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SBI MaxGain Why should you choose this
home saver loan?
by ONNQML A ADGA on IAMTAQX 3, 2014 in AQSCKERwith 138 comments
L nr s gnl d kn` manqqnv dqr e` bd sgd chkdl l ` nev gdsgdq sn t r d sgdhq
l nmsgkx r ` uhmf r sn oqdo` x sgdhq kn` mnq r dshs ` r hcd enq dl dqf dmbhdr . m
l nr s b` r dr , sgd dwsq` l nmdx i t r s r hsr hmsgdhq r ` uhmf r ` bbnt msr d` qmhmf
adknv o` q (` mc s` w` akd) hmsdqdr s. A gnl d r ` udq kn` mkdsr xnt g` ud sgd
b` j d ` mc d` s hs snn. Xnt v hkkad ` akd sn o` qj sghr ` l nt ms hmsgd gnl d kn` m
` bbnt ms enq ` mx mt l adq nec` xr ` mc ot kkhs nt s ` mxshl d enq xnt q t qf dms
mddcr nq qdf t k` q dwodmr dr v gdmsgdx adbnl d ct d (d.f ., o` xhmf j hcr
r bgnnkeddr dudqx pt ` qsdq). Sgd l nmdx sgt r j dos hmsgd gnl d kn` m
` bbnt ms qdct bdr sgd sns` khmsdqdr s nt sf n nmxnt q gnl d kn` m` mc gdkor
xnt bknr d xnt q kn` me` r sdq.
L ` wG` hmhr ` onot k` q gnl d r ` udq kn` moqnct bs eqnl RB. Rhl hk` q gnl d r ` udq kn` mr ,
` kadhs v hsg cheedqdms hmsdqdr s q` sdr , ` qd ` kr n ` u` hk` akd eqnl nsgdq a` mj r hmbkt chmf
Chsha` mj (Hnl d Cqdchs), Rs` mc` qc Cg` qsdqdc B` mj (Hnl dR` udq), HRBC (Rl ` qs Hnl d)
` mc DBB` mj (Hnl d Kn` mmsdqdr s R` udq).
V d v hkkenbt r dwbkt r hudkx nmRBL ` wG` hmhmsghr ` qshbkd. Nsgdq gnl d r ` udq kn` mr khr sdc
` anud ` qd pt hsd r hl hk` q ` mc l ` x cheedq hml hmnq cds` hkr . Bdenqd v d cdkud cddodq hmsn
RBL ` wG` hm, kdsr t mcdqr s` mc v g` s hr ` mnudqcq` es (ND) ` bbnt ms.
What is overdraft (OD)?
Amnudqcq` es e` bhkhsx hr ` bqdchs khmd oqnuhcdc sn hmchuhct ` kr ` f ` hmr s sgdhq ` r r dsr . Xnt
b` msghmj nehs ` r adhmf r hl hk` q sn ` bqdchs b` qc v hsg ` khl hs at s v hsgnt s sgd hmsdqdr s-
eqdd (f q` bd) odqhnc. h.d., sgd hmsdqdr s bknbj r s` qsr shbj hmf ` r r nnm` r sgd ` l nt ms hr
v hsgcq` v mhmr sd` c nev ` hshmf t mshksgd o` xl dms ct d c` sd. Sgd hmsdqdr s q` sd nm
nudqcq` es ` bbnt ms hr sxohb` kkx knv dq sg` mbqdchs b` qc. Xnt b` mv hsgcq` v l nmdx t osn
sgd r ` mbshnmdc khl hs ` mc v hkkg` ud sn qdo` x sgd nt sr s` mchmf a` k` mbd ` knmf v hsg
hmsdqdr s nmkx enq sgd ct q` shnmsg` s xnt t shkhyd sgd l nmdx eqnl sgd ` bbnt ms.
How is SBI MaxGain different from regular home loans?
RBL ` wG` hmhr ` gnl d kn` msg` s hr r ` mbshnmdc ` r ` mND v hsg ` khl hs sg` s hr dpt ` ksn
sgd ` ooqnudc kn` m` l nt ms. Xnt q gnl d ` bsr ` r sgd t mcdqkxhmf r dbt qhsx enq sgd ND
