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When it comes to taking out a home loan, most borrowers find themselves balancing two key considerations: minimizing interest costs and maintaining ready access to funds. The State Bank of India (SBI) offers a solution specifically designed for this need— Maxgain Home Loan. This unique overdraft facility empowers you to reduce your interest burden while keeping surplus funds accessible for emergencies, investments, or big-ticket purchases.
What is SBI Maxgain Home Loan?
SBI offers Maxgain as a specialized home loan with an overdraft facility, using the sanctioned loan amount as the overdraft limit. Although borrowers pay monthly EMIs like a regular home loan, the principal portion of each EMI steadily reduces the available overdraft limit (Drawing Power), ensuring that the loan fully amortizes by the end of the tenure.
Meanwhile, the interest portion of the EMI covers the ongoing interest cost. This setup allows borrowers to park surplus funds into the linked account, effectively lowering the outstanding principal and saving on interest costs, with the flexibility to withdraw these surplus amounts as needed.
Suggested Read: SBI Home Loan
SBI Maxgain Home Loan Interest Rate 2025
Interest rates for the SBI Maxgain Home Loan in 2025 are shaped by market conditions, regulatory mandates, and the bank’s internal policies.
| Home Loan Type | Interest Rates |
|---|---|
| Home Loan Maxgain (OD) | 8.70% p.a. – 9.85% |
Suggested Read: How Can an Overdraft Facility Reduce Home Loan Burden?
SBI Maxgain (Overdraft Facility) Calculator
A precise calculation tool is essential for evaluating your financial commitments under an overdraft-linked loan.
Flexible, Smart, and Simple—Choose SBI MaxGain for Your Home Loan Needs.
SBI Maxgain Home Loan Eligibility Criteria
Before applying for the SBI Maxgain Home Loan, it is important to confirm you meet the age, income, and credit requirements.
| Criteria | Details |
|---|---|
| Minimum Age | 18 years at the time of loan sanction |
| Maximum Age | 70 years by loan repayment |
| Considerations | Income, repayment capacity, assets, liabilities, and project cost |
Suggested Read: A Guide to Selecting the Right Home Loan
SBI Maxgain Home Loan Processing Fees
SBI takes processing fees to cover the cost of reviewing your documents and assessing your loan application.
| Fees Category | Charges |
|---|---|
| Processing Fees | 0.35% of the loan amount + GST Minimum: c2,000 Maximum: ₹10,000 |
SBI Maxgain Home Loan Amount
SBI offers home loans that cater to various financial situations. From first-time buyers needing a smaller loan to those looking to invest in premium real estate, knowing the minimum and maximum amounts available can simplify your search.
| Minimum Amount | Maximum Amount |
|---|---|
| ₹20 Lakh | NA |
SBI Maxgain Home Loan Features and Benefits
- Loan sanctioned as an overdraft with interest charged only on the amount withdrawn.
- No extra charges to avail this loan.
- Processing fee remains the same as a regular home loan.
- Cheque book, debit card, and net banking facilities are provided.
- Potential for higher savings (1–3% more than FDs), and if surplus exceeds the loan amount, earn 4% interest.
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SBI Maxgain Vs Regular Home Loan
Selecting between an overdraft-based loan and a traditional term loan significantly impacts long-term financial obligations. This comparison covers differences in interest calculation, repayment flexibility, and overall benefits.
| Aspect | SBI MaxGain | Regular Home Loan |
|---|---|---|
| Loan Structure | Overdraft facility allowing surplus funds to reduce principal | Traditional term loan repaid via fixed EMIs |
| Interest Rates | Typically 0.25%–1% higher than standard home loans | Generally lower interest rates |
| Liquidity & Flexibility | Borrowers can park and withdraw surplus funds anytime, reducing interest outflow | Lump sum disbursement; surplus funds not easily accessible |
| Minimum Loan Amount | Minimum ticket size of ₹20 lakhs; no maximum limit | Lower minimum limits may apply, depending on the bank’s policies |
| Prepayment Options | Surplus deposits do not qualify as formal prepayments for tax benefits under sections 80C/24B | Allows straightforward prepayments, often with tax benefits on principal repayment under 80C and 24B |
Conclusion
Buying a home is a big step. Getting a home loan can be hard, but we make it easy. Choosing Credit Dharma for your home loan simplifies this process. We offer expert advice and personalized assistance to make everything hassle-free. You’ll receive timely updates on your loan application and disbursement progress.
From the initial application to the final disbursement, we provide comprehensive support. Enjoy clear and honest communication at every stage, with no hidden surprises.
Frequently Asked Questions
Interest is calculated on the difference between the loan account balance and the amount deposited in the overdraft (Excess) account. This reduces the interest outgo based on the surplus funds parked in the Excess account.
Yes, funds in the Excess account can be withdrawn anytime, subject to specific conditions. For example, in SBI Maxgain, you cannot withdraw funds until possession of the property is received.
No, funds in the Excess account do not earn interest. However, the interest saved on the home loan acts as an effective return, which is typically higher than what a savings account or fixed deposit would yield.
Yes, it is possible to convert an SBI MaxGain Home Loan to a regular term loan. You would need to contact SBI for the specific procedure and any applicable terms and conditions.
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