SBI Maxgain Home Loan account- tips to save more money

SBI maxgain home loan account is an overdraft facility enabled home loan account from State bank of India (SBI).

Maxgain is a very popular home loan saver product and a very successful indeed for SBI. This account has overdraft facility, which actually makes this product very popular among home loan seekers.

sbi maxgain home loan account review

What is over draft facility?

In simple terms, this is a kind of home loan account in which if you deposit some interim amount it will consider that amount as a home loan pre-payment. And accordingly the EMI will be re-calculated.

But if you need some amount in future, you can take that amount from this account and your loan due will increase. Accordingly EMI will be increase.

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So, one has the option to deposit money and again withdraw money whenever liquidity require. This feature makes SBI maxgain home loan account very popular among all loan products.

In this article, I will share few case studies and explain how one can save more money with SBI maxgain home loan account.

Save more with SBI Maxgain Home Loan Account

Case 1: Manoj is working as a software professional, and recently got a good promotion. So he decided to put that extra amount aside and utilize that by repaying the home loan he took 2 years back. But when he approached the bank, the said “Sir, you can only repay 4 times a year. As you have already consumed your limit you can’t repay further”.

How SBI Maxgain home loan account can save your life here?

Majority of banks provide home loan with a max 4 times / year pre-payment or part-payment options. If you are in a profession or business where you can expect some regular surplus in 1-2 months and you want to utilize that money by repaying home loan, you can’t do that. But with SBI Maxgain home loan account overdraft facility, one can simply transfer the surplus money to that account similar to balance transfer.

Tips: Try to close your entire savings account and keep only one SBI Maxgain home loan for all your cash deposits. This will help you to manage you cash as well as reduce your home loan interest burden.

Case 2: Manoj want to buy a car after 2 years. And for that he is saving money to by creating a recurring deposit. After 2 year he will utilize this money as down payment to take a car loan. He is also planning to take a personal loan for his sister’s marriage by next 1 year.

Don’t worry Manoj, SBI Maxgain home loan account is the perfect alternative of a personal loan or a car loan.

If Manoj could have SBI maxgain home loan, he could deposit all his cash or savings amount in that account itself. After 1 year whenever he need cash flow for his sister’s marriage he could easily withdraw that money. In fact he can utilize the SBI maxgain home loan ATM card for the same. So, he could easily avoid the high interest rates of a car loan or personal loan by withdrawing money from the Maxgain account.

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Case 3: If Mr. Manoj would have taken SBI maxgain home loan account, then he could save more income tax for above case. How can Mr. Manoj save more income tax with Maxgain account? Let’s find out that also.

Let’s say right now Mr. Manoj is not able to consume his entire home loan interest income tax exemption limit of 2 lakh per year. E.g. he is claiming only Rs 1 lakh of interest as he has re-paid enough balance toward home loan principle. For your information one can claim max 2 lakh under section for this.

But, if 2nd case happens in Mr. Manoj’s life, then his home loan EMI will increase. That means he has to pay more interest from next month onward.

So, here is the scope for him to increase the home loan interest rate exemption amount and save more money on income tax.

Is SBI maxgain home loan account so beneficial?

Yes, SBI maxgain home loan account is an awesome product. But it has few disadvantages also which may not be able to overtake the benefits.

How is your experience so far with SBI maxgain home loan account?

Did you try to transfer your existing home loan to SBI? How is the experience?

I have approached SBI while applying for home loan for the first time. I didn’t find them as per my expectation. The procedure was not that user friendly according to me. So, I have opted out another bank and got the loan in 1 week time.

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19 Comments

  1. I had a question. I am a holder of SBI max gain account. I keep seeing a fluctuating balance in my OD account. I had recently deposited around 76000rs in the OD account in mid of October. But now the balance is only 49,998. It says interested debited. But it should not be debiting interest amount from my surplus deposit right ?

  2. Hi Santanu,

    I have opted for SBI Max Gain. My question –

    1. Whether i am eligible for Section 24: Income Tax Benefit on Interest on Home Loan ?
    The maximum tax deduction allowed under Section 24 of a self-occupied property is subject to a maximum limit of Rs. 2 Lakhs .
    Currently the property is in Under Construction stage.
    2. Tax certificate provided by SBI comprises of what all details ?

