Pre - Closure Home Loan: Which Documents Get from the lender?



Question:

I had taken a home loan 15 years ago. I am planning to Pre closure the loan. Which documents I get from the lender?

Answer:

When the Home Loan was taken 15 years back, the bank or / Housing Finance company (HFC) would have given a receipt for the various documents taken by them from the home loan borrower.Take this document with him to the Bank or / HFC.

Check with the Bank /  HFC for the outstanding principal on the Housing loan account & get the repayment loan statement. Re-confirm the amount due with the actual amounts paid as per the client pass book.


Check whether the loan repaying statement has any pre - closure charges in the calculation. If so, please tell the Bank / HFC that as per Reserve Bank (RBI) rules there is  no pre - closure charges are payable on Housing loan Pre - closure.

Check for any overdue & cheque bounce charges in the calculation go amount due. Satisfy if they are genuine delay charges or /  bounce charges.

Take a Demand Draft (DD)  for the amount due & ask them when they will release the original documents. Depending on the Bank / HFC the time taken to give the documents may take anywhere between a 10 days to 15 days to get.

On submission of the DD get a No - due certificate from the Bank / HFC for all your loan accounts.


On the date told carry the no - due certificate and go personally to the Bank / HFC office & collect the documents. When collecting the documents verify the documents with list of documents  acknowledgement given by the Bank / HFC when the home loan was taken & satisfy that all the documents are as per the list. Acknowledge that you have recived the originals to the Bank / HFC.
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