A "low interest" loan shouldn't mean you have very little interest in paying it back!
  • SBI Maxgain Home Loan Reviews

    The SBI MaxGain Home Loan gives borrowers the benefit of using their temporary surplus money to reduce the interest payable on their home loans. For instance, a home loan customer has funds for a while but cannot use it to foreclose the loan, instead has other obligations in the near future, he/she can put this money in the MaxGain Home Loan account. This surplus is deducted from the principal loan amount due, and the interest will be calculated accordingly. The surplus parked is available for the customer to withdraw at any time. This eases up the interest paid with each EMI and helps clear the loan faster.

    The home loan is sanctioned as an overdraft which will operate like a savings bank or current account wherein the customer can use the account as a regular savings account and maximize savings on interest.

    SBI MaxGain home loan Interest Rate:

    Category For women For others
    Loan Up to 30 lacs 7.10% p.a. onwards 7.15% p.a. onwards
    Loan Rs.30 lacs to Rs.75 Lacs 7.35% p.a. onwards 7.40% p.a. onwards
    Loan Above Rs.75 lacs 7.45% p.a. onwards 7.50% p.a. onwards

    Note: SBI has rolled out a limited period festive season offer for all its customers. Under this offer, borrowers will be able to avail home loans from SBI at interest rates starting at just 6.70% p.a. The processing fee for the home loans will also be waived off during this period. The offers can be availed by all borrowers irrespective of the loan amount. During this offer period, non-salaried borrowers will also be eligible for incentives.

    Features and Benefits

    • The loan is sanctioned as an overdraft. An overdraft is a credit line which is provided to customers against security. Interest is charged only on the amount withdrawn.
    • No extra charges to avail this loan.
    • The processing fee is the same as a regular home loan.
    • Cheque book, debit car3 and net banking facility is provided.
    • The minimum loan amount is Rs. 20 lakhs. There is no maximum limit.

    Experts recommend saving interest on loans rather than earning interest on investments in FDs. You are likely to get 1-3% higher savings. If the parked amount is higher than the loan amount, you can also earn 4% interest on it.

    Eligibility Criteria

    The eligibility for this loan is the same as a regular SBI home loan.

    • Minimum age – 18 years on the date of sanction
    • Maximum age – 70 years by which the loan should be repaid, also subject to ability to repay.
    • Income and repaying capacity, assets and liabilities, cost of proposed house/project will be accounted for.
    • Sanctioned for the purpose of purchase/ construction/ extension/ repairs/ renovation of new/ second-hand residential house/ flat/ plot of land and furnishings.

    FAQs on SBI Maxgain Home Loan Reviews

    1. Are there any extra costs to avail the SBI MaxGain home loan?

      No, there is no extra charge to avail this loan. If the loan exceeds Rs. 1 crore, 0.25% premium is applicable on the interest charged.

    2. How is the rate of interest determined?

      The rate of interest is calculated on the base rate issued by the RBI plus the prevailing floating rate which is subject to change from time to time. The bank has the option to increase or decrease the EMI or extend the repayment period when there is a revision in interest rate. Interest is applied on the loan amount at the prevailing rate per annum on daily reducing balance with monthly rests.

    3. I have purchased a plot under the MaxGain home loan scheme. Is there any time limit to begin construction?

      Under the MaxGain Home Loan scheme, you need to begin construction up-to/within 3 years of taking the loan.

    4. How do I use the MaxGain Home Loan account?

      You can use the MaxGain account like a regular savings account. You can avail of cheque book, debit card and net banking facility.

    5. How can I maximize my savings on interest?

      In order to maximize your savings on interest, park any surplus funds in this account. Start using the account as the primary savings bank account. Make all your transactions on this account like credit card payments, shopping, payment of utility bills, and so on. You could schedule a transfer of the fixed EMI to the account prior to the due date. This way you earn a reduction in the interest you owe using the EMI itself.

    6. Are there any charges on a debit card availed through my MaxGain account?

      There are no charges as such, but since it is an overdraft account and not a savings account, a fee is chargeable on any transaction made on the card from another bank’s ATM.

    7. How can I calculate my savings on interest?

      The bank will provide you a loan amortization schedule at your request. You can compare the scheduled interest outgo with the actual interest using this schedule.

    8. Can I get any tax deductions for the surplus amount parked?

      No, since it is not a pre-payment of the loan, any amount that you deposit in the MaxGain account will not be considered for tax deduction under Section 80C.

    9. Can I transfer my current home loan to MaxGain?

      Yes. Speak to your loan manager and request for the following:

      • Complete loan Account statement.
      • List of Documents (LOD) that you submitted at the time of availing the original loan.
      • Outstanding loan balance with applicable interest, penalty or any other fee to close the loan.
    10. Are there any interest-free or grace period before the interest clock begins?

      There is no interest-free period. The interest starts as soon as the loan is disbursed. You are allowed to take a payment break for an 18-month period on a new flat.

    11. I deposited surplus funds but I cannot withdraw. Why?

      If you have deposited surplus fund before full disbursal of the loan or for under-construction property, it cannot be withdrawn until complete disbursal. There will be a reduction in interest outgo because of this deposit and interest saved will get added to available balance. However, you cannot withdraw it till you get possession.


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    SBI MaxGain Home Loan Reviews

    • SBI
      "SBI Maxgain review"
      0.5 3.0/5 "Satisfactory"
      I have taken maxgain home loan from SBI last year. Product is awesome and really saves a lot of money. Only concern is service by the bank. In the world of digitalization they still are dependant on manual processes for most of things. So they need to work on this.
      Was this review helpful? 11
      , pune
      Reviewed on Feb 12, 2017
    • SBI
      0.5 4.0/5 "Great!"
      I have taken a housing loan with SBI, although the sales part was not good and I have to visit branch couple of times unlike private banks where they get everything done at my home, after sales services were excellent. They have given detail about the terms and conditions and there were no hidden charges. After signing the agreement every thing went on well. Post sales especially, the servicing part was really good as they were able to provide each and every information what I require.They provided lowest interest rate, Icing on cake was they provided maxGain facility (I can deposit and withdraw additional cash on the account and won't pay any interest on the extra amount in the amount) without any additional interest. In other banks there are two interest rates a) one for normal loan b) a slightly higher rate for max gain account.
      Was this review helpful? 2
      , bhubaneshwar
      Reviewed on Dec 10, 2014
    • SBI
      0.5 4.0/5 "Great!"
      State Bank India Housing loan: The customer service executive are good but the process was little bit slow and i got the loan amount got credited to my account in thirty to forty days. Since i chose this bank is that they offered the SBI maxgain plan.
      Was this review helpful? 7
      , pune
      Reviewed on Aug 28, 2014
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