When we purchase a house, we need to pay EMI every month. To reduce the interest rate or pay off the loan at times we need to make a prepayment to close the home loan. So, to understand how to close SBI home loan faster, you need to follow the prepayment procedure. While doing the prepayment you have to pay off the principal and the interest altogether. This is how you will be able to reduce your EMI and home loan tenure both at the same time. Now, we should learn how to close home loan in SBI after prepayment to obtain the encumbrance certificate and to prove that we have paid off our debt.
To close the home loan you need to go to the bank and ask the bank authorities to close your home loan account. You need to write an application and you will be able to close your home loan account.
You can also follow the online process as well which is also easy to follow.
How to close SBI home loan online?
You need to visit the official SBI website.
Tap on requests> Closure of Loan A/C.
You will be redirected to a Closure of loan A/C page.
Choose the loan account you want to close.
Choose the transaction account that will be debited to close the loan.
Hit on Submit.
And this is the process of how to close SBI home loan account online.
If you are wondering how to close SBI Maxgain home loan you need to pay your debt and you need to take the important documents with you to the bank. You need a notarized POA to close the Maxgain account. You can prepare a POA in favour of your friend or relative to close the SBI Maxgain home loan account. If you are an NRI not present in India, the Embassy of India or consulate of the country you are staying in will do the notarization or attestation.
For more information on how to close SBI Maxgain home loan read:
How To Close SBI Maxgain Home Loan?Get home loan at lowest interest rate from NoBroker
Read more:
What is prepayment of home loan?What to do after closing home loan?
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Since Rohan has mentioned the steps to close the SBI home loan account online, I will tell you about the offline process.
SBI Home Loan Closure Process
If you’ve paid the last EMI along with all the outstanding dues:
Write a letter to your bank and ask them to give back the original documents that you submitted when you took the loan.
If you require other documents, such as invoice copies, etc. you need to mention them in your letter.
You’ll generally get a reply from the bank within seven business days
The bank will give back your original documents as well as issue a closure letter specifying that no outstanding amount is left to be paid
The bank will also provide you a NOC mentioning that it’s no longer entitled to your property
If your bank has put a lien on your property, you’ll have to go to the Registrar’s Office along with the bank’s representative and NOC to get it terminated. If the bank hasn’t put a lien on your property, it will give back the title deeds.
Write an application to your bank regarding the foreclosure of your home loan account.
After that, the bank will tell you about the outstanding amount after calculating them. You’ll be required to pay the amount either by RTGS/NEFT or cheque.
After making all the payments, the bank will give back your original documents in a couple of days.
The bank will also give you an NDA mentioning that you’ve paid all the outstanding dues to the bank.
If your bank has put a lien on your property, you’ll have to go to the Registrar’s Office along with the bank’s representative and NOC to get it terminated.
SBI Home Loan Pre Closure Charges:
Loans on floating and fixed rates of interest:
No pre-closure/pre-payment penalty will be levied on housing loans irrespective of the period for which the home loan account has run or the source of funds.
After closing the home loan account, you are required to complete some formalities. I’ll tell you about the things you should keep in mind while closing your home loan account.
Collect your original documents like the title deed, loan agreement, sale deed, power of attorney, possession letter, payment receipts, etc.
Get the ‘No Dues’ Certificate (NDC) as it indicates that you’ve paid all the EMIs to the lender and there are no dues from your end.
I am aware that most people use home loans to be one step closer to acquire their dream home. I think you will truly enjoy owning a home once the mortgage has been paid off in full. It is the final step towards acquiring your dream home. Hence, it is critical to understand SBI home loan closure procedure. But first, make sure you have paid off all outstanding loan balances, including principal and interest.
SBI Home Loan Closing Procedure
Rohan Dutta has already mentioned the online process that you can follow to close your home loan via https://www.onlinesbi.sbi/. Let’s learn how can you prepay your home loan below:
Visit the internet banking portal of SBI.
Sign in to your account.
Next, select "Prepayment" from the "Home Loan" menu.
Select the account you wish to use to make the payment.
Review the information provided and validate the transaction.
Once the transaction is finished, you will get a confirmation message.
As far as I know about SBI home loan closure process online is that a home loan account is only deemed closed upon the lender's official declaration. The online process of closing a home loan account in SBI has already been explained. So, I will tell you about the offline process in my answer, here.
What is the Home Loan Closure Process SBI?
If you have settled all outstanding debts and the last EMI:
Visit your nearest SBI Bank branch and request the branch manager to close your home loan account.
Post that you will be required to clear all outstanding dues (if any).
If all dues are clear, the bank will give you a letter stating that your account has been closed.
Then you will have to submit a letter to the bank requesting the return of the original documentation you provided when applying for the loan.
The bank will typically respond to you within seven business days.
Along with returning your original documentation, the lender will issue you an NOC. Additionally, a closure letter stating that there is no remaining balance to be paid will be sent.
You will need to go to the Registrar's Office with the NOC and the bank representative if the bank has placed a lien on your property in order to have it removed.
Last but not least, the bank will promptly restore the title deeds provided it has not placed a lien on your property.
How to Foreclose SBI Home Loan?
To foreclose an SBI home loan, you can follow the offline steps below.
Send a letter to your lender requesting that your house loan account be foreclosed upon. Include your home loan account number, a copy of your proof of address, and your PAN card.
The bank will calculate the outstanding amount and notify you of it after receiving your application. The payment options available to you are check or NEFT/RTGS.
There are no prepayment penalties if you are foreclosing on a loan with a floating rate. On the other hand, if you are foreclosing on a fixed-rate loan, your bank may charge you a nominal foreclosure fee.
The bank will return your original documents to you within a few days of receiving all payments.
Additionally, an NDA certifying that you have settled all outstanding bank debts will be sent to you.
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How to Close SBI Home Loan?
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January 6, 2022
2022-01-06T16:59:16+00:00 2024-03-07T11:00:58+00:00Comment
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