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Old 24th July 2015, 13:46   #151
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Default Re: SBI Home Loan : How long it took ?

I walked into my home branch at Koramangala and on enquiry was guided to the home loan section. I was introduced to a home loan counselor who gave me a check list of documents. I had all documents pertaining to me and for a few, I had to approach the builder. On submission, it was followed by site verification, office check, evaluation, umpteen follow-ups with the counselor and finally an appointment at the RACPC. RACPC is where all the documents submitted during the application are filed and a file number assigned. On completion of signing a lot of pages and a few days later, a loan account was created and the loan amount for the previous bank was processed as a DD.

I submitted my loan application form on 18-April. It was a switch over from another bank. The loan was sanctioned on 18-Jun and the disbursement on 25-Jun.

So I would say, plan for 2 months to get the loan sanctioned. If one is aggressive and can be pushy at the first stage with the loan counselor, it might be possible to get it done a little earlier. Good luck !
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Old 8th September 2015, 18:52   #152
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Default Re: SBI Home Loan : How long it took ?

Quote:
Originally Posted by anujmishra View Post
The rule is there for third home loan not for second home loan. I just took third home loan and first one is closed. Second one almost at end. I was denied SBI MaxGain as the third loan is termed as CRE (Commercial Retail Exposure). However, I did not see any harm in it. Infact I got less interest rate than MaxGain Loan by 0.2%. Whatever Savings I will be having in Future, I can directly transfer to loan account.
Quote:
Originally Posted by anujmishra View Post
When I processed 6-8 months back this was not the rate. I was quoted 10.45% for CRE Loan & 10.65% for MaxGain. You may have to ask your SBI branch for CRE Loan interest.
Can you please throw a bit more light on this? Would be a huge help.

I am being told that the only difference between a normal loan and a CRE loan is that they charge 0.45% interest rate extra for CRE loans.

They have quoted me 9.70% as the current rate for a normal loan (with Maxgain facility), but since mine is a CRE, the interest rate would be 10.15% (with Maxgain facility).

They are giving me a choice to either take the loan at 10.15% interest rate with Maxgain, or at 9.70% without Maxgain.
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Old 5th October 2015, 11:25   #153
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Default Re: SBI Home Loan : How long it took ?

Question to SBI Maxgain HL holders:

It has been two months since my EMI payments started, still I am not seeing any reduction in my "Drawing Power". This means that the principal part of my repayment is not being properly accounted for(?).

As per the info available on the web the principal portion of the EMI should go on to reduce the drawing power.

Quote:
Principal portion of the EMI is applied on the date of EMI payment and goes to reduce the Drawing Power and the Limit. The principal portion of the EMI is calculated as per the original amortization schedule. Surplus amount deposited in the OD account and accrued interest savings do not alter the principal portion of the EMI.
http://emicalculator.net/sbi-maxgain...ome-saver-loan


Have any of you faced this issue when you started your EMIs?

Last edited by clevermax : 5th October 2015 at 11:26.
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Old 5th October 2015, 11:31   #154
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Default Re: SBI Home Loan : How long it took ?

Quote:
Originally Posted by clevermax View Post
Question to SBI Maxgain HL holders:
Not a SBI Maxgain holder, however I am currently going through SBMysore's Maxigain.

During discussion with branch manager, he mentioned that OD facility will get enabled only after the registration of property is done. Till then you will not be getting the benefit. I am not sure of the details and how it works out, however may be you can check that out if the property registration is not done in your case.
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Old 5th October 2015, 16:02   #155
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Default Re: SBI Home Loan : How long it took ?

Quote:
Originally Posted by mpksuhas View Post
Not a SBI Maxgain holder, however I am currently going through SBMysore's Maxigain.

During discussion with branch manager, he mentioned that OD facility will get enabled only after the registration of property is done. Till then you will not be getting the benefit. I am not sure of the details and how it works out, however may be you can check that out if the property registration is not done in your case.
It was done a year ago, and I was running on pre-EMI mode till now, so it may not be a reason for this issue, I guess.

The same happened with a friend of mine also, he had to go to the branch and fight with the manager to get it sorted out.
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Old 7th October 2015, 09:04   #156
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Default Re: SBI Home Loan : How long it took ?

