Current EMI and I can add more to it. Current outstanding is 53lacs excluding the 8lacs surplus amount. My Questions: 1. Shall I withdraw the 8lacs surplus amount and deposit it back as a lump-sum, if so what benefit will it give me. Can i adjust it towards principal and reduce tenure? If so what benefit will it give me?
Shall I increase my EMI to reduce the tenure? Can I deposit lump-sum and increase EMI both at the same time and decrease my tenure? Or I shall continue parking the surplus in maxgain account without changing the EMI? It would be very helpful to hear your valuable advice on my queries. Thanks in Advance Aztek. Yes you can. By doing so you will get benefit on the interest rate. You can close your loan faster by adjusting it towards principal and reducing tenure. Yes you can increase your EMI to reduce the tenure and it will help you closing your loan faster.
You can do both of them together and the benefit will be the same as mentioned above. Parking the surplus in maxgain account will give you the same benefit as stated in point no. The maximum tax deduction allowed under Section 24 of a self-occupied property is subject to a maximum limit of Rs. Currently the property is in Under Construction stage.
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 lakhs. Have resolved your queries below: 1.
Yes you are eligible for Section 24 and you should also get exemption from section 80EE as you have applied for the loan first time. Sorry, but we are not aware about the details comprised in the tax certificate provided by SBI.
Say, I have taken a loan of 15 Lakhs. EMI 15K starts from Oct for 15 years. There will be an amortization table corresponding to it. Assume, am not utilizing the 15 lakhs till end of 14 years either not paying EMI or pay 15K on the 1st of month and take out 15K next day to maintain 15 lakhs. I requested for a Maxgain OD account. But, they opened a normal Home Loan account.
When asked for the reason, the bank person told that Maxgain account is opened for Loans of Rs 20 Lakhs or higher. Is it true? If not, is there any way that I can get the loan account converted to Maxgain account?
Yes you cannot opt or get the loan converted for Maxgain aacount, since your loan amount is below Rs. I want to repay my home loan…should i pay amount to max gain or max suraksha account? I gone through all the valuable questions that the customer asked here and satisfactory answers given by you.
Thanks a lot for all clarifications..! Hi Tarini, How are you!! I opted loan in oct with 9. You are on the base rate which is 9. If you wish to switch from base rate to mcrl rate, kindly get in touch with your bank. Before that go through this article to decide on that. Hi Tarini, Firstly, thank you for all your patience in answering these questions.
Query: Presently, I have a home loan with SBI which was taken 4 years back under maxgain facility for an apartment which is presently being repaid. I am presently allowed around 9. I wanted an another loan for my second apartment. Can i be avail maxgain facility with the same rate of interest 9. Please let me know. Sorry for the delayed response.
Thank you for your appreciation. You can definitely avail maxgain facility with the same rate of interest for your second home loan. Iam planning to take a housing loan of 22 lakhs under Maxgain and i have equivalent funds available with me which i may not require for another 10 years. If i opt to park the whole amount for next 10 years and avail a repayment period of 10 years, will be left with 22 lakhs at the end of my loan tenure with my housing loan stands closed?
Does that mean i will be paying out all the EMI for the entire loan only from the interest i gained every month with my parked amount? If you already have 22 lakhs available with you to purchase the property then why take the home loan and pay interest on it? You can simply use that to invest in the property. A few bits of information for you; 1. So even if you parked the money in the OD account, you have nothing to gain. I suggest that you rather invest that money elsewhere where you will get decent returns on your investment.
One option could be your property. Other options are FDs, RDs, liquid funds mutual funds etc. Nice to read this blog and seeing your sound advices. I am yet to get the possession which is due this dec, Now i am in need of another 12L for interior work, for which I need your advice to see which option is feasible —.
Want to apply an advance loan from my Provident Fund account to partly repay the home loan have sufficient fund for 12L and i already completed 10 years of service contributing to PF. How much long process will it take and will the interest rates be higher than my home loan interest rate? Assumption taken PF advance will be paid directly to SBI loan account only and not to my personal account since home loan account is active.
If there any other options as well please let me know. You can only withdraw the surplus amount that you have parked there this can immediate funds available with you, transfers from your savings account etc.
You will be able to withdraw any self parked surplus amount from the OD account once you submit a copy of the Completion Certificate in your bank. This will be treated as a proof of completion of property construction by the bank, after which they will activate debit feature of your OD account.
