Dear Friends, I have uploaded the 2nd video on SBI Max Gain on my Youtube channel. Here is the link for the same. Please check the video and inform me for your queries, views, comments.

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41 Responses to SBI Max Gain Home Loan – 2nd Video

Dear Pratik, have checked the google sheet prepared and shared by dear Srikant Billurkar in one of the comment in August 2013 in main SBI max gain article in the blog?

Thanks a lot for your reply.
I found the required excel sheet.
If possible, kindly send me your mail id so I can share my maxgain transactions.
I need your assistance in clearing my doubts.

I see that monthly SIP’s vs quarterly SIP’s almost have same gains over 4-5 years. So with this data wouldnt it be prudent to do a quarterly SIP from Max gain account to benefit more from the extra cash atleast for 2 months in the quarter?

Can you pls email me the Amortization schedule under max gain in excel to my email id. Also whether it is possible to workout the schedule using option of FULL EMI from first disbursement for CLP Loan?

I have availed of a max-gain loan for construction of house. The loan has only been partially disbursed but the EMI’s have started.

After the first EMI was taken via ECS I was expecting the drawing power and available balance to only reduce as per amortization schedule but it has been reduced by an amount close to the EMI paid. Do you know why this happened? Is there a change in the way MAX Gain work recently?

I have a query. I have sent/ attached screenshot of my max gain account to your email.

I have taken a Home loan of 40 Lakhs in August 2014 out of which 3510901 has already been disbursed( 2 installments from october 2014). and I had deposited 1 lakhs in OD to
be used for reducing the loan outgoing.my EMI is 41,100 and I will get possesion hopefully in march 2015 and had asked the bank to start EMI from day 1 but I am not sure if they have started it from the attached statement. I do see one debit of 41,100 on 10th Nov but I can see 2 debit interest entries of 10470 and 27288. what are they for if my EMI is getting deducted? How is that interest charged and at what rate? can you please help me understand my statement.

Thanks for your reply. as per the statement which I have sent in your email I am writing the gist below.

the drawing power is 40,00,000
book balance is 34,06,997
the available balance is 5,93,003
limit is 40,00,000
uncleared balance is 0
lien amount is 0 -????what is lien amount?

following are all transactions
30 Nov14- debit interest 27,288
11 Nov14 Transfer to builder- 3,73,336
10th Nov autodebit from my account to max gain -41,100
2 Nov 14 I deposited from my account to max gain-1,00,000
30 Oct14- debit interest 10,470
29 Oct 14-by clearing credit -562- Didnt get that???
20 Oct14 Transfer to builder-3137565

Hi Ashal, Your video has been very helpful. I have SBI Maxgain on CLP plan and I am paying interest only. I have some cashflow to start EMI and want to reduce the interest amount. Two options which I have:
1. Converting pre-EMI to full EMI option (as you suggested). Hence start paying the EMIs every month.
2. Keeping pre-EMI option but keep depositing EMI into the loan account by myself.

I feel both options are almost same. In both cases, I can NOT withdraw the deposited amount and interest charged in both cases will remain almost the same.
However in option 2, the amount deposited will become ‘Available Balance’ after possession and I will be able to withdraw that. Hence option 2 looks better.
Am I thinking correctly Or missing any point?

Regards,
Varun
PS: posted the same query on your Youtube video.

Nice video but somehow my calculation is not tallying with current status of my account

This is the status as on 16th september

Book Balance : -28,55,141
Available Balance : 4,05,479
Limit : 32,60,620
Drawing Power:32,60,620
Uncleared Balance:0
Rate of interest:10.1%

Loan amount is for 32,68,000

Account Statement
Debit Credit
18 Aug 28,76,000 – First disbursal
31 Aug 11,141
15 Sep 0 32000 – First EMI

I could not understand how Available balance is 4,05,479. How the 32000 is separated into principal and interest component here as full disbursal has
not happened yet.Could you help ?

Could you please see if you can give us comparison between tranch based emi repayment and max gain? Do you feel tranch based emi is good when the project is CLP? Also in max gain, there is no way the surplus adjusted with number of emis? Please let me know.

Thanks for a very informative video.
I have a query suppose someone has upfront funds to give to a builder lets say 20Lakhs so is it advisable to park this money by opening a sbi max gain account for 20 years let say so if need be the money can be used whenever required.. if yes how can one benefit from same as in this case it will be 0% interest if we do not withdraw any money. will bank keep putting back the interest portion every month for 20 years or it will ask you to close the account? I am a bit confused

Dear Peeyush, in overdraft account, you do not earn any interest from bank. Either you pay interest on your withdrawn amount (homeloan in case of Max Gain) or no interest if amount is parked in OD account. If you are parking this 20L Rs. amount into Max Gain, you are keeping your liquidity option open so that in future you may use this money for some other purpose. if you pay it directly to builder, you can not use this money again.

thanks Ashal for your reply but with 0% interest will the loan continue for 20 years or will it be closed earlier? also if I put the same 20L in a seperate FD for 20 years will It earn more at the end if the EMIs are taken care of ? Just wanted to do a comparison?

