How to close Home Loan in SBI Max Gain

POSTED BY Abhishek Jain ON February 11, 2013 4:04 pm COMMENTS (2)


I had taken a loan of 37L in 2010 and curently besides EMI and money I have parked, it totals to Available Balance of 28L. I have couple of questions

1. I have an ECS for EMI deduction from salaried account for 5-6(dont remember) years of 40K pm

2. Once Available balance reaches 37L I beleive interest debited will be zero but what do I do for ECS as it will still keep deducting EMI (although I know I can still spend it from loan account) but is there a way to stop this?

3. In this case when available balance is 37L, do I need to declare to bank or they will automatically take away this amount and will close the loan?

4. Is it advisable to close or should I just continue because I am not paying interest but at the same time if I have some contingency need I can take out the money at the cost of ineterst that will again start


Appreciate if you can advise?


2 replies on this article “How to close Home Loan in SBI Max Gain”

  1. Credexpert says:

    Dear Mr.Jain,

    You will have to inform the bank to stop the ECs mandate for EMI deduction. Also It would be in your best interest if you check with the bank itself of what would happen to the loan once the available balance is Rs.37 lakhs.

    If you need the funds for some contingencies, then we would advise that you keep a margin in order to prevent the bank from closing the loan. However the answer to this depends on how the bank treats your loan once the available balance reaches Rs. 37 lakhs.


  2. Dear Abhishek, if I’ll be in your place, I ‘ll continue the loan as it is. No Interest so no problem to run loan for it’s term. As there are 37L Rs. with me in my MG acct., why I w’d think to close this liquidity?

    I w’d keep running the loan. Yes the interest ‘ll start again on the withdraw part if it happens at all.

    In case you want to get rid off for your mental peace, you w’d have to inform your bank in written to adjust the available surplus amount against outstanding loan amount & then only your loan ‘ll be considered as closed.


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