` bbnt ms. Sghr oqnct bs g` r sgd r ` l d hmsdqdr s q` sd ` r sgd nsgdq gnl d kn` mr eqnl RB
t osn Qr . 1 bqnqd (` r nesghr v qhshmf ). A oqdl ht l ne0.25% hr ` ookhdc enq gnl d kn` mr
` anud Qr . 1 bqnqd. Sgdqd hr mn dwsq` bg` qf d enq t r d neND e` bhkhsx. Sgd bt qqdms ` bbnt ms
(ND) bnl dr v hsg bgdpt d annj ` mc mds a` mj hmf e` bhkhsx.
Hnl d r ` udq kn` mr ` qd r t hsdc enq sgnr d hmchuhct ` kr :
v gnr d d` qmhmf r ` qdms bnmr s` ms r dke-dl oknxdc nq at r hmdr r l dm. As ` qdbdms qd` k
dr s` sd dwon, RBsnkc l d sg` s L ` wG` hmhr ms ` u` hk` akd enq sgd r dke-dl oknxdc ` mc
at r hmdr r l dm.
v gn g` ud ` odqhnchb (pt ` qsdqkx, r dl h-` mmt ` knq ` mmt ` k) anmt r nq u` qh` akd o` x
bnl onmdms sg` s b` mad o` qj dc hmsgd ND ` bbnt ms.
EMI Calculator
C` kbt k` sd EL enq Hnl d Kn` m/
Hnt r hmf Kn` m, C` q Kn` m& Odqr nm` k
Kn` mhmmch`
To search type and hit enter
Qdbdms Aqshbkdr
EL ` s OnRsgqnt f g bqdchs b` qcr
f ` hmhmf l nl dmst l
Aunhc sgdr d bnl l nmbqdchs b` qc
l hr s` j dr
Oqd-EL ur Ft kkEL Tmcdqr s` mchmf
o` xl dms r bgdl dr enq t mcdq-
bnmr sqt bshnmoqnodqshdr
RBL ` wG` hm V gx r gnt kc xnt bgnnr d
sghr gnl d r ` udq kn` m?
V gx chc QBa` m0% EL r bgdl dr ?
B` mj r l t r s khmj chr at qr ` knegnt r hmf
kn` mr sn bnmr sqt bshnmr s` f dr : QB
EL CAKCTKASNQ CAKCTKASNQRAMD MDCASNQR EL CAKCTKASNQ V DGES AQSCKER MEV RBSER FAPR CNMSACS TR
v gn g` ud r ` uhmf r ` esdq o` xhmf EL ` mc nsgdq l nmsgkx dwodmr dr .
MQr ` mc oqnedr r hnm` kr v hsg ghf gdq hmbnl d.
How does monthly payment work?
A sxohb` kL ` wG` hm` bbnt ms r s` sdl dms knnj r khj d sghr :
Ddr bqhoshnm RBH KL AWGAM ATG11
M` l d L q. FQRSMAL E KARSMAL E
Bnnj B` k` mbd -14,62,750.00
Au` hk` akd B` k` mbd 1,00,366.00
Khl hs 15,63,116.00
T mbkd` qdc a` k` mbd 0.00
Dq` v hmf Onv dq 15,63,116.00
Ct qqdmbx MQ
Q` sd nemsdqdr s (% o.` .) 10.3%
KhdmAl nt ms 0.00
Hdqd ` qd ` edv onhmsr sn gdko t mcdqr s` mc sgd gnv l nmsgkx o` xl dms v nqj r :
1. Tonmehm` kchr at qr ` k, xnt q Khl hs ` mc Dq` v hmf Onv dq v hkkdpt ` ksgd r ` mbshnmdc
kn` m` l nt ms. Sgdr d ` l nt msr v hkkqdct bd v hsg d` bg EL o` xl dms.
2. Dq` v hmf Onv dq = Nt sr s` mchmf oqhmbho` kkn` m` l nt ms.
3. Au` hk` akd B` k` mbd = Amx r t qokt r ` l nt ms o` qj dc hmsghr ` bbnt ms + ` bbqt dc
hmsdqdr s r ` uhmf r . L nqd nmsghr adknv (Onhms 5 sgqt 8).
4. Bnnj B` k` mbd = Dq` v hmf Onv dq Au` hk` akd B` k` mbd. Sghr hr r gnv m` r ` mdf ` shud
(l hmt r ) ` l nt ms.