Top up loan: you can explore the option of taking a top up loan. It will be treated a separate loan and will not be clubbed with your home loan. The interest rate will be slightly higher than the home loan.
Hi Tarini Nice article. I have a question. I am planning to purchase an under construction apartment. So I wont be able to withdraw the money I parked in the OD account. Example: If my loan is 25L and I park 5L in account, what will be my interest?
I will be paying only interest in the pre-emi period right? Because, I see that the interest is calculated on Book balance and my book balance will be 20L right? Also, If I take moratorium for 18 months, and park some amount in the account, when they take the bulk interest, will they consider the amount I parked?
Example: 25L loan and 5L parked. At the end of moratorium, will I be paying interest for 20L for 18 months or 25L for 18 months? If you go for Pre-EMI, then you will be paying only interest on the disbursed amount, not the total home loan amount.
Yes, interest is always calculated on the book balance. Just to quickly clarify all the terms related to Maxgain home loan; — Drawing power: This reflects the home loan amount that has been disbursed.
It will reduce with every EMI payment you make. It should reduce in the same proportion as the principal component of your EMI. This can be verified against the amortization schedule provided by the bank it shows a break up of each EMI you pay, into principal and interest components — Limit: This indicated the maximum amount you are eligible to borrow.
The actual interest payable by you, is calculated on a daily basis based on this amount. Moving on to moratorium period; at the end of this period, interest will be calculated on the book balance only, not the drawing power. I have deposited 1,50, in multiple transactions and it was showing in available balance on JUN But when I checked on JUN it was showing only 1,47, I have not withdrawn any amount form this account and also we cannot see the statement for available balance.
Please get in touch with your bank immediately and bring it to their notice, it could be a simple technical error in their system or worse maybe.
They will be able to guide you best in this matter. Do let us know how it goes. Yes, available balance is withdraw-able. Available balance reflects the balance of your OD account. Any funds parked by you here, will be reflected by it. Unless, your home loan has been taken for an under construction property. If yes, then you will need to submit a copy of the Completion Certificate as a proof of completion, after which the bank will activate the online transfer.
Yes, if nothing works, then you can visit your branch and manually withdraw the money from your bank account. Haven't received the OTP? Several of our customers have had various doubts and queries regarding Maxgain home loan, so here are a few frequently asked questions by our customers, which will help you get a better understanding of Maxgain home loan: 1.
Does SBI charge a higher interest rate on Maxgain loans? As in Jan 2. Is it important to open a savings bank account with SBI? No, there is no compulsion to park a certain amount at all times in your maxgain OD account. As in Jan 7. How can I calculate my saving in Max Gain? What should I do to maximize the savings in Max Gain? Here are a few tips to help you maximize your savings in Maxgain home loan; Start using this account as the primary money parking account for all your liquid finances.
Route all your transactions through maxgain account payment of utility bills, online shopping, credit card payments , If possible. You can make use of net banking to schedule a transfer of the EMI amount to the saving bank account, a few days prior to the date of payment.
So not only can you park your surplus funds, but also park the EMI payments in the OD account to maximize savings on interest. What is drawing power? Drawing Power is your as on date actual outstanding Principal Amount. What is available balance? Can I transfer my home loan to Maxgain home loan? Get in touch with your loan manager for the same and ask for the following documents; Loan Account statement from day one.
List of Documents, which were submitted by you at the time of availing original loan. Email ID. Call me. I want to know more Sure, we will not call you unless you request it.
Have a question? Post it here and we will get back to you within 1 working day. Cancel reply. Suma Ganesh Oct 12 at pm. Hi Ashish, Is the credit reflecting now? Jitendra shekhawat Oct 01 at am. Hello, Here is my situation and i need your expert advice. I have some extra funds equivalent to the book balance, whats the best option i have.
Please advise. Suma Ganesh Sep 28 at pm. Hi Jp, Thank you for writing in to us Drawing Power is your as-on-date actual outstanding Principal Amount Available balance is the amount you may have parked in the account and any un-disbursed amount.
Limit is the over all credit limit I hope this was useful. Ashish Sep 04 at am. So I am not sure about theory that Drawing power is same as actual Principle outstanding. It would if great if you share some details. Limit is the over all credit limit I hope this helps. Atul Jun 26 at pm. Thank you very much Atul. Suma Ganesh Jun 27 at am. Hi Atul, Thank you for the word of appreciation!