UPDATE: There is something called "Limit reduction" which need to be manually set by the bank, in order for the Limit and Drawing power to reduce. The Manager told me that Principal repayment is being accounted for, but unless and until the Limit Reduction is set, it won't reflect in the Drawing Power and Limit as seen by you.

Still wondering why it is a manual process - it could have been very well made automatic.
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Old 11th March 2016, 14:03   #157
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Default Re: SBI Home Loan : How long it took ?

The interest paid per month on my Maxgain HL was being tracked. When I look at it after about 8 months from the full loan disbursal, the benefits of this loan is clearly seen.

I have been putting almost all my income into the loan a/c for the past several months. This is done with the confidence that I can withdraw the available balalce anytime, even via ATMs. If it was another HL, I would not have had the confidence to put all my income into the repayment blackhole. Mostly I would have ended up paying EMI plus little more, and saved the remaining money in other accounts.

The plot shows a green line which is the actual interest I am paying every month, and the interest which I would have been liable to pay; if I was only paying the stipulated EMI every month.

Name:  maxgaininterest.png
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Old 11th March 2016, 15:45   #158
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Default Re: SBI Home Loan : How long it took ?

Quote:
Originally Posted by clevermax View Post
The interest paid per month on my Maxgain HL was being tracked. When I look at it after about 8 months from the full loan disbursal, the benefits of this loan is clearly seen.
I am a big fan of the Maxgain HL facility. I had used this facility for one of my home loans in the past and the difference between this and a second HL I had from LICHFL was clear as night and day. I was able to pay off a loan of 10L in 3 years' time.

I think now SBI has tightened the norms for Maxgain HL and also charge .25% extra interest on Maxgain compared to their other HL products. But it is still worth it anyway.

I would've loved to go for Maxgain for my new home loan. But the builder has an agreement with another bank, so I had to go with them. I will surely switch to SBI Maxgain once the entire loan is disbursed.

Quote:
Originally Posted by clevermax View Post
UPDATE: I talked to the loan processing official in SBI. He says that, as long as I have surplus amount in my OD account, I need not worry about making an "EMI Payment" per se.So, if there is surplus amount in the OD account which is more than [Principal + Interest] deductible for that month, I need not even make any payment to the loan account for that entire month.

This is what the official told. If you ask me, this makes sense and it is the most logical thing for the system to do.
I can confirm that this was the way it was for my Maxgain HL. I had a savings account with the same SBI branch and I had given signed cheques for the first 12 EMIs. After those 12 installments, SBI did not even ask me for more cheques or SI for deduction from SB account as I always had enough amount in OD account to cover the EMI charges.

Last edited by StarrySky : 11th March 2016 at 15:55.
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Old 14th March 2016, 11:58   #159
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Default Re: SBI Home Loan : How long it took ?

Quote:
Originally Posted by StarrySky View Post
I think now SBI has tightened the norms for Maxgain HL and also charge .25% extra interest on Maxgain compared to their other HL products. But it is still worth it anyway.
Never thought Maxgain interest rates are higher than other HL products. My Maxgain interest rate stands at 9.45% as on today. When I told this to HDFC loan guys, there were surprised and they told that they cannot offer such a lower rate.
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Old 14th March 2016, 13:55   #160
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Default Re: SBI Home Loan : How long it took ?

Quote:
Originally Posted by clevermax View Post
Never thought Maxgain interest rates are higher than other HL products.
I think the interest rate is same for both regular and Maxgain home loan.

Recently they have stopped issuing debt cards for Maxgain accounts.
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Old 14th March 2016, 15:45   #161
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Default Re: SBI Home Loan : How long it took ?

Quote:
Originally Posted by clevermax View Post
Never thought Maxgain interest rates are higher than other HL products.
Quote:
Originally Posted by MaxTorque View Post
I think the interest rate is same for both regular and Maxgain home loan.
I should've read the complete sentence in SBI website. The extra charge is applicable only for Maxgain HL above Rs.1 crore.
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Old 28th June 2016, 23:57   #162
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Default Re: SBI Home Loan : How long it took ?

As of June 2016, MaxGain has an additional interest rate of 0.5% when compared to the regular housing loan product from SBI. I still feel, the benefits outweigh the additional cost.
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Old 12th September 2016, 16:23   #163
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Default Re: SBI Home Loan : How long it took ?