5. Xnt q l nmsgkx EL v hkkmns u` qx cdr ohsd r t qokt r ` l nt ms hmsgd ND ` bbnt ms.
6. Oqhmbho` konqshnmnesgd EL hr ` ookhdc nmsgd c` sd neEL o` xl dms ` mc f ndr sn
qdct bd sgd Dq` v hmf Onv dq ` mc sgd Khl hs. Sgd oqhmbho` konqshnmnesgd EL hr
b` kbt k` sdc ` r odq sgd nqhf hm` k` l nqshy` shnmr bgdct kd. Rt qokt r ` l nt ms cdonr hsdc
hmsgd ND ` bbnt ms ` mc ` bbqt dc hmsdqdr s r ` uhmf r cn mns ` ksdq sgd oqhmbho` konqshnm
nesgd EL .
7. msdqdr s onqshnmhr b` kbt k` sdc ` f ` hmr s sgd Bnnj B` k` mbd nm` c` hkx a` r hr ` mc hr
cdahsdc ` s sgd dmc nesgd l nmsg.
8. Akkr t qokt r l nmdx o` qj dc hmsgd gnl d kn` m` bbnt ms f ndr snv ` qcr Au` hk` akd
B` k` mbd. Eudmhesgd r t qokt r ` l nt ms hr j dos nmkx enq ` edv c` xr ct qhmf sgd l nmsg,
hs gdkor qdct bd sgd hmsdqdr s bnl onmdms nesgd EL enq sg` s l nmsg. Rhmbd sgd
hmsdqdr s hr b` kbt k` sdc nmsgd Bnnj B` k` mbd hmr sd` c nent sr s` mchmf oqhmbho` k, ` mx
dwbdr r ` l nt ms (h.d., EL Oqhmbho` k msdqdr s) hr ` ccdc sn sgd Au` hk` akd B` k` mbd.
Hdqdr ` bnl o` qhr nmne` l nqshy` shnmr bgdct kd (ehqr s 24 l nmsgr nmkx) neqdf t k` q gnl d
kn` m` mc RBL ` wG` hm:
Amortization schedule (first 24 months only) of regular home loan vs SBI MaxGain
(Click to enlarge)
V d v hkk` r r t l d sg` s ansg gnl d kn` mr g` ud sgd r ` l d oqhmbho` k` l nt ms, hmsdqdr s q` sd
` mc sdmt qd. Ar xnt b` mr dd eqnl sgd r bgdct kd, sgd anqqnv dq cndr sgd enkknv hmf
cdonr hsr hmsn (` mc v hsgcq` v ` kr eqnl ) ghr RBL ` wG` hm` bbnt ms ct qhmf sgd ehqr s 24
l nmsgr :
1. Ddonr hsr ` r t qokt r ` l nt ms ne2,00,000 ` s sgd adf hmmhmf nel nmsg-6
2. V hsgcq` v r 1,00,000 hml nmsg-12 enq ghr j hcr r bgnnkeddr
3. V hsgcq` v r 1,00,000 hml nmsg-17 enq e` l hkx u` b` shnm
4. Gdsr ` r ` k` qx ghj d ` mc r s` qsr cdonr hshmf 20,000 d` bg l nmsg eqnl l nmsg-18
5. V hsgcq` v r 1,20,000 hml nmsg-24 sn o` x ghr j hcr r bgnnkeddr
Aksgnt f g sgd anqqnv dq g` r v hsgcq` v m` kksgd r t qokt r l nmdx sg` s gd cdonr hsdc ` s sgd
dmc nel nmsg-24, gd r shkkg` r hmsdqdr s r ` uhmf r (Au` hk` akd B` k` mbd) ne19,529.72. Xnt
b` mmns` bghdud r t bg qdr t ksr t r hmf sgd qdf t k` q gnl d kn` m.
RBL ` wG` hmEwbdk D` hkx msdqdr s C` kbt k` shnm
Qdf t k` q Hnl d Kn` m RBL ` wG` hmHnl d Kn` m
1 EL hmbkt cdr sv n bnl onmdmsr :
Oqhmbho` k` mc msdqdr s. Sgd oqhmbho` k
bnl onmdms hmbqd` r dr ` mc sgd
hmsdqdr s bnl onmdms cdbqd` r dr v hsg
d` bg r t bbdr r hud o` xl dms. EL
qdl ` hmr bnmr s` ms sgqnt f gnt s sgd
kn` msdmt qd.
R` l d ` r qdf t k` q gnl d kn` m.
