How SBI Maxgain home loan scheme helps you to reduce interest rate burden?

SBI Maxgain home loan schemeHow SBI Maxgain home loan scheme helps you to reduce interest rate burden?

SBI Maxgain home loan scheme is a unique scheme offered by State Bank of India, which works like an overdraft in your bank account. You can consider such scheme and park your liquid finances and get benefit from home loan interest. This article is based on request from Abhay on suggest a topic. In this article, I would provide the features of the SBI Maxgain scheme, its negative points by considering this SBI Max gain home loan scheme.

How does SBI Maxgain home loan Scheme works?

SBI Maxgain scheme is like any other home loan scheme, but provides an Overdraft facility to withdraw money like what you do in Current Account. The bank provides cheque book and internet banking facility separately for this Maxgain home loan scheme account. You can withdraw the amount indicated as “available balance” in your Maxgain home loan account any time without any prior intimation to the bank.

Also Read: Which home loan to prefer, fixed or floating interest rates?

Positives of SBI Maxgain Home loan Scheme

  • Overdraft facility for withdrawing money anytime.
  • You can park your surplus money or liquid finances into this Maxgain home loan account and get an interest reduction on your home loan.
  • Withdraw surplus money anytime without any prior intimation to the bank
  • No processing fees or application required to withdraw money. This would save time and effort.
  • No extra home loan interest rates apply for this scheme except that if your loan exceeds Rs 1 Crore, you need to pay a premium of Rs 0.25%.
  • You can also use this as an alternative to personal loans as this would offer low interest rate of 10%, whereas personal loan comes with 14% to 18% interest rates.

Negative points in SBI Maxgain home loan scheme

  • You cannot withdraw surplus funds in case your of under construction property during such period.
  • Like any other home loan scheme, in case of plot you need to construct the house within 3 years, else you would be charged with a higher rate of interest.
  • If there is overdraft facility, you would get tempted to withdraw money for sundry expenses and you cannot reduce your savings.

Some of the FAQ’s on SBI Max gain home loan scheme

1) Are there are separate processing fees charged for this scheme?

Currently SBI charges same processing fees for SBI Maxgain as well as for regular home loan schemes.

2) Are there are separate Interest rates being charged for this scheme?

Currently SBI charges the same interest for SBI Maxgain as well as for regular home loan schemes. Currently the home loan interest is 10.10%

3) How much interest would I earn on my surplus fund deposited in the SBI Maxgain account?

Though this is a SB / Current account, you would not get any separate interest on this. The surplus funds deposited would be off-set with your home loan amount and you would not be charged with any interest on home loan to that extent

4) My SBI Maxgain home loan and surplus deposited are same, whether my account would get closed?

No. Your account would be still active. E.g. if you have a home loan of Rs 25 Lakhs and you have deposited surplus money of  Rs 25 lakhs surplus money into it. You would not be charged with any home loan interest. Your overdraft amount would be increased to that extent.

5) Are there any special benefits for women applicants?

Yes, women applicants would get a rebate of 0.05%. Currently SBI home loan interest rates are 10.10% and women applicants can get it at 10.05% interest rates. If your wife is co-applicant, you can get such schemes with this rebate as joint owners.

6) Can we make regular transactions like investment in mutual funds or payment of utility bills?

Since this is like a regular SB account, you can do all transactions what you generally do in SB account. However ensure that you pay your bills within the OD amount, else they would get bounced.

7) What is withdrawing power?

Withdrawing power in the SBI Maxgain scheme is actual outstanding principal amount

Also Read: Cheapest and Best home loan interest rates in India

8) What is available balance in the SBI Maxgain scheme

This is the amount which you can withdraw as an overdraft facility from the SBI Maxgain account

9) How can I transfer from regular home loan to SBI Maxgain home loan?

You can contact SBI bank for switching this. But before doing that, do a check on the cost of such conversion which includes conversion charges, penalties and net benefit what you would get with such conversion.

10) Can I do pre-closure of this account?

Yes you can do that, however standard rules for regular home loan schemes of SBI would apply here. You should know the guidelines for closure and take the call.

Conclusion: While there are several home loan schemes being offered, I felt SBI home loans comes with several benefits. SBI Maxgain scheme is one such unique home loan scheme which is good for those who want to take benefit from overdraft by parking their surplus funds into it. You can also use this as alternative to personal loan too. I felt this is one of the way to save money

If you enjoyed this article, share it with your friends and colleagues on  Facebook and Twitter.

SBI Maxgain home loan scheme

Suresh KP


  1. Hi Suresh,

    My Homeloan was sanctioned in March last week 2017 and we received DD in second week of April. Then Rate of Interest was 8.75 for Women applicant for Loan amount more than 30 lakhs for Floating Interest(Loan Tenure 20 Years). Today August 2nd saw that RBI cuts repo rate by 25 Basis points to 6%. Can i avail or get any lower Interest benefit?? Also guide us on How we get to know that Pradhan Mantri Aawas Yojana linked to my SBI Maxgain , to avail the benefits if any??


    Ramakrishna Zalaki


  2. Hi,

    I have taken maxgain option while taking loand, now I would like to close my loan in one go

    Is there any hidden rule for replayment, or should i directly go and close loan and get my property papers back

    pls suggest



Leave a Reply

Your email address will not be published. Required fields are marked *