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Hi. Yes it is high especially since we are customers and yet pay the valuation and legal charges. Banks should be owning this. This is classic case of our banking system still exploiting the customers.

Was wondering what can be the best repayment pattern for Maxgain. I recently availed a HL of 32L from SBI. My EMI stands at around 31k per month.

Considering my monthly income and the living expenses, it will be easy for me to repay around 30 to 35k additional as OD, thus making the monthly total outflow 61-66K.

This may sound like a very newbie question in the HL territory, but is it wise to start my repayment stretching to the maximum I can handle? What would be a best pattern of repayment over the initial 6-7 years if one asusmes that monthly income will at least stay the same in the worst case?

I have been asking around friends who availed Maxgain to undertsand the Amortization schedule by which a Maxgain home loan work, it all makes sense to park whatever money we have at hand, but just wanted to know if there are any tips/hacks that can make it work in a better way?

I am no expert in Finance, but going by my own experience around HLs, yes, pay as much as possible into the OD account. Infact you should park all your savings there. That way, you should be able to finish your loan in 12-13 years with the numbers you gave above. I will PM you the calculator I have.

MaxGain payments are better than FDs or debt funds. In FD, you get 10% interest and end up paying 3% as tax therefore net growth is just 6-7% per annum. Better pay that fund into OD and save 10.25% off your home loan interest.

I can PM you branch manager details. Deal directly with her. She is very helpful and professional.

I recently transferred my HL to SBI Maxgain. It took a month or so. I had to buy property insurance and life insurance cover as these are mandatory as per SBI rules. Overall had a pleasant experience. The credit goes to a SBI PBB branch manager. She is a very professional lady unlike typical SBI staff and prompt in her actions.

I have a query.

I have taken Maxgain HL. I am yet to get possession of the flat and will be getting it in a month or so. Maxgain facility can be availed only after I get possession of the property. So till then if I transfer funds to OD account, it will be treated as pre-payment. Please correct me if I am wrong.

How? Maxgain and normal loans have same interest rate. 10.10% for ladies and 10.15% for general. Did you get lesser rate than this?

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.

That is right. Till posession and 100% disbursal, any payments you make will be considered as prepayment (not withdrawable - OD).

SBI has stopped issuing ATM cards for maxgain account holders as per Bund Garden branch, Pune. This is a step in reverse direction, as getting the money out of maxgain account will mean transferring it to other via cheque or online transfer.

^^ Offlate some of SBI's decisions are regressive in nature. They have already revised other charges also. Some charges have been increased steeply.

I read somewhere that they don't issue a new ATM card but they will link the existing ATM card to the OD account. You may check it with SBI branch.

Hi,

As part of the SBI MaxGain home loan, I have been regularly pushing some amount in my linked OD account(as pre-payment). I now, want to transfer this sum as a "real" pre-payment against the home loan.
Has anybody done this already? If yes, can you kindly share the process steps/documents required?

Thanks in advance.

You can simply do a NEFT transfer to your loan rather than OD account.

How Suresh - I don't see that option when I logon to SBI portal. It shows up only as an OD account , and I end up transferring to this specific account, even though its a loan account. But yes, each time I transfer some money, I do see the EMI reduced for the subsequent months. :)

NEFT transfer takes the money into the OD account rather than reducing the actual Home Loan principle.
That is the default behavior and that is how I have been making "pre-payment" transfers for last 2-3 years. However, with increase in tax limits on home loan principles, I want to transfer my OD fund to actually reduce the home loan principle for this year.
I know you have to visit the nearest RACPC office for this. However, knowing SBI, I want to avoid multiple trips to RACPC just because I missed carrying any document with me.:Frustrati

Yes, your EMI will get reduced because the money you transferred was put in an OD account and this amount is used to "mathematically" adjust your outstanding principal.
If you have a loan of Rs 100 and you pre-pay Rs 10. Then next month's EMI will be calculated assuming a pending Principal of Rs 90. However, this does not mean that your actual Home Loan principal is Rs 90. Your actual Home Loan principal is still Rs 100 only.
So, you save interest on the amount you "pre-pay" but, you do not get Income Tax benefits on the amount pre-paid since, its not an actual pre-payment. Its just an amount you have parked with SBI which you can withdraw anytime.
In order to claim tax benefits, this pre-payment should actually get adjusted against the Home Loan principal which local RACPC office does on special requests. At least, this is how it works. :D

I think you will need to intimate the bank for the same. Out of curiocity, why would you want to do this? The max IT saved in interest payment is 1L only. Any other reasons that you can disclose or hint?