2 Oqhmbho` k` mc msdqdr s bnl onmdmsr
` qd b` kbt k` sdc ` r odq sgd nqhf hm` k
` l nqshy` shnms` akd.
Oqhmbho` kbnl onmdms hr b` kbt k` sdc ` r
odq sgd nqhf hm` k` l nqshy` shnms` akd. Sgd
Dq` v hmf Onv dq hr qdct bdc ax sgd
oqhmbho` k` l nt ms nesgd EL d` bg
l nmsg.
msdqdr s bnl onmdms, gnv dudq, u` qhdr
cdodmchmf nmBnnj B` k` mbd.
3 msdqdr s hr b` kbt k` sdc nmsgd
nt sr s` mchmf oqhmbho` kkn` m` l nt ms
(` r hmsgd nqhf hm` k` l nqshy` shnm
s` akd).
msdqdr s hr b` kbt k` sdc nmsgd Bnnj
B` k` mbd nm` c` hkx a` r hr ` mc hr cdahsdc
` s sgd dmc nesgd l nmsg.
Ewbdr r ` l nt ms eqnl sgd l nmsgkx
o` xl dms (h.d., EL Oqhmbho` k msdqdr s),
he` mx, hr ` ookhdc snv ` qcr sgd Au` hk` akd
B` k` mbd.
4 Oqhmbho` k` mc msdqdr s bnl onmdmsr
` qd ` ookhdc nmsgd EL o` xl dms c` sd
hsr dke.
Oqhmbho` khr ` ookhdc nmsgd EL o` xl dms
c` sd hsr dkev gdqd` r msdqdr s hr cdahsdc ` s
sgd dmc nesgd l nmsg. Tmshksgdm, sgd
dmshqd hmsdqdr s onqshnmhr r gnv m` r o` qs
nesgd Au` hk` akd B` k` mbd.
5 C` mmns ad t r dc khj d RB nq bt qqdms
` bbnt ms enq nt sf nhmf sq` mr ` bshnmr
` mc ahkko` xl dmsr .
Xnt b` mt r d sgd gnl d kn` m` bbnt ms sn
cn et mcr sq` mr edq (MEFS, QSGR dsb.) ` mc
ahkko` xl dmsr t r hmf bgdpt d annj ` mc
mds a` mj hmf e` bhkhsx. Au` hk` akd B` k` mbd hr
sgd khl hs enq r t bg sq` mr ` bshnmr .
6 Hnl d kn` mhr bknr dc v gdmsgd
nt sr s` mchmf oqhmbho` k` l nt ms hr
ydqn.
Xnt b` m` ooqn` bg sgd a` mj sn bknr d
xnt q gnl d kn` mv gdmsgd Bnnj B` k` mbd
qd` bgdr ydqn.
Pre-payment vs Parking Surplus Funds
Oqd-O` xl dms (hmqdf t k` q gnl d kn` m
nq L ` wG` hm)
O` qj hmf Rt qokt r Ft mcr hmRBL ` wG` hm
1 Qdct bdr nt sr s` mchmf Oqhmbho` k
B` k` mbd.
mbqd` r dr xnt q Au` hk` akd B` k` mbd ` mc
qdct bdr xnt q Bnnj B` k` mbd.
2 Xnt q ` l nqshr ` shnmr bgdct kd
bg` mf dr . Xnt b` mnos sn qdct bd
dhsgdq xnt q kn` msdmt qd nq kn` mEL .
1) exnt nosdc enq kdr r dq kn` msdmt qd,
sgdml nqd nexnt q et st qd EL f ndr
snv ` qcr Oqhmbho` k.
2) exnt nosdc enq kdr r dq EL , xnt q
et st qd EL (` mc bnmr dpt dmskx xnt q
oqhmbho` k` mc hmsdqdr s onqshnmr ) v hkk
qdct bd.
Xnt q ` l nqshr ` shnmr bgdct kd qdl ` hmr
t mbg` mf dc. Hnv dudq, l nqd nexnt q
hmsdqdr s onqshnmf ndr snv ` qcr Au` hk` akd
B` k` mbd.
3 Sgd l nmdx hr f nmd enqdudq. Xnt
b` mmns t mcn sghr ` bshnm.
Xnt b` mv hsgcq` v sgd r t qokt r ` l nt ms
` s ` mx shl d. Xnt q ` l nqshr ` shnm
r bgdct kd qdl ` hmr t mbg` mf dc. Mnv ,
kdr r nexnt q hmsdqdr s onqshnmf ndr
