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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—its 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.
Save ₹10 Lakhs and Reduce Your EMI Stress with SBI Maxgain!
What is SBI Maxgain?
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.
Eligibility Criteria
The eligibility for the SBI MaxGain Home Loan is similar to regular SBI home loans.
| 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 |
SBI Maxgain (Overdraft Facility) Calculator
SBI Maxgain Home Loan Interest Rate 2025
| Home Loan Type | Interest Rates |
|---|---|
| Home Loan Maxgain (OD) | 8.70% p.a. – 9.85% |
SBI Home Loan Features and Benefits
The SBI MaxGain Home Loan functions as an overdraft facility, providing a credit line against the loan amount. The bank charges interest only on the amount utilized, not on the entire loan amount.
| Features | Description |
|---|---|
| Overdraft Facility | Functions as a credit line with interest on the used amount |
| No Extra Charges | No additional fees for availing the loan |
| Processing Fee | Same as a regular home loan |
| Banking Facilities | Cheque book, debit card, and net banking |
| Minimum Loan Amount | ₹20 lakhs |
| Maximum Loan Amount | No limit |
| Savings on Interest | 1-3% higher savings compared to FDs |
| Additional Earnings | 4% interest if parked amount exceeds loan amount |
Advantages of SBI Maxgain Home Loan
- Interest is charged only on the amount withdrawn, helping you save on interest costs.
- No additional charges are required to avail of this loan.
- The processing fee is the same as a regular home loan, ensuring no extra costs.
- Provides convenient access through cheque book, debit card, and net banking facilities.
- Minimum loan amount starts at Rs. 20 lakhs, with no maximum limit, offering flexibility for borrowers.
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SBI Maxgain Vs Regular Home Loan
| Feature | SBI Maxgain Home Loan | Regular Home Loan |
|---|---|---|
| Structure | Operates as an overdraft account linked to the home loan. | Standard home loan with fixed EMI payments. |
| Interest Calculation | Interest is calculated on the outstanding principal minus the balance in the Maxgain account. | Interest is calculated on the entire outstanding principal, irrespective of surplus funds. |
| Prepayment Handling | Surplus funds deposited reduce the effective principal and interest costs but remain accessible. | Prepaid amounts reduce the principal, but funds are locked and cannot be accessed later. |
| Liquidity | Complete liquidity; surplus funds can be withdrawn anytime for emergencies or expenses. | Limited liquidity; funds used for prepayment are permanently tied up in the loan. |
| Flexibility | Borrowers can deposit and withdraw funds as needed without affecting the loan structure. | No flexibility; payments are fixed, and prepayments are treated as permanent contributions. |
| Cost of Loan | Slightly higher interest rate compared to regular home loans due to the overdraft feature. | Lower interest rate than Maxgain loans. |
| Eligibility | May have stricter eligibility criteria, including higher income or work experience requirements. | Typically easier eligibility criteria than Maxgain loans. |
| Who Should Choose It? | Ideal for borrowers with irregular cash flows or those needing liquidity for emergencies. | Suitable for borrowers with stable incomes and no need for extra liquidity. |
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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