How to Close SBI Home Loan?

The home loan closure procedure SBI involves several steps to ensure a smooth and hassle-free process. Before initiating closure, ensure the entire loan amount, including the principal, interest, and any prepayment charges, is fully paid. You can verify this by checking your loan account statement online or visiting the bank branch.

What is the SBI Home Loan Closing Procedure?

I have shared an elaborate process to close the home loan in SBI,

1. Once the loan is fully repaid, submit a written request to SBI for a No Dues Certificate or Loan Closure Certificate. This document confirms that all dues are cleared and the loan is officially closed.
2. Upon verification, SBI will return the original property documents submitted at the time of loan disbursal. Carefully check the documents to ensure they are complete, untampered, and in good condition.
3. If the bank had marked a lien on your property, request a lien removal. A lien is a legal claim the bank places on your property until the loan is repaid. You may need to visit the registrar\'s office with a No Dues Certificate for this process.
4. Once the loan is closed, ensure SBI updates your loan closure status with credit bureaus like CIBIL. This step is critical for maintaining a good credit score.
5. Obtain a loan account closure statement or acknowledgment from the bank. This document serves as proof that your loan account is officially closed. 

I hope this helps you understand how to close SBI home loan. Avail Home Loan at Lowest Interest Rates & Maximum Tenure via NoBroker Read moreHow to Close SBI Maxgain Home Loan Account?

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:

1. Visit your nearest SBI Bank branch and request the branch manager to close your home loan account.
2. Post that you will be required to clear all outstanding dues (if any).
3. If all dues are clear, the bank will give you a letter stating that your account has been closed.
4. 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.
5. The bank will typically respond to you within seven business days.
6. 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.
7. 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.
8. 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.

1. 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.
2. 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.
3. 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.
4. The bank will return your original documents to you within a few days of receiving all payments.
5. Additionally, an NDA certifying that you have settled all outstanding bank debts will be sent to you.

Now you know the SBI home loan closure process online as well the offline process. Avail Doorstep Assistance For Your Home Loan With NoBroker Home Loan Service. Read More: How to Close SBI Maxgain Home Loan Account? 

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.

Upon making the payment, ask the bank for a NOC (No Objection Certificate), which will serve as evidence that you have fully paid the debt. The original property documents will then be returned to you by the bank once they have approved the termination of your loan. I hope you got an idea of how to close loan account in SBI. 

Get a home loan at the lowest interest via NoBroker

.

Calculate your EMI on a home loan via the NoBroker EMI calculator

.

Read more -

How to Close SBI Maxgain Home Loan Account?

How to Calculate Home Loan EMI?

 

How to Buy Home without Loan in India?

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.

If you want to do a home loan balance transfer, then you can check out NoBroker’s Home Loan Services

SBI Home Loan Foreclosure Process

• 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.

• Get the lien on your property terminated

• Get the updated non-encumbrance certificate

• Take security cheques back

• Make sure that the bank updates your credit score

Read more:

How to do prepayment of SBI home loan?

How to close SBI Maxgain home loan?

What are SBI home loan reviews?

I hope now you know about the SBI home loan closure process.

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? Opt for Home Loan and know the eligibility criteria via NoBroker here [widget_homeLoan_checkEligibility_form]