snv ` qcr Au` hk` akd B` k` mbd.
4 S` wcdct bshakd t mcdq Rdbshnm80C. msdqdr s r ` uhmf r ` qd mnss` wcdct bshakd.
Advantanges of SBI MaxGain
Khpt hchsx
7 38
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25 MNU 2011 SBI AND ICICI BANK END PRE-PAYMENT PENALTY ON HOMELOANS
16 REO2012 UNDERSTANDINGTAX BENEFITSONHOMELOAN
15 L AQ2013 BUDGET 2013: TAX EXEMPTION ON HOMELOAN INTEREST AMOUNT RAISED
16 REO2011 RBI HIKESINTEREST RATESFOR12THTIMEIN 18 MONTHS; LOANEMISTOGOUP
exnt l ` j d o` qsh` koqdo` xl dms nmxnt q gnl d kn` m, sg` s l nmdx f ndr sn qdct bd sgd
nt sr s` mchmf oqhmbho` k` mc hr mns ` u` hk` akd sn xnt ` mxl nqd. Hnv dudq, ` mx r t qokt r
et mcr o` qj dc hmL ` wG` hmgnl d kn` m` bbnt ms b` mad v hsgcq` v m` mxshl d.
Hnv dudq, r t qokt r et mc cdonr hsdc adenqd et kkchr at qr ` knq enq t mcdq bnmr sqt bshnm
oqnodqsx b` mmns ad v hsgcq` v mt mshkbnl okdsd chr at qr ` k. Xnt q hmsdqdr s nt sf n v hkk
qdct bd adb` t r d nesghr cdonr hs ` mc hmsdqdr s r ` udc v hkkf ds` ccdc sn ` u` hk` akd a` k` mbd,
at s xnt b` mmns v hsgcq` v shkkxnt f ds onr r dr r hnm.
msdqdr s R` uhmf r
er t qokt r et mcr ` qd o` qj dc hmsgd ND ` bbnt ms, hs r ` udr hmsdqdr s nt sf n nmsgd gnl d
kn` m. Hdkor xnt bknr d sgd kn` me` r sdq.
Bdssdq xhdkc sg` mnsgdq cdonr hs / hmudr sl dms oqnct bsr
msdqdr s r ` udc hr hmsdqdr s d` qmdc . Ewodqsr qdbnl l dmc sghr oqnct bs nudq nsgdq
hmudr sl dms oqnct bsr hmbkt chmf s` weqdd anmcr ` mc FD.
mr sd` c nenodmhmf ` Fhwdc Ddonr hs (FD) enq 1-5 xd` qr , hexnt o` qj sgd r ` l d et mcr hmsgd
ND ` bbnt ms, xnt v hkkf ds 1 sn 3% ghf gdq r ` uhmf r . Mnsd sg` s xnt v hkkad qd` khyhmf sghr
q` sd dudmhexnt o` qj xnt q et mcr sdl onq` qhkx t mkhj d FD v gdqd xnt v hkko` x ` odm` ksx
enq oqdl ` st qd v hsgcq` v ` k. Nmsno nesg` s sgd r ` uhmf r v hsg L ` wG` hm` qd s` weqdd.
Tax deduction
Amx ` l nt ms sg` s xnt cdonr hs sn L ` wf ` hmv hkkmns ad sqd` sdc ` r oqd-o` xl dmst mcdq
Rdbshnm80C. Hdmbd, sg` s ` l nt ms cndr mns pt ` khex enq Rdbshnm80C qda` sd. Ewodqsr
` cuhbd sg` s xnt r gnt kc nmkx o` qj ` l nt ms nudq ` mc ` anud sgd s` wcdct bshakd hmsdqdr s
onqshnm. msdqdr s r ` udc (` r r gnv mt mcdq Au` hk` akd B` k` mbd) hr mns s` wcdct bshakd t mcdq
Rdbshnm24.
exnt khj dc sghr onr s, okd` r d bnmr hcdq r g` qhmf sghr
onr s v hsg xnt q eqhdmcr & e` l hkx t r hmf sgd r nbh` k
r g` qhmf at ssnmr nq kd` ud ` bnl l dms adknv .
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Featured Comment

