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.

Features and Benefits of the SBI MaxGain Home Loan:

• 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 Interest is charged only on the amount withdrawn.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 card 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 for MaxGain home loan SBI:

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.

SBI MaxGain home loan interest rate:

The interest rate is the same as for a regular home loan.

If the loan exceeds Rs. 1 crore, then an extra premium of 0.25% is applicable.

SBI MaxGain Home Loan MCLR Rate:

The State Bank of India announced its Marginal Cost of Funds-Based Lending Rate (MCLR) on November 1, 2016 at 8.90%. The SBI will consider the 1-year MCLR rate as its benchmark for home loans, which means that the interest rate will be reset at the end of every one year for home loans. The spread above MCLR for Maxgain home loans are as follows:

SBI Maxgain Home Loan FAQ:

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.