Please help Lalit kumar. Suma Ganesh May 23 at am. Suma Ganesh May 11 at pm. Hi Sourabh, Thank you for writing in to us. Ajay Kardak Apr 04 at pm. Hi, First of all thanks a lot for this blog. Suma Ganesh May 23 at pm. Shekhar Feb 21 at am. Best Regards, Shekhar. Hi Tarani, i have taken home loan under Max gain policy, i have deposited nearly 4 lacks under surplus amount, what is the process to move this amount under principal amount? Kannan P Nov 02 at pm.
Suma Ganesh Nov 09 at pm. Rayu Oct 15 at pm. Hi Tarini, Your blog has cleared a lot of questions of mine on SBI max gain, like i was always keen to know whats my principal amount balance. Suma Ganesh Oct 24 at am. Ranjith Sep 30 at pm. Thanks in advance Regards, Ranjith.
Suma Ganesh Oct 27 at am. Nisha Jassal Sep 30 at am. Hi, We have a Maxgain account since before which we had a regular loan account. Shwetha Sep 26 at pm. Suma Ganesh Oct 30 at am. Ravi Sep 21 at pm. I have question regarding earning interest from surplus pared in OD account.
Kindly help with your insightful expertise. Yogesh Batra Sep 11 at pm. Suma Ganesh Nov 02 at am. Ninad Jul 04 at pm.
Sumita Nath Jul 05 at pm. Hi Ninad, Thank you for writing to us. Hope this will help you to take your decision. Anshul Gupta Jun 29 at pm. Hi, I have a maxgain home loan account and have following queries: 1. In view of the foregoing, a new Home Loan product which has been christened as "SBI Maxgain", has been launched in While customers will have to remit the Equated Monthly Installments EMI as in the case of usual Home Loans, the Drawing Power on the Overdraft will be reduced on monthly basis to the extent of the principal component of the EMI so that the Overdraft is liquidated at the end of the loan tenure.
Interest component of the EMI remitted will service the interest obligations. The extant schedule of service charges applicable to Current Accounts will also be applicable to these loans. As per extant instructions applicable to Home Loans including those for purpose, margin, security, processing fees, interest rates, penal interest, repayment, penalty on pre-closure of loan, pre-EMI capitalisation, pre and post sanction inspection.
Drawing power reduced on monthly basis. Customers will get the benefit by saving Home Loan Interest. Stipulation of minimum balance not applicable to customers whose salaries are regularly credited to this account and repayments are proposed to be made from this account.
Please verify against the same. I have an SBI Max gain account since more than 18 months. Presently I have parked an extra amount of Rs. My SB account has Rs. The request to deduct my EMI of Rs. The interest is debited to my account by the last day of the month.
As I do not have sufficient amount in my SB account, do the bank automatically deduct from the extra amount that I had parked in the OD account or not? I observed that in the current month it has not deducted it — or is my observation wrong?
Is the penal interest yearly or monthly. Please pay your EMI immediately to avoid any penalty and negative impact on your Credit score! The additional penal interest is calculated on a monthly basis.
How can I calculate Installment payment for a under-construction property? The amortizaion scheduler provided along with the blog post works with a floating interest rate only for a borrower making full EMI payments, unfortunately its not designed for a fixed interest rate home loan. Also, are you sure you are on a fixed interest rate in SBI Maxgain?
Hi Tarini, Your post is very useful. I have a SBI regular home loan with my mother as co-applicant. The loan of 24 lakh was taken in Dec and I have already paid back 5. I am a software engineer by profession, I got to know about this SBI Maxgain account recently and I am realizing that this is the best option for me as I will be having some surplus amount every now and then. But, my loan manager did not respond properly, and gave a negative opinion about changing my regular home loan to SBI maxgain.
Somehow, I feel I really want to switch this loan to such loan account with benefits of parking money. Can you suggest me, how can I defend with my Branch manager, is it possible to switch my regular home loan within SBI at all?
I regret to inform you that its not possible to switch within SBI to the SBI Maxgain scheme due to a technical error in their internal system. I have HDFC home loan and now after 1. If I am putting some amount in my OD account then as per maxgain benefit I will have saving on interest. Yes, you can make only repayments in the entire home loan tenure. However, you can still get the benefits of repayment by parking your surplus money in the OD account.
This will help reduce your book balance the amount on which interest is calculated in the same way as a prepayment would. Yes, it is true that the balance parked in your OD account will actually keep your EMI payments just the same, but it will also help reduce the interest that you pay on the entire loan.