ashish malviya
I have checked with latest daily interest calculator excel sheet and fill my
home loan detail according,.. they are as accurate, as should be, nice work
done, cant expect more.. also thanking for full explanation about product.
..just for fun
dont think even SBI emp will know, this much
138 Comments

Poornima@EMICalculator Mod
We have made the daily interest calculator excel (with all its limitations) available
to everyone now. Please obtain your amortization schedule from SBI and then
enter the 'Principal Due' values in the 'Actual Principal' column. 'Estimated
Principal' column will usually differ from SBI amortization schedule. If you
discover any bugs, let us know.

Priya
kindly send me the excel sheet

Poornima@EMICalculator Mod
Please see the link above in the article itself.

Nikhil
I took 29lac loan from Max gain (1 year back) and my EMI is coming as ~29000
for 20years with Interest 10.25. Recently I put 7lac as prepayment. I am
confused regarding how much Tenure will be reduced?
I calculated it as 10years as to match my EMI I reduced the tenure, and so on
(jagoinvester website, but I am not sure).
Please help.

Poornima@EMICalculator Mod
Was it pre-payment OR parking surplus fund in your account?
If its pre-payment, then what's the month you started paying EMI and the
month of pre-payment?

Nikhil
Thanks for reply..
I am not sure about parking surplus fund..I just online transferred
to OD account...My EMI started from Aug-13 and I transferred
7lac in Jan-14...After money transfer, my Book balance is
showing approx -22lac and Available balance as approx 7 lac
Poornima@EMICalculator

Mod
Forgot to reply to your original question. Assuming you do
not plan to withdraw your 7 lacs ever, your Book Balance

not plan to withdraw your 7 lacs ever, your Book Balance
will become zero around June-2024. You can then ask the
bank to close your home loan account.

nikhil
Thank you Poornima for your answers..It helped a lot..

nikhil
One more question Poornima...
Which one is benificial, to Prepay or to Park surplus
money(assuming, I do not want to use that money in
future), in terms of reducing tenure of loan...
In my case, can I further reduce Loan tenure if I prepay the
loan.
Can you add 1-2 examples of Prepayment also in above
screenshot of your excel sheet....
Thanks for your help...

Poornima@EMICalculator

Mod
This is exactly what I have explained in this article. This
isn't pre-payment. You are parking your money in the
account.
I have added another table explaining the difference
between these two actions within the article now.

Saket Agrawal

Hi Poornima,
Thanks for the nice article.
I don't know if I got it correctly but I didn't find example for
pre-payment in excel sheet. Can you please add pre-
payment example also in your excel sheet so I can
understand its effect on total outgo on loan vs parking
surplus amount in Max gain account.
Thanks in advance.

Himanshu Khare
Hi Poornima,
Thanks for the detailed information , As a home loan seeker it is going to help
me a lot. I had one question .
I have booked an under construction property for which I take the SBI Maxgain
Loan , I will be getting the possession in next 30 months. With this Loan product
should I go for a Pre Emi or Full EMI .
Please suggest.
Thanks & Regards
Himanshu

Poornima@EMICalculator Mod
Please read this article for a detailed answer: http://emicalculator.net/pre-
e...

ashish malviya
I have checked with latest daily interest calculator excel sheet and fill my
home loan detail according,.. they are as accurate, as should be, nice work
done, cant expect more.. also thanking for full explanation about product.
..just for fun
dont think even SBI emp will know, this much

Poornima@EMICalculator Mod
Thanks for the compliments.

Bhuvana
Is the interest earned (and subsequently adjusted against the interest payable)
taxable?

Poornima@EMICalculator Mod
There's a subtle difference. It isn't interest earned, its interest saved.
Hence its not taxable.

Ankit
Hi,
I took a 30 lac loan (Maxgain) for 25 years with interest of 10.3%. My EMI of
~28000 started from Apr 2014. I am planning to deposit 4 lac to my Maxgain A/c
in July 2014 and after that i'll deposit ~10k above my EMI. With this rate when is
the earliest by which i can close my loan? Is there a
schedule/calculator/spreadsheet where i can regularly check the details after
depositing extra amount ?
Please help.
Thanks !

Poornima@EMICalculator Mod
Please use the excel sheet attached to this article. Before you use the
excel, you should contact your SBI branch to get the amortization
schedule for your loan. Follow instructions in the excel to determine the
impact of your surplus deposits.

Ankit
Thanks a lot Poornima ! The excel sheet is of much help.

Anant
For the interests Paid, can this be claimed in the tax deduction section 24B (1.5
lakhs). ? I see few mention that section 24 B cannot be claimed for interests
saved by OD. But would like to confirm for the interests paid.

Poornima@EMICalculator Mod
Interest paid is tax deductible.

Nitin
I have applied for SBI Max gain home loan but they sectioned the normal home
loan instead of the MAX Gain. SBI persona told me that, as per RBI guidelines
they can not section the MAX gain home loan for 3rd property.

Poornima@EMICalculator Mod
Thanks for sharing this information.
Ragav
Hi Poornima,
Thanks a lot for this detailed article. This answers a lot of queries.
I have a quick question. I have got Max gain account and the property is under
construction. I recently sold my property in other city and would like to know if its
a good idea to park that capital gain to the loan account. I guess this will be
considered as parking surplus since I cannot repay until the final amount is
disbursed from SBI.
Also, once the complete disbursement is done, I assume the money that I

Also, once the complete disbursement is done, I assume the money that I
parked will show up as "Available Balance" which I can withdraw. So how can I
"repay" the loan instead of "parking surplus"? Should I contact the branch?
Thanks.

