Doubt about SBI Max Gain

[Naveen Kumar]

Hi all,

I have taken loan during one of the earlier camps for LIG VK.

When I see Account Information on the onlinesbi website, I can see something called "drawing power" & "limit".

Can someone explain me what is that?

Will our number of EMIs be reduced if we have extra cash in our max gain account?


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Cheers
Naveen Kumar

[Sonalika Prasad]

SBI Max gain is a kind of overdraft account, it's not the usual type of home loan. You can withdraw money from this account, and should must ask your bank to provide you a cheque book and an ATM card.you can use this as your savings account and can park your surplus funds here and withdraw from your available balance.Since the interest is calulated on a daily reducing  balance, your interest gets reduced for that day.The EMI can never change but parking suplus funds reduces the interest a lot and the repayment period.. I was given a estimate chart.Attaching the same for your refernce.

[Naveen Kumar]

Hi Sonalika,

Thanks for the reply.
As you mentioned the EMI will not change but repayment period and interest component will change if I have surplus fund in my account.

I can see interest component reducing if I have extra money in my max gain account at the end of the month but I am not sure about repayment period reduction.

SBI is charging less interest if you have some surplus money parked in the account but the remaining money is not taken as principle instead it is added to the "Available Balance" which we can withdraw.

Effectively its reducing my EMI as I can use that "Available Balance" somewhere else but not the prepayment period.

Please let me know if my understanding is correct.

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Cheers
Naveen Kumar

[Sonalika Prasad]

See at the end of every month they deduct some amount from your account. That component which is deducted from the available balnce is the interest.rest of the money remains in the available balance which is towards your principal(yes that goes towards the principal, which you can also withdraw!). to understand the same please see the SBI max gain statement after 2 or 3 months , this will help you understand the working better..

[Naveen Kumar]

Hi Sonalika,

I have taken loan 6 months back, the remaining amount which goes in the "Available Balance" doesn't goes for principal repayment.
That amount will reduce your interest burden further next month but won't reduce the repayment period.

Good thing is that indirectly its reducing our EMI and money is getting collected, Bad thing is that if I have money in hand at my disposal, I will spend it. :(

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Cheers
Naveen Kumar

[Manu Mewari]

har kisi ko muqammal jahan nahi milta,
kisi ko zameen, kisi ko aasmaan nahi milta,
paise hain to unko bache ke rakho,
kharch kar dene se max gain ka maza nahi milta...

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Manu Mewari
Team Lead (Java,J2EE)
LinkEdge Software Solutions
Gurgaon, India
HeadOffice : USA , ChatsWorth

[Anupam]

Deposit and Forget Naveen... :P

[Naveen Kumar]

Only small portion of the EMI paid is collected as principal repayment as that small portion is deducted from your "drawing power".

If everything else would have taken as principal repayment than remaining portion of EMI - Interest should reduce the drawing power.

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Cheers
Naveen Kumar

[Naveen Kumar]

hahaha, well said Manu.

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Cheers
Naveen Kumar

[Manu Mewari]

shukria shukria.... :P

incomplete flat ki emi ne hame shaayar bana dia,
warna programmer hum bhi kabhi kaam ke the...

[Pankaj Yadav]

Hi Naveen,

 see this might not be getting reflected in the statement, but if the interest is getting reduced and the EMI they are deducting is constant every month. The rest of the portion of the EMI (other than the interest) has to be the principlan repayment and since principle is reducing loan term will have to reduce ....

the drawing poer increase is only for the delta time that is the time you deposited the surplus amount - the time at which emi is deducted after that you can see the drawing power reduces slightly .... !!!

regards
-Pankaj

[Sandeep Kumar]

Bahut khub Manu 'Ghalib' Mewari. Kahan java main ghuse baithe ho,
bahar niklo aur naye talent pe kaam karo.....................:)

On Apr 25, 10:11 am, Manu Mewari <manumew...@gmail.com> wrote:
> har kisi ko muqammal jahan nahi milta,
> kisi ko zameen, kisi ko aasmaan nahi milta,
> paise hain to unko bache ke rakho,
> kharch kar dene se max gain ka maza nahi milta...
>
> On Wed, Apr 25, 2012 at 10:39 AM, Naveen Kumar

> <naveenkumarve...@gmail.com>wrote:

[RAJAT SARIN]

Manu

Script likh raha hai ya sher ...Boss marega bhai ...hahahhahahahaha

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Regards,
Rajat Sarin

[Manu Mewari]

:P

[ved Kashyap]

Hi ,

Provided amortisation schedule is incorrect if we are looking for comparing ordinary home loan vs max gain, attaching the correct calculator to give everyone a correct perspective on saving potential in terms of Interest payout. If you are smarter soul then more money can be made of spare funds then trade off with interest saved in Maxgain.

Choice aapki aakhir paisa hai aapka :-)

Cheers

Ved /09811697494 

[Nitin Jain]

Hi Naveen,

 

It seems that you have a good understanding of Drawing power and principal repayment in maxgain. I deposited Rs. 1 lakh extra in two slots of 50k in my max gain home loan account, but the maxgain statement shows withdrawable amount as around Rs. 83k. I need to understand this. where has my 17k gone. also if i park my extra money in the maxgain for long will it keep reducing the withdrawing power every month? What is the justification and what is the formula to calculate how much per lakh will be redued from my parked money?

 

Please reply.

Thanks

Nitin

[Sandeep Kumar]

Hi Nitin,

There is no way your with-drawable amount go less than what you deposited extra to save tax in your account. In fact the extra money shouldn't be reduced but will keep increasing based on the interest you saved each month because of that. You should approach SBI loan branch/RACPC immediately to know the reason for this discrepancy and resolve this on priority basis.

Regards

[Aniket]

Hi Nitin,

Drawing power = outstanding loan amount (which reduces with every EMI payment)

Available Balance = The surplus amount you have deposited + the interest u gain on that amount (which increases every month if u have any surplus money parked in MaxGain) 

SO you should look for your 1 Lakh in the available balance.  

Thanks,

Aniket

[Muhammed hasnain khatri]

Hiii Nitin

Exactly, what has happened with me as well... is this your first month of maxgain....

Even mine balance has gone down by appx 11000....and this happened after 21 Oct.

Call me 9820780281 incase if you have any justification for the same please call me....

Damn worried about the same.

If possible give me yours contact no.

[G]

I am also a SBI maxgain user and i have a question. I want to prepay 20-25 lac kindly advise what shoul i do. Should i park the amount in maxgain account or prepay to the bank... What is better.

[Sandeep Kumar]

If you know you will not need the amount you want to prepay in near future than it is better to prepay otherwise keep in MaxGain account.

Regards

[MOHIT MAGARDE]

Hi Nitin,

I was browsing on "SBI max gain available balance issue" and I saw you post.

The same thing is happening with me now.

Do you know the reason for this issue?

Thanks

Mohit