Few months back I closed my SBI MaxGain home loan. Turned out to be a bitter experience at the time of closing and I am now seeking advice and help from fellow bhpians. Hopefully it will also serve as a cautionary tale before others decide to take a plunge on dealing with the inefficiencies and lack of transparency with a sarkari bank for the sake of any potential savings.

I took the SBI MaxGain HL back in 2012, paid pre-EMI for about 6 months (as the flat handover was not complete) and since then until June 2016 I had the EMI automatically deducted from my savings account. During this time I parked all my additional savings in the MaxGain account and I had thought I was saving interest with much of my EMI going towards principal. These parked funds were quite substantial and were for several months in duration.

The twist and heartbreak was at the time of paying off the HL a few months back. I had to pay the entire principal amount that I had taken at the time of HL disbursement to close off the loan. In fact I slightly paid several more thousand rupees over the original principal amount to close off the loan. Now this was utterly shocking to me. I was expecting the total outstanding amount would have been lower by at least by a few lakhs if not more.

The trouble was the complete lack of any information from the bank either online or from the bank staff in person. They could not explain to me on how this could have happened that after a couple of years of paying the EMI (and not to mention parking surplus funds in the MaxGain account) the principal had not reduced at all. There was no information or statement to tell me how much of the loan principal I had paid and how much went to the interest. And why the parked surplus funds did not help in reducing the principal. The manager just pulled up my account in front of his computer and showed me the outstanding amount I had to pay to close off the loan but could not tell me more.

Upon followup request in person I got a multi page transaction statement which was not helpful at all. Its just a detailed list of transactions on the home loan account. It includes a bunch of credits/debits to my OD account along with my EMI payments. The bank staff claim there are no other statements it can provide. Their claim is its all automated and the outstanding principal that I had to pay was shown by the system and must be correct. I am not sure and remain unconvinced though. For example, my annual home loan tax certificates from the bank claim that I have been paying off some principal every year too. But the manager has no good explanation on that discrepancy and blamed it on the nature of MaxGain HL which made no sense.

This MaxGain business was a pain from the start. I had to make multiple trips to RACPC to get access rights to the OD account. I had to visit again for EMI creation. From the start I had little visibility from the online netbanking site. I thought I was doing the right thing by going with a sarkari bank inspite of the paperwork, delays and multiple trips but instead I only have regret and feeling I should have known better. Its a complete pain and not worth the trouble at all. My wife and I took out a ICICI home loan as well and the extra charges if any were worth it given the service was outstanding and we don't recall feeling ripped off.

I am glad and fortunate I was able to close the loan off though and the money blackhole that this was is no more. But it pains me to not have a clear idea on where my money went in these three years. There was no summary statement from SBI to tell me how much I paid in total, how much of it went to Pre-EMI interest, HL interest and repaying the principal and the interest I saved in parking my surplus funds. On asking the manager suggested I calculate this myself from the transaction statements but there is no info on where my principal component of the EMI has gone. Is there any way I can get this information? The bank manager though sympathetic and tried to be helpful couldn't provide me this information and claimed even RACPC staff wouldn't be able to help here.

My feeling is something went horribly wrong in the way they have setup my MaxGain HL in their system. Now I am at a loss as to how to proceed to have them investigate.
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Old 12th September 2016, 17:40   #164
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Default Re: SBI Home Loan : How long it took ?

At least at the beginning of the loan - which the first four years of a say 20...25 year loan certainly is - the principal component is substantially low in your EMI and most of the money goes towards servicing interest. So that is not quite as much of a surprise as it should be.
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Old 12th September 2016, 19:21   #165
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Default SBI Home Loan : How long it took ?

Hi Trishul. There is no issue with the scheme but as @hserus said it is your understanding of the scheme.
Note that the excess park funds reduce the amount of interest charged that month proportionally since the interest is charged on monthly outstanding (or if using daily reducing then the daily outstanding).
The saving in interest payout is the real gain here and not really the term of the loan or principal outstanding. This is how my car loan OD account is behaving as I have almost loaded up the entire outstanding barring a few thousands to keep the loan active. Harish
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