Couple of things are wrong in this video
Drawing power or the limit is the total amount sanctioned for you
Book balance is the amount on which you are paying interest and that is the amount which you have to pay to close the account, if you want to close it as of today.
Please go thro your video. you completely mix up these terms

Dear Jaykal, Drawing Power keeps reducing with payment of loan through EMIs. So yes at the start of loan, DP or limit is the total loan amount sanctioned to the borrower. Yes Book balance is the amount one needs to pay to bank to close the loan and it’s amount on which interest is paid.

Dear Ashal – I contacted you to get the SBI MAXGAIN excel at this site and you advised me to contact you at your personal blog. Appreciate if that could be shared.

can you please provide me the excel for sbi max gain home loan calculator…shareesh.mp@gmail.com

Please check for comment made by Sreekant Bilurkar, He has created a google sheet for SBI Max Gain. Please download it and use for your own case.

Thanks

Ashal

Dear Ashal,

Thanks a lot for creating awareness and explaing the max gain concept.

Can you please tell me how the principal component is calculated for maxgain.

If you share a daily reducing (not the monthly one) excel sheet explain how the OD account works, if would be really helpful.

Regards,

Pratik.

Dear Pratik, have checked the google sheet prepared and shared by dear Srikant Billurkar in one of the comment in August 2013 in main SBI max gain article in the blog?

Thanks

Dear Ashal,

Thanks a lot for your reply.

I found the required excel sheet.

If possible, kindly send me your mail id so I can share my maxgain transactions.

I need your assistance in clearing my doubts.

Regards,

Pratik.

Dear Pratik, Please check your email.

Thanks

Ashal

Dear Ashal,

I have replied to your mail regarding the queries.

Hope it’s not too exhaustive!

Regards,

Pratik.

Hi Ashal,

I see that monthly SIP’s vs quarterly SIP’s almost have same gains over 4-5 years. So with this data wouldnt it be prudent to do a quarterly SIP from Max gain account to benefit more from the extra cash atleast for 2 months in the quarter?

Dear Kiran, opting mly or qtly SIP is your choice based upon your research and yes, you can do it.

Thanks

Ashal

Can you pls email me the Amortization schedule under max gain in excel to my email id. Also whether it is possible to workout the schedule using option of FULL EMI from first disbursement for CLP Loan?

Dear Manish, the SBI Max Gain itself follows basic loan amortization schedule as available in your excel template.

Thanks

Ashal

Hi Ashal,

Thanks for the informative videos.

I have availed of a max-gain loan for construction of house. The loan has only been partially disbursed but the EMI’s have started.

After the first EMI was taken via ECS I was expecting the drawing power and available balance to only reduce as per amortization schedule but it has been reduced by an amount close to the EMI paid. Do you know why this happened? Is there a change in the way MAX Gain work recently?

Any help appreciated.

Thanks,

Srikar

Dear Sriikar, relax. SBI’s software does has a problem for first month. From 2nd month, your drawing power reduction ‘ll be normal.

Thanks

Ashal

Dear sir,

where /how to see my remaining tenure period of home loan in my max gain account.

Dear Sachin, if your loan was for 240 months and already 25 months are over, your remaining term is 215 months. As simple as that.

Thanks

Ashal

Hi Ashal,

I have a query. I have sent/ attached screenshot of my max gain account to your email.

I have taken a Home loan of 40 Lakhs in August 2014 out of which 3510901 has already been disbursed( 2 installments from october 2014). and I had deposited 1 lakhs in OD to

be used for reducing the loan outgoing.my EMI is 41,100 and I will get possesion hopefully in march 2015 and had asked the bank to start EMI from day 1 but I am not sure if they have started it from the attached statement. I do see one debit of 41,100 on 10th Nov but I can see 2 debit interest entries of 10470 and 27288. what are they for if my EMI is getting deducted? How is that interest charged and at what rate? can you please help me understand my statement.

Thanks and best Regards,

Peeyush

Dear Peeyush, please do tell me, what’s your Drawing Power now?

Thanks

Ashal

Hi Ashal,

Thanks for your reply. as per the statement which I have sent in your email I am writing the gist below.

the drawing power is 40,00,000

book balance is 34,06,997

the available balance is 5,93,003

limit is 40,00,000

uncleared balance is 0

lien amount is 0 -????what is lien amount?

following are all transactions

30 Nov14- debit interest 27,288

11 Nov14 Transfer to builder- 3,73,336

10th Nov autodebit from my account to max gain -41,100

2 Nov 14 I deposited from my account to max gain-1,00,000

30 Oct14- debit interest 10,470

29 Oct 14-by clearing credit -562- Didnt get that???

20 Oct14 Transfer to builder-3137565

Thanks Peeyush

Dear Peeyush, please contact SBI to get correction in Drawing Power.

