SBI Housing loan pre-closure

POSTED BY kumar ON May 19, 2013 7:39 pm COMMENTS (4)

Hi Ashal,

I bought an apartment in September 2012, with housing loan from SBI. The bank have till date disbursed one payment based on the Agreement of Sales. Now, I am planning to sell the property either to the builder or a third party for which discussions are going on.

1. Can I transfer the loan to the new buyer, if he/she intends to take a loan from SBI?

2. Do I need to pre-close the loan to do this transfer?

3. What happens to the mortgage of the property after pre-closure?

4. What are the points to keep in mind while dealing with the builder because they are also interested in buying-back the property.

Appreciate your response.

Thanks in advance

Kumar

 

 

 

4 replies on this article “SBI Housing loan pre-closure”

  1. Dear Kumar, please thank dear Angan Chandra. I did not answer you. Here are my answers to your queries.

    1. Can I transfer the loan to the new buyer, if he/she intends to take a loan from SBI?
    Yes is the answer.

    2. Do I need to pre-close the loan to do this transfer?
    If SBI agrees, without paying from your pocket, the loan can be transferred to the new buyer. If SBI demands the current loan to be closed first, you w’d have to pay from your pocket to get it close.

    3. What happens to the mortgage of the property after pre-closure?
    SBI ‘ll issue a Mortgage deed cancellation letter & you w’d have to contact an advocate to revoke the mortgage marked on your property. Please do not forget to collect NOC from SBI towards the loan repayment done by you.

    4. What are the points to keep in mind while dealing with the builder because they are also interested in buying-back the property.
    Make sure, you are not at loss after calculating all the things.

    Additional point from my side – If you have claim any tax benefit under section 80C for principal amount repayment, the same ‘ll be reversed in the year of sell & you w’d have to pay the saved tax.

    If the holding period is less than 3Y, the gains if any ‘ll be short term capital gains & ‘ll be charged at your slab rate.

    Thanks

    Ashal

  2. angan chandra says:

    you pls. contact your SBI branch for loan transfer & loan pre-closure. First you have to repay bank of the amount you have taken as loan either from the buyer or by loan transfer. So contact your SBI bank branch for details of formalities & also update the same to the buyer. There should not be any pre-closing charge of loan.
    for buy back by developer, you also discuss with developer for the details of the deal. You should always calculate the cost involved it. After closing loan from bank don’t forget to take NOC from bank.
    And for tax point of view, as you sell the property in less than 3 years you will be fall under short term capital gain tax of the amount of profit (sell price-buy price) if any.

    1. kumar says:

      Thanks Ashal for your answers. I will check with the Bank and the builder to get the details.

      1. kumar says:

        Hi Angan, Thanks a lot for your valuable inputs 🙂

        Ashal, thanks for your response. That was well explained indeed.

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