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For information on all eligible customers under Griha Suvidha Home Loan click here. Lien is the right to keep possession of property belonging to another person until the debt owed by that person is discharged. If the lender delays in doing so, you can get it removed with the help of NOC issued by bank. Loans are available for purchase of residential plots for construction of house within period of 3 years. You also need to have a good track record of credit that proves your ability to pay back the loan. Your housing situation plays a vital role in the approval of your loan.
It will also give an NOC stating that it no longer has an interest in the property. If mortgage has been registered, then the no- objection certificate needs to be taken to the Registrar’s Office to get the lien removed. The borrower and a representative of the bank need to be present for this. However, if the mortgage is not registered, the bank will simply returns the title deeds.
Plot Loans
After closure of a home loan, it is the lender’s duty to hand over all the required documents back to the borrower. After all dues have been paid to the bank, the documents mentioned below must be collected from the lending institution. Once the payments are done towards the pre-closure of LIC HFL home loan, you will be given the original property documents. The best part of the procedure to pre-close LIC HFL home loan is that the documents can be received in just 15 days.
I am not in India, so I want to know if its possible to close it via proxy or providing my brother with power of attorney ? My LIc agent tells me I can send an email to him + original signed letter with my brother and it should be possible, but can I trust his words? Kindly visit your bank to know the reason for not transferring your original documents.
Demerits of preclosing a home loan
I am writing this letter to request you to close my personal loan account with the number . In order to close a loan, you should have paid all your dues and let your bank manager know that you would like to close your loan account. Make sure you collect all your original documents once the closing procedure is over.
Update your credit score – Once the loan has been closed, you need to request the bank to update your credit score. If you took out a loan against the value of your LIC policy, the balance you owe on that loan will be paid before you are given any money for surrender of your policy. If your loan is more than your surrender value, you may end up having to pay money to surrender your policy. Home Renovation loans are available for existing as well as new customers. Home Improvement loans are available for existing as well as new customers.
Home Loan
Ensure you collect all original papers submitted to bank as a collateral. Match them with the list of documents received from bank at the time of disbursal. In case of flats, allotment letter, sale agreement of builder/society. Income Documents Last 6 months Salary slips and Form No.16 .
This varies according to the type of loan and the terms and conditions of the particular loan. You can learn more about how to apply for a loan and close a loan by reading this article. Also, learn how to write a loan closure letter by going through the sample loan closure letters. Since 2012, the Reserve Bank of India and National Housing Board have banned prepayment penalty on all floating interest rate home loans. However, you will have to pay a prepayment penalty if you have a fixed interest rate home loan.
If you have net banking facilities for this Home Loan Account you can do the pre-payment easily, if not you can provide power of attorney to your brother. It would be good to cross check with any of the officials of LICHFL regarding the process of pre-payment. So once your home loan is closed, you must ensure that your bank updates this information at CIBIL. If not done, you may face problems in future financial transactions or loans. Top up Loan is additional loan over and above base home loan available for balance transfer cases to existing customers.
Balance Transfer or Takeover of your existing home loan with other financial institute is also possible. Sorry, but you will not be able to close the entire home loan by repaying the first installment disbursed to you. You will need to repay the entire home loan amount as and when its disbursed to you. That’s what the rules say, however, you can approach your bank and ask them to consider you as a special case. Second, you can purchase a zero Objection Certification .
I hope before you started prepaying the amount, you had gone through all the formalities. When the bank disbursed your loan, it must have taken security cheques in case you defaulted on your EMI payments. Make sure you take these cheques back, once the loan is closed and destroy them to prevent misuse.
If the last EMI and all outstanding dues have been paid, then you need to write a letter to the bank requesting a return of the original documents. If you need any other documents such as invoice copies etc. include this in your letter. Generally, the bank responds to such letters within 7 working days. The bank will return your original documents and issue a closure letter stating that there is no outstanding amount.
It must be taken into account that financial institutions constantly charges prepayment punishment to possess closing financing in advance of tenure. Collecting the documents – While applying for the housing loan, original documents of the property must be handed over to the bank. These documents must be collected back from the bank on closure of the loan.
I am enclosing a copy of my Aadhaar Card, a copy of my PAN Card, Loan Sanction Documents, EMI Payment Receipts and a copy of my bank passbook as informed. I request you to kindly do the needful and close my home loan account as early as possible. In conclusion, prepaying a loan can help save some money. However, it must be done after careful calculation, as sometimes it may very well be that you are not saving any money.
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