So essentially by parking money in your OD account, you can close your home loan sooner than the actual loan tenure and the constant EMI payments will cover for the decrease in interest payments — helping you close sooner. I hope this clears the confusion. Could you please elaborate? It will help me answer your query better. I have applied for home loan of 40Lac from SBI , they suggest me SBI Max Gain, I could not able to understand the benefit of the same, I have already made 2 payment from my saving for the under construction flat and will try to make another 2 instalment from my savings, which means i may be using 30 lac only from loan amount, can you explain me what is a benefit of SBI Max gain.
Also SBI asked me to take life insurance for 40Lac for 20yrs which is costing me around 1. This account helps you save on your EMI payments, this is how it works: In Maxgain you will see the following accounts- book balance: This is the amount on which you pay the interest on.
Its calculated as — drawing power minus available balance. So by parking all your surplus money in the OD account even if for a short duration , you can save substantially on your interest payments. Do note that the interest rate for Maxgain has been increased to 9. Regarding the life insurance, its best to take an insurance that covers all your EMI payments in case of any unfortunate incident. Me and wife have around 22 years back availed a loan which was paid off in ten years.
Then I had availed another loan in which was sjhortclosed. Both with HDFC. Now I am trying to avail another loan from SBI for a property jointly owned by may daughter, wife and me. So I had to give consent for the same.
Is this right? Is there a way out to avail the maxgain loan. Its quite possible that the banks may have refused to give you a loan as they refrain from lending to blood related co-borrowers. A detailed explanation will be of great help please. You can claim tax benefits on the all EMI payments once you have taken possession of your property. After possession, you can claim tax benefits in 5 equal installments over the next 5 years, only if the construction is completed with 3 years of taking the loan.
If the construction phase exceeds this time frame, then you will able to claim tax benefits on payments made during this period only up to a limit of Rs. Haven't received the OTP? Mehta; Mr. See how he can use this sum in the case of a Maxgain home loan and a normal home loan to bring his interest burden down; Normal Home Loan: He can deposit the entire sum of 10 lakhs in the home loan account and prepay his loan, reducing his loan amount to Rs.
Maxgain Home Loan: Here, he can park the sum of 10 lakhs in his home loan account, reducing the principal amount on which interest is payable to Rs. Maxgain loan Vs. Normal loan. Email ID. Call me. I want to know more Sure, we will not call you unless you request it. Have a question? Post it here and we will get back to you within 1 working day.
Cancel reply. Jeetendra Oct 05 at pm. Suma Ganesh Oct 12 at pm. Hi Jeetendra, Thank you for writing in to us Here are the responses: 1 The bank will not charge you for depositing funds in any account 2 Yes, you can prepay your loan at no extra cost.
Ganeshkumar M Nov 09 at pm. I have a Question here. Could you please provide some insight on this? Thanks, Ganeshkumar. Vishu May 08 at pm. Hello Guys! Thanku Much Vishu. Sumita Nath May 11 at pm. Hi Vishu, Thank you for writing to us. Sumita Nath Nov 28 at pm. Hi Suryawanshivpal, You can get the report over email or if you are using net banking you can see it by your-self.
Santosh Aug 20 at pm. Sumita Nath Sep 28 at pm. Hi Santosh, I would recommend you to go with max gain as it helps you to repay your loan faster. Hi Rani, You will have to intimate the bank to deduct your surplus amount from the outstanding principal amount for foreclosing your loan.
Kumar Jul 25 at am. Sumita Nath Sep 29 at pm. Hi, You can go with max gain account for which you need to open salary account any which way. Ganesh Jul 12 at pm. Sumita Nath Oct 05 at pm. Hi Ganesh, Max gain benefits can be availed only on the home loan and top loan has a separate account. Tushar S Chaudhari Jun 04 at am. Hi, I have a maxgain account with 9. Regards, Tushar. Tarini Jun 06 at pm. Hey Tushar With respect to Maxgain account, parking the money in your OD account will give you the same benefits as prepaying the outstanding loan.
Tarini Jun 03 at pm. Prashant May 08 at pm. Hi Tarini, Thanks for this awesome post. Thanks in advance, Prashant. Tarini Jun 28 at pm. Tarini Jun 07 at pm. Hey Sasirekha I apologize for the delayed response to your comment.
0コメント