Poornima@EMICalculator Mod
Yes, you should. You should ask the branch to use the Available Balance
to pre-pay the principal amount.

Patil
It is wonderful article written by Poornima. I read complete article and based on
my understanding I have three questions with respect to SBI Max Gain:
1. Say I got loan sanctioned for 30 Lakhs, 20 years duration for an under-
construction property. Say on May 1st 2014 I ask Bank to disburse 6 lakhs to
builder as first installment and on 2nd May 2014 I deposit 3 lakhs in this account,
and next disbursement is on 1st June 2014. Will interest be computed only for 3
lakhs or 6 lakhs ?
2. What will be the rate of interest for deposited amount ? Will it be same as loan
interest rate ?
3. Can I link same over draft account for EMI payment through ECS ?

Poornima@EMICalculator Mod
Here are the answers:
1) Interest is calculated on a daily basis. After your deposit, your interest
will be computed only for 3 lakhs. Remember that you cannot withdraw
surplus amount until the final disbursement.
2) Same as loan interest rate.
3) Yes, you can pay your EMI through ECS.

TAMUStudent TAMU
I have a big problem and need you assistance please in sorting it out:
My Maxgain loan of 30L at 10.3% started in November 2013 and there have been
4 EMIs paid until now. Emi is 27899 per month.
Yesterday I added a surplus of 75000 to my OD account - however, I was
surprised to see that My available balance just showed 51582. I realized that the
remaining 23418 got deducted from drawing power - essentially meaning that
23418 got prepaid automatically?
Is that an error which I should check with the branch or is this some normal
procedure? Please explain.

nn1
The difference of Rs 23,418 will be equivalent to the interest for the
month. This is debited to your max gain account on the last day of the
month as a separate entry
On the EMI date the entire amount of EMI is credited to your account.
Hence the available limit will be restored to Rs 75,000 (the amount
deposited) on the EMI date.

Poornima@EMICalculator Mod
First and foremost, request your branch for your amortization schedule. It
should make things clear for you. You can then use our excel to find out
what's happening with your surplus deposit.
Ashish There
Poornima,
Thanks a lot for publishing all the important details over web.
I have SBI Maxgain OD loan account, I was granted loan of apprx 26.5 Lacs and

i began paying EMIs (and not pre-emis) of apprx. Rs. 25000 @ ~10.5% while the
property was under construction. Out these 26.5 lacs, I borrowed appx. 21 lacs
and took the possession recently (by paying outstanding amount on my own).
It seems that my emi of Rs. 25000 is being calculated against my borrowing limit
of 26.5 lacs
My question is after requesting bank to reduce borrowing limit and withdrawing
power to 21 lacs, will my EMI be re-generated based on those 21 lacs or will it
remain same ?
Your suggestion is highly appreciated.
Regards -
Ashish

Poornima@EMICalculator Mod
I guess that would depend on what you request: reduction in EMI or
reduction in tenure.

ROHIT
Hi Poornima,
Thanks for this wonderful information.
Can you please share excel of SBI Maxgain of daily basis calculations instead of
monthly basis if possible ?
Regards,
Rohit

Poornima@EMICalculator Mod
I am currently sharing it with a few readers who have availed SBI
MaxGain and am awaiting their feedback. If you are interested, please
send an email to poornima@emicalculator.net.
If you have taken SBI MaxGain, request you to share your loan
information, complete transaction data, account summary and original
loan amortization schedule provided by SBI (of course, hide all sensitive
information). This will help me detect any errors in our excel and then
make the defect-free excel available to the public.

Guest
Hi, Thanks for detailed article. I need little help and guidance in regards to my
home loan. I have taken one home loan (regular home loan) for 11L in 2008 with
current interest rate as 10.5. I have now taken another home loan for amount
41L with max-gain scheme with interest rate 10.15. Loan will be started from
March 2014 and we have opted for full EMI starting from 1st April 2014. Full
disbursal of amount will be completed for this loan by June 2015. My question is
if I have some additional saving, shall I use it in prepayment of existing old loan
or shall I use it and put in max-gain scheme? Which option will be more
benefitial?

