How to close SBI Maxgain loan account permanently?

POSTED BY Sachin Kherde ON May 6, 2012 9:53 pm COMMENTS (5)

MaxGain loan account details:
Book Balance: -6,41,723.00
Limit: 22,82,116.00
Drawing Power: 22,82,116.00
Available Balance: 16,40,393.00

If I pay Rs. 6,41,723.00 then Book Balance will be 0. No interest should be charged on my account.
Now, I want to permanently close home loan account so that EMI should not be debited from my savings account.
I am currently in USA, wouldn’t be possible for me to visit bank personally. Is their any way to close loan account?

5 replies on this article “How to close SBI Maxgain loan account permanently?”

  1. Rohit says:

    Hi

    My query is similar to Sachin-

    1) I want to understand that the day my book balance becomes zero- it means my home loan has ended and I can request bank to close my account? Am I correct? and after that I will get my property papers
    2) The above doubt came becasue everywhere I am reading that even after parking surplus fund the “Drawing Power” is not reducing and Drawing Power= Outstanding Principle. If I am prepaying/ parking surplus fund- shouldn’t the Outstanding Principle/ Drwing power alo reduce? In case of Sachin…his book balance is only Rs 6 lakhs but drawing power/ outsatnding pricile still stands at ~Rs 23 lakhs……..Can anyone please clarify

  2. Dear Sachin, from which account the regular EMI deduction is taking place? Is it a niormal SB account of SBI or any other bank’s SB account? Please clarify.

    Thanks

    Ashal

  3. Sachin

    I have seen cases where these banks really make it tough for people to prepay if you are not physically present

    Do you have an option with SBI where you can send the cheque of the remaining amount for prepayment ?

    Or did you try adding your loan account for NEFT payment as explained here : https://www.jagoinvestor.com/2012/02/home-loan-prepayment-online.html

    1. Sachin Kherde says:

      Hi Manish,

      Thanks for your response. I have already registered my loan account for NEFT. I always transfer money online. My question is how can I close loan account permanatenly.

      Do I need to give application to bank for forclosure of an account? Will bank give property documents to someone if I authorize?

      1. Ok , so you want to pay off all the loan and close the acccount .. I think unless you have a power of attorney assigned to some one ,this wont be possible . Because they cant hand over it to anyone just like that .. You contact to bank and you might want to write a power of attorney for someone . May be the whole work can be done in India and the person can send the documents to you for signature .

        Just check this

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