Closure of HomeLoan: documents to collected from bank

POSTED BY Sandeep ON September 6, 2012 5:34 pm COMMENTS (3)

Hello,

I have SBI Maxgain Home Loan and planning to prepay (without penalty) all the principal amount and close the homeloan.

I checked with SBI, according to them they will provide a letter to me and RACPC. Based on this letter, RACPC will return my documents like original agreement copy..etc which was submitted while availing home loan. Thats it!!

Query:

Is it the only document ie letter required from bank?

Do I have to ask/demand any extra documents?

any other formalities to be completed?

Thanks in advance.

Regards

Sandeep

3 replies on this article “Closure of HomeLoan: documents to collected from bank”

  1. Sandeep says:
    September 7, 2012 at 12:32 pm

    Dear Ashal,
    Thanks for your reply.

    So, from SBI side only 1 letter is enough? which will contain that I have paid loan..(in standard format..:) ).

    Reason to close:
    1. Even if I prepay all amount and does not close loan, my EMI Rs. 20k/month will deduct as its standing instruction. (Dont know wheather I can stop this instruction) Later, amount will be minus which I have to take it from bank while closing. (considering I have not used OD amount lateron). Adjusting amount with bank , sometime take more time. Its my feeling.

    2. I am planning to invest somewhere else. May be 1 bhk flat with SBI maxgain loan only (by applying another after closing above loan), not very sure as of now. If not, you can suggest me. I can invest same EMI amount (i.e. 20k) in market.
    Currently I only have SIP for Rs. 5k/month since 1.5 yrs in Fidelity, reliance pharma, icici prud bluechip (all Growth option).

    Correct me wheather I should go ahead or not? I can surely rethink on it.

    Regards
    Sandeep

    Reply
    1. Ashal Jauhari says:
      September 7, 2012 at 6:34 pm

      Dear Sandeep, once the full loan amount matches with your parked surplus amount, your interest outgo ‘ll become zero. Yes I do agree that EMI of 20K ‘ll remain continue but interestingly the interest part of that EMI ‘ll keep on piling up in Max Gain account. In my opinion, instead of purchasing another house with loan, you should invest this saved interest into MFs. You may invest in existing MFs. You may use the MG acct. itself to invest in MFs.

      Thanks

      Ashal

      Reply
  2. Ashal Jauhari says:
    September 6, 2012 at 8:34 pm

    Dear Sandeep, what ever property related documents were originally submitted by you – like receipts of payment made to builder/seller, original title deed of your property, share certificate of the co-operative society etc….. should be returned back to you by SBI.

    By the way, May I know, why do you want to prepay when your loan is Max Gain?

    Thanks

    Ashal

    Reply

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