    Kindly suggest what all options are available to me for getting the Tax exemptions ? I have recently bought the first home, loan amount 24 Lakhs, property price-34 lakhs.

  3. I took Max gain account with loan amount is 26,10,000 with interest rate is 9.4 %
    Tenure is 12 years with emi around 30,300.
    If we keep paying emi starting fom this month sep 2016, the loan will be closed on sep 2028.

    I have downloaded a max gain calculator , In the calculator What i see is
    if I keep adding 10,000 every month as surplus deposit to OD account starting from Jan 2017. The loan tenure is reduced to july 2024. My understanding is that loan will be closed in 8 years.

    But in some articles, I see that though we keep adding surplus deposit to OD account, neither EMI nor loan tenure gets reduced. If this is correct, then where am I getting benefit here.
    I downloaded calculator from http://emicalculator.net/sbi-maxgain-why-should-you-choose-this-home-saver-loan. If tenure period doesn’t come down, then why the calculator showed like this.
    Please correct me if any of my understanding is wrong. Any example with some explanation would be helpful to me.

  4. how to calculate my foreclosures charges if i am going to close it before 1 year?

  5. Hello Santanu,
    Do you have any example for maxgain home loan for under construction project.As I understand SBI will calculate intrest on disbursed amount. Like if we have example of user who has approved 30lacs loan for that he have choose full emi option from day 1 and bank has disbursed 3 lacs to builder in thist case bank will charge 3000 rs as interest(considering 9.5 % as ROI rate.So in maxgain the intrest diffrence for 30 lakhs (i.e 23000) and 3000 for 3 lakhs(i.e. 20000) gets added in OD account?
    Am I correct?
    In next month interest will calculated on “2980000”(That may be 19000)
    Q1. My query is in OD the difference between 23000-19000 =4000 gets added in OD account?
    OR 4000 rs deducted from my principle?
    Q.2 In above case can I show 3000 rs intrest for IT return or can I show 20000 interest for ITR?

    1. I m using odmax gain ..during disbursement ur limit reduces if u not pay interest I.e. The interest is also considered as principal withdrawn .and in the last term ur limit is less than sanctioned ..

  6. Hello ,

    I have taken HL of 32L from SBI Max Gain. I have around 4L remaining in the HL account. I am getting the possession of the flat in this week. After submitting possession letter to the bank, can i transfer 4L amount to my savings account ? So i can use it for furniture purposes. I dont have transaction rights to transfer money from HL account to Savings account right now, which i will get after submitting possession letter . Waiting for your reply . Thank you !

  7. Hi,

    I have taken a loan of 20L from SBI. Possession of the flat and EMI started simultaneously. I have been paying the EMI from Nov 2015. I parked Rs 3000/- in my max gain account last month. On 30th, Available balance was Rs 3000/-, but today it is showing Zero. As per the max gain account benefits, I can park and withdraw amount. Right? Can you explain me am I missing something here or is it some mistake from bank?

    How can I differentiate what is going for Interest and what is going for Principal repayment?

    I see some difference in deductions with description “Debit Interest” for the months November and December. Please help me.

  8. We are having home loan from SBI MAXGAIN and we want to make prepayment of 50000 Rs but bank is saying if you want to make part payment you should give check of 20% of your outstanding loan.

    Is this new rule of SBI and if yes then it’s a very big drawback for SBI maxgain customers.

    Please let me know is there any such rule or not.

    1. yes this is correct and unfortunately nobody talks about it. I want to deposit 1.5L only in principal amount to show in 80 c but can not do now.

  9. I have read somewhere, that if we deposit extra amount in OD account, that would definitely reduce the EMI but if duration the same time if property is in underconstruction state, then if we cannot withdraw the amount deposited in OD account.

    Please confirm if u have more information about the same.
    FYI – Planning to take Max Gain loan in coming week. Any response will be really appreciated

  10. I have taken sbi maxgain loan in Oct 13 now my book balance is -1885000 available balance is 17000 and drawing power is 19,000000 I want to reduce my tenure for 10 years can I pay monthly extra rs 6000 or yearly 75000 which will useful for me plz guide

  11. Flexi payment options also helps in better negotiations. The advantage of drawing money at any time gives them an edge above and thus ensure better rates of property also.

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