Thanks

Ashal

Hi Ashal, Your video has been very helpful. I have SBI Maxgain on CLP plan and I am paying interest only. I have some cashflow to start EMI and want to reduce the interest amount. Two options which I have:

1. Converting pre-EMI to full EMI option (as you suggested). Hence start paying the EMIs every month.

2. Keeping pre-EMI option but keep depositing EMI into the loan account by myself.

I feel both options are almost same. In both cases, I can NOT withdraw the deposited amount and interest charged in both cases will remain almost the same.

However in option 2, the amount deposited will become ‘Available Balance’ after possession and I will be able to withdraw that. Hence option 2 looks better.

Am I thinking correctly Or missing any point?

Regards,

Varun

PS: posted the same query on your Youtube video.

Dear Varun, yes your understanding for option 2 is correct. You may opt it.

Thanks

Ashal

Nice video but somehow my calculation is not tallying with current status of my account

This is the status as on 16th september

Book Balance : -28,55,141

Available Balance : 4,05,479

Limit : 32,60,620

Drawing Power:32,60,620

Uncleared Balance:0

Rate of interest:10.1%

Loan amount is for 32,68,000

Account Statement

Debit Credit

18 Aug 28,76,000 – First disbursal

31 Aug 11,141

15 Sep 0 32000 – First EMI

I could not understand how Available balance is 4,05,479. How the 32000 is separated into principal and interest component here as full disbursal has

not happened yet.Could you help ?

Dear Vijay, please send me your account statement in excel format on my personal mail id.

Thanks

Ashal

Sent the mail to your mail id.Thank you very much.

Mail received.

Thanks

Ashal

Hi,

Could you please see if you can give us comparison between tranch based emi repayment and max gain? Do you feel tranch based emi is good when the project is CLP? Also in max gain, there is no way the surplus adjusted with number of emis? Please let me know.

Thanks,

Vijay

Dear Vijay,what type of analysis you need in Tranch based EMIs?

Thanks

Ashal

Hi Ashal

Thanks for a very informative video.

I have a query suppose someone has upfront funds to give to a builder lets say 20Lakhs so is it advisable to park this money by opening a sbi max gain account for 20 years let say so if need be the money can be used whenever required.. if yes how can one benefit from same as in this case it will be 0% interest if we do not withdraw any money. will bank keep putting back the interest portion every month for 20 years or it will ask you to close the account? I am a bit confused

Peeyush

Dear Peeyush, in overdraft account, you do not earn any interest from bank. Either you pay interest on your withdrawn amount (homeloan in case of Max Gain) or no interest if amount is parked in OD account. If you are parking this 20L Rs. amount into Max Gain, you are keeping your liquidity option open so that in future you may use this money for some other purpose. if you pay it directly to builder, you can not use this money again.

Thanks

Ashal

thanks Ashal for your reply but with 0% interest will the loan continue for 20 years or will it be closed earlier? also if I put the same 20L in a seperate FD for 20 years will It earn more at the end if the EMIs are taken care of ? Just wanted to do a comparison?

Dear Peeyush, if you put the money in FD, you ‘ll earn more in FD as interest.

The loan ‘ll run for full 20Y with zero interest payout.

Thanks

Ashal

Couple of things are wrong in this video

Drawing power or the limit is the total amount sanctioned for you

Book balance is the amount on which you are paying interest and that is the amount which you have to pay to close the account, if you want to close it as of today.

Please go thro your video. you completely mix up these terms

Dear Jaykal, Drawing Power keeps reducing with payment of loan through EMIs. So yes at the start of loan, DP or limit is the total loan amount sanctioned to the borrower. Yes Book balance is the amount one needs to pay to bank to close the loan and it’s amount on which interest is paid.

Thanks

Ashal

Very well explained . I also watched the 1st part . All points are covered .

Thanks Raj.

Dear Ashal – I contacted you to get the SBI MAXGAIN excel at this site and you advised me to contact you at your personal blog. Appreciate if that could be shared.

http://www.jagoinvestor.com/2013/05/sbi-maxgain-home-loan-review.html#comment-142988

Dear Sriram, please check your personal gmail account.

Thanks

Excellent video. All points explained quite well. Thanks a lot.

Dear Ajay, thanks for your praising words. Please keep posting your queries, comments, views.

Thanks

Ashal

The Video says its private. cant watch it?

Dear Radheesh, settings changed. Please check and confirm that it’s available to you now.

Thanks

Ashal