Loan Closing - Some doubts.

mail4ajo · 8th October 2008, 17:38

I plan to close my SBI loan in December. They said that I need not pay foreclosure charges after expiry of 50% of the loan term which comes up in December. Anyone has experiences preclosing SBI loans? I read Kuttapan's post.

palioman · 11th October 2008, 06:14

Thanks, SLK for your calculation...does seem like a miniscule amount in retrospect doesn't it.........the reason why I am contemplating foreclosure is 1.to be EMI free
2. the new Honda City is tempting me , however I also do know that the Swift vdi has got a two month waiting list.Damn ! why does it rattle so much ?

benkey2 · 12th October 2008, 20:30

Quote:

Originally Posted by palioman

I have a loan for 3 lacs, started in May this year, at an interest of 11%..the EMI is 9700 per month and the prepayment penalty is 2%.

which bank did u take the loan. one of my friend is paying ~9400 EMI for his 4 lacs loan. he took the loan may 2008.

SLK · 12th October 2008, 23:36

Quote:

Originally Posted by benkey2

which bank did u take the loan. one of my friend is paying ~9400 EMI for his 4 lacs loan. he took the loan may 2008.

That loan must be for ~ 4.5 years. And not 3 years!!

SBR · 17th February 2009, 18:34

Hi I currently own a M 800 AC Nov 2006 model.

I took a 100% ON Road funding of Ex-Showroom price in Bangalore, it was 2.15 lacs for a 5 year loan from ICICI Bank thru ECS debiting my salary account directly. No Security Cheques have been given to them neither I have a copy of Loan Agreement.

My First EMI started from 05th Jan, 2007. EMI amount is Rs. 4876/-. Not sure how much interest I am charged. Have paid 26 EMIs till now and the Pre closure charges are 5.6%.

The questions I want to ask are;

1) I plan to upgrade to a bigger car, may be Swift DDIS VDI or Palio SDX or a Bolero SLX (yet to decide on this). I plan to take this car (whichever I buy) on a maximum funding on a 5 year loan mostly from SBI.

2) If I have to do this upgrade in few months from now, pls. suggest what are points which I need to keep in mind and need to follow so that I can plan my purchase accordingly.

PS: Mods, if I have posted this post in a wrong thread,

move it to a correct location.

Await suggestions.

rah_pandey · 1st November 2009, 13:07

Hello BHPians,
I am planing to move from Hyderabad to New Delhi. I would like to clarify few thingst
1. Should i foreclose my SBI 3 lac loan runing into 7th month. SBI foreclosure charges =2%.
a) How much time would it take to get final NOC from RTO? I am planing to leave Hyd on 10 Nov'09.
b) I shifted from the address at which my vehicle is registered to a newer address. Can my NOC be sent to my permanent address

What is the procedure for transfer of loan from one location to another--different states? How much time would it take
b)

bnzjon · 2nd May 2010, 18:52

Friends, need help !

I am planning to foreclose my Loan o/s of Rs. 4.8 lacs with HDFC Bank after 13 months of taking the loan.

I have to shell out 5 percent of o/s as prepayment penalty. Is there any way that the Bank will waive this prepayment charges ?

rovingeye · 30th April 2019, 20:41

Reviving this old thread.

I paid off my SBI home loan today. Thankfully, these days there are no prepayment penalties anymore, atleast there wasn't any for my loan. The last interest due will appear on the account tonight and I will pay it off online tomorrow. I read somewhere that the bank will not allow me to pay the full amount online. Is that true? If yes, I will just keep Rs 1 due so I can write them a check for Rs 1 when I physically visit the branch, which is unfortunately in Pune (I live in Delhi).

I'm looking for comprehensive guidance on the loan closing process. I know I need to visit the home branch to collect the original property documents. Question is, what other documents do I need to collect? I want to type up any applications or letters in advance and keep everything ready before I visit the branch.

If we have bank employees with us here or if someone has gone through the process recently please advise.

rovingeye · 3rd May 2019, 09:03

Quick update:

So, since it wasn't possible to pay the last rupee online to close out the loan, I opened a ticket to the home branch of SBI requesting them to advise procedure. I promptly received a call the next day and the branch manager said she will deduct one rupee from my savings account and close out the loan from the back end. Then when I visit Pune in future, I can visit the branch and finish the paper work and other formalities.

As expected, one rupee was deducted from the savings account and upon checking this morning, I find the loan account is completely missing from my account list on the sbi app. I feel relieved and free from all debt finally. I'm a free man again.

