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SBI Maxgain Home Loan- A smart Choice


Buying a home by taking a loan is most important decision for every home buyer. If you want to close your home loan as early as possible, State bank of India provides you the best scheme Viz. SBI Maxgain home loan.

This is now-a-days very favorable scheme in home buyers as it helps to reduce the rate of interest on amount of loan as well as it helps to close loan at minimum period of time. This blog will help you to know more about SBI Maxgain home loan scheme.

What is SBI Maxgain Home Loan?

State Bank of India’s Maxgain Home Loan Scheme is one of the attractive housing loan. It is a home saver loan scheme in which SBI allow to open an account which is linked to your primary loan account or any other account. Any amount in this linked amount works to reduce your overall outstanding loan balance and indirectly lower down burden of rate of interest.

This loan is sanctioned as an overdraft to operate home loan account in which bank also provides cheque book and net banking facility for the purpose.

Maxgain home loan scheme is specially design to get advantage of overdraft facility. The primary aim of this scheme is customizing for customers wishing to choose for an overdraft facility for their housing loans. Another advantage of this scheme is, you can park your surplus funds in the loan account, which effectively earned the interest on the same rate it will reduce your interest cost.

Loan Amount:

Minimum – From Rs. 5 Lacs
Maximum – No Cap

Interest Rate for Maxgain:

Interest rate under this scheme is somewhat higher than interest rate applicable on regular home loan. Currently, SBI offers a home loan of 9.95% rate of interest and in Maxgain you have to pay 0.25% extra interest.

Difference between SBI Maxgain Home Loan and Regular Home Loan:

SBI Maxgain Home Loan can be sanctioned as an overdraft with a limit that is equal to the approved loan amount. In regular home loan, principal and Interest components are calculated as per the original amortization table. However, in Maxgain the drawing power is reduced by the principal amount of the EMI each month.

In regular home loan, it is closed when the outstanding principal amount is zero and in Maxgain you can approach the bank to close your home loan when the Book Balance reaches zero.

Benefits of SBI Maxgain Home Loan Scheme:

  1. Overdraft Facility:

As mentioned above, Maxgain home loan’s primary aim is to provide overdraft facility to borrowers. An overdraft facility is a credit line provided to individuals against their assets. You can think of it as being similar to a credit card with a limit but without the interest-free period.

  1. Reduce Cost of Interest:

By parking your extras in loan account you can earned the interest on same rate which will reduce cost of interest. If surplus funds are parked in the over draft account, it saves interest surpass on the home loan. This will helps you close the loan faster.

  1. Liquidity:

If you parked surplus fund in loan account that money goes to reduce the outstanding principal amount. Any surplus funds parked in Maxgain home loan account can be withdrawn anytime. So Maxgain Home Loan scheme provides you liquidity in you accounts.

If you want to reduce your monthly financial burden of home loan then SBI Maxgain Home Loan is a very good option for you.


Category : Flatons Advisors Blog



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