SBI Max gain. Review on Taking a Home Loan

I want to share my experience and knowledge about SBI Maxgain.

Few  points which I want to convey as these points make context for my  explanation about Maxgain Product.(So my comments are based   on my personal case. It may differentiate in some cases.)

This is the first time I have taken any home loan.

This loan was taken for ready to occupy flat.(Directly from Builder hence all amount was disbursed in one go)

I came to know about SBI Maxgain from Google search.

My  case was processed in Specialised Housing Finance Branch(not any PBB)  (Yes it makes a huge difference in Loan processing timeliness)

Loan Application:

(Please let me know if you have any query on any point)

1.  Just go to SHFB and ask for Form, discuss your case with Geetha Madam  (she is very cooperative, even after approval and disbursement, if you  have any query/issue she will help you out).

(*I personally recommend to go to Specialised Housing Finance Branch, if  it is available in your city,  no matter how far from your home, it  will be worth, avoid any nearest SBI Branch, because if you will apply  at PBB, they will not properly check you file and directly send it to  RACPC center then in case of any missing documents or information they  will contact Branch which further will contact you, this whole process  consumes a lot of time and you will get frustrated, whereas in SHFB you  file will be processed within those Four walls their SLA is 5 working  days!)

1. Ask for Home Loan  Application form. At the end of the form there will be checklist, Go  through that checklist and If you have any query ask on the spot.(  Please note you will have to produce all the documents listed in  checklist, If you are not able to you will have to give a proper  justification for that).

   
   




2. Ask for SBI Panel Lawyer and Evaluator, she will provide you the contact numbers.

   
   

4.  Contact SBI Panel Lawyer and Evaluator, fix an appointment with them  ask them when they can give reports(they will take max 4-5 working  days)(their official fee to this is Rs 1500 each, dont pay more that  this)

1. Collect both the reports, Fill Application Form, Collect  all the documents as listed in checklist(with xerox copy of each  document)  and visit the branch again.

   
   




2. Ask Geetha Ma’m to  check all the documents, she will check and if everything is fine, she  will start processing on your file. She is bound to process your file  within 5 working days.

   
   




3. Withing 5 working days, you will get  confirmation that your loan has been sanctioned.(Processing will begin  only when your documents are complete, hence minimal chances of  rejection) [At this Point your Loan A/c will be created and A/c No. will be provided to you, and if you have opted to link it out with your Savings A/c then you can check Loan A/c with your Savings A/c, yes under same Login ID, and at this time all Balances except'Limit'(which is your sanctioned limit) and'Drawing Power' in Loan A/c will be displayed as'0')

   
   




4. Ask for disbursement as and when you want.

   
   

(Once the Loan is disbursed, Amount disbursed will be displayed under'Book Balance' in your Loan A/c) and from that day(as your DDs are issued) your Interest Starts!)

1. If you have a savings A/c with SBI( Any Branch) they will link Maxgain  A/c with that Account. Also you can opt for EMI as standing instruction  from that savings A/c

   
   




2. After Registration of Home/Flat, bank  will take the Absolute Sale Deed, and after that they will give you the  transaction rights of your Loan A/c i.e. you can deposit and withdraw  from your A/c. Sanctioned limit will be you Sanctioned Loan Amount.

   
   

(At this point you will get the Transaction Rights on your Loan A/c, and your are ready to go on saving spree on your Loan A/c)

1. You can operate your account like your normal A/c i.e. deposit, withdrawal, Cheque issuing, NEFT, RTGS transactions etc.

12.  If you have linked your Loan A/c with your Savings A/c then you can  instantly transfer amount from Savings to Loan A/c and vice versa.

1. You can get your Savings A/c Debit Card linked with Loan A/c and with same Debit card you can operate your Loan A/c also.!

How it works(and makes a difference than any other Loan A/c):

Just  for an example and to make it easier to understand, I am assuming that  you have got Loan sanctioned of 25 Lacs, for 20 years with annual ROI as  10% under SBI Maxgain.

Imp Point, your EMI:

• Makes more sense just in case if you are going to operate your account as any other Loan A/c

-  Just to provide you certificate of Principal and Interest you paid on  you loan A/c in a particular financial year(if you are going to operate  as SBI Maxgain A/c with full facilities that it provides)

• Just to ensure that you are paying your Payments Regularly.

Bank  will ask to give you the date of EMI and you can fix any(yes any) and  Bank will fix Standing instruction on that date And also will ask to fix  EMI amount if you want to pay more than the minimum as per your Loan  Amount i.e. if your EMI as per your Loan Amount comes as Rs.24549.00 you  can pay more also like 25000 or 26000 or as much as you want that will  reduce your Loan Tenure depending how much you want to pay more.

If  you are going to place your Savings your EMI does not matter much in  Maxgain(But you will have to fix a date and amount for EMI)

Irrespective  of Date of EMI on the last Day of every month, your Maxgain A/c will be  debited with Interest Amount(that will be calculated on the basis that  how much you borrowed from Bank in that particular month, on the basis  of daily reducing balance)

Maxgain A/c theory is very simple, If your Loan of  25 Lac was disbursed(Just assume) on 1st March and you got or you have  savings of Rs. 15000 and on 7th March you deposited the same in Loan A/c  (ie on 7th) after that till 31st March you have not withdrawn or  deposited any amount, then on 31st your account will be debited with  Interest for that month(total 31 Days), from 1st to 6th Amount you  borrowed was 25 Lac and you 7th March you deposited Rs. 15000 hence from  7th to 31st March you borrowed 24 Lac 85 thousand, so on an average you  borrowed Rs 24, 87, 903 per day in March.  Formula:[(25000006+248500025)/31]

So Interest Charged for that  month will be Rs 21130.14 which otherwise would have been Rs. 21232.88  i.e. you saved Rs. 102.73 by just depositing your savings of Rs 15, 000  in your Loan A/c, other way round you got interest of 10% per annum on  Rs. 15, 000 which in normal savings A/c is just 4%.

If rather  than Rs 15000, you would have deposited Rs 1, 50, 000 on 7th March(and,  just assuming, withdrawn ed same on or after 1st April) you would have  saved Rs.1027.39! Just by putting your savings in Loan A/c, with  flexibility to withdraw it any time!

Not sure how much useful it will be for you.

I will update this review with in depth details wherever required.

IF  YOU FOUND IT USEFUL PLEASE PROVIDE YOUR RATING. THANKS