8th October 2008, 17:38	#46
mail4ajo Senior - BHPian Join Date: Mar 2006 Location: San Antonio, TX Posts: 1,957 Thanked: 331 Times View My Garage	I plan to close my SBI loan in December. They said that I need not pay foreclosure charges after expiry of 50% of the loan term which comes up in December. Anyone has experiences preclosing SBI loans? I read Kuttapan's post.
	() Thanks

11th October 2008, 06:14	#47
palioman BHPian Join Date: Oct 2007 Location: Dubai Posts: 53 Thanked: 2 Times	Thanks, SLK for your calculation...does seem like a miniscule amount in retrospect doesn't it.........the reason why I am contemplating foreclosure is 1.to be EMI free 2. the new Honda City is tempting me , however I also do know that the Swift vdi has got a two month waiting list.Damn ! why does it rattle so much ?
	() Thanks

17th February 2009, 18:34	#50
SBR BHPian Join Date: Nov 2008 Location: Bangalore Posts: 237 Thanked: 60 Times	Hi I currently own a M 800 AC Nov 2006 model. I took a 100% ON Road funding of Ex-Showroom price in Bangalore, it was 2.15 lacs for a 5 year loan from ICICI Bank thru ECS debiting my salary account directly. No Security Cheques have been given to them neither I have a copy of Loan Agreement. My First EMI started from 05th Jan, 2007. EMI amount is Rs. 4876/-. Not sure how much interest I am charged. Have paid 26 EMIs till now and the Pre closure charges are 5.6%. The questions I want to ask are; 1) I plan to upgrade to a bigger car, may be Swift DDIS VDI or Palio SDX or a Bolero SLX (yet to decide on this). I plan to take this car (whichever I buy) on a maximum funding on a 5 year loan mostly from SBI. 2) If I have to do this upgrade in few months from now, pls. suggest what are points which I need to keep in mind and need to follow so that I can plan my purchase accordingly. PS: Mods, if I have posted this post in a wrong thread, move it to a correct location. Await suggestions.
	() Thanks

1st November 2009, 13:07	#51
rah_pandey Newbie Join Date: Feb 2008 Location: Hyderabad Posts: 2 Thanked: 0 Times	Hello BHPians, I am planing to move from Hyderabad to New Delhi. I would like to clarify few thingst 1. Should i foreclose my SBI 3 lac loan runing into 7th month. SBI foreclosure charges =2%. a) How much time would it take to get final NOC from RTO? I am planing to leave Hyd on 10 Nov'09. b) I shifted from the address at which my vehicle is registered to a newer address. Can my NOC be sent to my permanent address What is the procedure for transfer of loan from one location to another--different states? How much time would it take b)
	() Thanks

2nd May 2010, 18:52	#52
bnzjon BHPian Join Date: Jul 2009 Location: Dubai Posts: 836 Thanked: 127 Times View My Garage	Friends, need help ! I am planning to foreclose my Loan o/s of Rs. 4.8 lacs with HDFC Bank after 13 months of taking the loan. I have to shell out 5 percent of o/s as prepayment penalty. Is there any way that the Bank will waive this prepayment charges ?
	() Thanks

30th April 2019, 20:41	#53
rovingeye BHPian Join Date: Nov 2018 Location: New Delhi Posts: 349 Thanked: 927 Times	Re: Loan Closing - Some doubts. Reviving this old thread. I paid off my SBI home loan today. Thankfully, these days there are no prepayment penalties anymore, atleast there wasn't any for my loan. The last interest due will appear on the account tonight and I will pay it off online tomorrow. I read somewhere that the bank will not allow me to pay the full amount online. Is that true? If yes, I will just keep Rs 1 due so I can write them a check for Rs 1 when I physically visit the branch, which is unfortunately in Pune (I live in Delhi). I'm looking for comprehensive guidance on the loan closing process. I know I need to visit the home branch to collect the original property documents. Question is, what other documents do I need to collect? I want to type up any applications or letters in advance and keep everything ready before I visit the branch. If we have bank employees with us here or if someone has gone through the process recently please advise.
	() Thanks

3rd May 2019, 09:03	#54
rovingeye BHPian Join Date: Nov 2018 Location: New Delhi Posts: 349 Thanked: 927 Times	Re: Loan Closing - Some doubts. Quick update: So, since it wasn't possible to pay the last rupee online to close out the loan, I opened a ticket to the home branch of SBI requesting them to advise procedure. I promptly received a call the next day and the branch manager said she will deduct one rupee from my savings account and close out the loan from the back end. Then when I visit Pune in future, I can visit the branch and finish the paper work and other formalities. As expected, one rupee was deducted from the savings account and upon checking this morning, I find the loan account is completely missing from my account list on the sbi app. I feel relieved and free from all debt finally. I'm a free man again.
	(1) Thanks