Hey pal,
I recently had to get my home loan pre closed. I spoke to my bank manager and asked about Federal Bank home loan pre closure procedure. He told me pre-closure can be done either in part or in full. If you're looking to pre-close the entire loan amount, you'll need to pay the outstanding balance along with any additional charges or fees. On the other hand, if you're looking to pre-close a part of the loan amount, you'll need to inform the bank about the specific amount you wish to pay and they'll calculate the revised EMI based on the remaining balance.
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What is procedure to pre closure federal bank home loan?
You will need to visit the nearest branch of the Federal Bank.
You may have to submit a letter requesting the bank personnel to pre-close your loan amount.
The bank will process it within a few working days and inform you of the final pre-closure amount that needs to be paid.
Next you will need to hand over the cheque to the bank representative with the remaining loan amount. You will need to submit required documents ( EMI slip,valid identity proof and address proof).
When the request for preclosure is accepted. Make sure to collect the No Dues Certificate (NDC) from the lender.
Federal Bank’s schedule of charges that may be applicable when pre-closing your loan:
Type of Loan |
Penalty |
| Floating rate loans to individuals | Nil |
| Fixed rate loans to non-individuals (overdraft) | 3% of the outstanding loan balance or the DP |
| Hybrid loans |
|
If you need more help with Federal Bank home loan pre closure procedure, leave a comment below.
Read more:
Does foreclosure affect your CIBIL score?
What is prepayment of home loan?
What is foreclosure letter?
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Authors Of The Question
What is procedure to pre closure Federal Bank home loan?
Anonymous
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1 Answers
1 Year
2023-04-13T12:18:38+00:00 2023-04-13T12:38:49+00:00Comment
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