Poornima@EMICalculator Mod
Here are the rules of thumb:
a) It is always beneficial to pay off the higher interest debt first. Only then
you should think of investing / saving in lower interest products.
b) You pay more interest during initial stages of the loan. Hence pre-
payment or surplus deposit during those initial stages will help save more
in interest outgo.
Gopi
Hi Poornima, after reading your article, now I am thinking of migrating my loan to
this scheme. I have a question for you. In this scheme, is there any restriction on
transfering some portion of available balance towards the prepayment of the
principal..? Because, Parking of funds in Available balance will reduce the future
interest and enable me to draw that in future. However, it will not give any

interest and enable me to draw that in future. However, it will not give any
income tax benefits under section 80C. If i am transfering some portion of the
available balance towards the principal repayment, i can get interest reduction,
80 C benefit but i need to compromise the option of drawing the amount in
future. Thats okay for me.

Poornima@EMICalculator Mod
Prepayment is also possible with MaxGain. Please check with SBI
regarding the process to be followed.

Gopi
Thank you so much

Rajeev Ojha
I feel there is a bug in the spreadsheet. I see that total of principal and interest
component goes on decreasing if I make a regular contribution of some amount.
Overall a very good sheet and it did motivate me in trying to shift my loan to SBI.
Very nice and useful article. Thank you very much.

Poornima@EMICalculator Mod
Thanks for the nice words. Glad this article helped you.
I am actually working on a new spreadsheet (with daily interest
calculation) based on information that is being sent by the readers.
There's a lot of permutations and combinations (Pre-EMI vs Full EMI,
Partial disbursement, Surplus & No-Surplus, Moratorium period etc.) that
is difficult to calculate without seeing real data.

Rajeev Ojha
Hello Poornima
I think I have found the bug now. The sheet is using the principal
being paid on the non Max gain section for the particular month as
the principal for the Max gain section too. refer cell(g24)
=IF(M23<0,C24,0).
This is not correct. The value for cell(g24) should be equal to EMI
paid - interest component (example : Cell(g24) =C$14-H24).
I have replaced the formula =IF(M24<0,C25,0) with C$14-H24 for
the cell g(24).
Here the assumption is - the EMI paid will remain constant and
interest will be charged on the outstanding amount. So what ever
extra is being paid will go towards Principal.
Please do not take this in any negative way.
And thanks again for this wonderful IDEA :-)
Regards

Poornima@EMICalculator

Mod
Rajeev, That is not a bug...that's how MaxGain works.
Request you to re-read the article. The Principal amount
is deducted as per original schedule (like a normal home
loan) and is not impacted due to availability of surplus
funds.
Principal is adjusted as per original schedule on the EMI
payment date, Interest is calculated on a daily basis as
per Book Balance (i.e., Drawing Power - Available
Balance) and charged at the end of the month, and the
difference gets added to the Available Balance.
Rajeev Ojha

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Load more comments
House value depreciation what to
expect if this happens

If individuals could prepay

the depreciated value to keep the
max borrowed money from loan
NHB bans prepayment penalty on
home loans by HFCs

I have taken
housing loan from LICHF and want to
prepay the same. Although
3 factors that determine your home
loan tenure

Sir, If I take a loan of

Rs. 25 lac @10.5 % and after 6
months, suppose if I am in a
Loan Affordability Calculator

Good one... This really

helps.... Analysis is mainly on the
important factors to be

Now it is very clear to me. Thank you so much for taking
time to explain this.
I will try finding why the sum of Interest + Principal paid is
still not adding up to the EMI paid under the SBI section...
Regards

Poornima@EMICalculator

Mod
Rajeev, try adding the difference in Available Balance to
the Interest & Principal amount under the SBI MaxGain
section. i.e., EMI = Interest + Principal + Delta in Available
Balance.

Rajeev Ojha

Thank you again. Now I am in the process of transferring
the loan.
Regards

Hariharan
Can I also prepay against my principal in a max gain account, over and above
the surplus fund and permanently reduce the tenure. Do we have this option in
max gain

Poornima@EMICalculator Mod
You can make prepayments against the principal amount. You will have
check with your bank regarding the process for the same.

Himanshu Nayak
Hi Poornima,
In the Excel you showed that till month 6 Prinicipal and Interest is same. After
keeping surplus of Rs 2L, the interest (as in interest column) is shown less than
in normal loan. I assume that you have calculated interest by deducting the
interest earned ( as seen in available balance). This means that for the
customer total EMI (Rs 29149.69 in this case) remains same and saving on
interest is indirect because available balance increased. please let me know this
important point as I am planning shifting to Max Gain from HDFC.
Regards,
Himanshu
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