/c. The catch is that until 100% disbursement and house registration, the transfer is one way. i.e you can deposit but cannot withdraw.

Ex: say your loan is approved for 1 Lakh and only 25K has been disbursed yet. Tomorrow if you transfer 5K to your OD, your 5K will indirectly be treated as a prepayment. So, from the day you transferred 5K to OD, you will pay interest on lesser amount ( until you withdraw that 5K back, which cannot be done until 100% disbursement and house registration).

5. After 100% disbursement and house registration, bank will issue you a cheque book and a card whioch will allow you to do the transfer both ways. i.e you can nopw transfer to OD a/c and take it back as well whenever you like.

Overall max benefit when you keep your extra funds in OD so that interest can be saved. You cna compare it with a prepayment which can be taken back whenever you want.

Just be careful when you transfer funds to OD until house is registered as in that period it is a one way route. If you deposit, you cannot withdraw back.

Sanjeev

Dear Brethren,

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Apply for soft humanitarian loans. with zero interest and five years repayment time.

Orsam Gift (gift.sacred@yahoo.com)

Let me put some more clarification -

You can see various amounts in max gain account -

Available Balance is the amount that you can withdraw any time.

Book Balance - Is the amount on which bank will take interest. This shows in negative.
At any point of time this amount is equal to total debited from account with interest till this point of time - total credited to account including EMI till this point of time .

Limit and drawing power - They both are same at any point of time.
This is the your remaining loan amount excluding your available balance. this goes on decreasing as you pay EMI. It decrease by amount Total EMI paid for month - Total interest for that month.

If any of the above statement is wrong, correct me and we can finalize one common draft of this SBI max gain.

Hi: Can i convert my SBI Housing Term loan to Maxgain?

hi,

i had taken housing loan from SBI in 2007 and now they are charing 13.25% interest where as bacnk broaches says current interest rate ins 10.75 only. why i am chaged 2.5% interest extra

hi

this is best home laon poduct that i have seen. It gives you the flexibilty to put ot take the access money into this maxgain account. It also gives you ATM,cheque book, internet banking facility. I am using it for the last 4 years.

I would keep this option in crap box ! if we avail this option, we are just delaying our payments instead of parking our funds i will repay and reduce the future interests and Tenure .

Understand the calculation don't fool your self ..

Anonymous wrote:I would keep this option in crap box ! if we avail this option, we are just delaying our payments instead of parking our funds i will repay and reduce the future interests and Tenure .

Understand the calculation don't fool your self ..

If you repay your loan instead of parking, then you are loosing on liquidity because that money you have paid towards repayment would not come back to you. Whereas, if it is MAXGAIN, then you are repayiong your loan faster and at the same time have the option of taking out parked funds.

Sunil

Why should i borrow extra money and pay huge interest to the bank instead of it i reduce my loan amount and save more money have a look at this example..
Example

Loan Amt - RS 50 Lac
Actual EMI - Rs 50762
Actual Term years - 20 Years
Prepayment amt paid - 16,75,146 ( extra 3 EMI each Year)
Reduced Term - 11 years 10 months
Actual Interest - 71,82,150
Reduced Interest - 38,75,542
Interest Saved - 33,06,608
Effective saving - 16,31,462
Percentage of Int Saved - 46%

Even you can pay 1 or 2 emi each year extra and save interest instead of keeping money dead... enjoy saving !!!!

Anand

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