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4 important things to complete when you Close


your Home Loan
MANISH CHAUHAN 135 COMMENTS

Its a dream of most of the homeowners to own a house without any loan on their head. Its a great moment in their
life, when they pay the nal EMI of their home loan or pre-pay the full outstanding balance and clear the home loan
fully. Its a moment of pride and happiness. Its a great relief for someone who was paying the EMI from so many
years continuously.

However in that excitement, a lot of people do not take all the required actions and later suffer because of small
things they didnt complete after closing their home loans. In this article, I want to share few things every home
owner should complete, when they are closing their loan.

While I am focusing totally on home loan closure in this article, but whatever I am going to share also applies when
one closes a car loan, education loan, personal loan or any other kind of loan.

Point #1 Take back your original Documents from Lender


This is a no-brainer.

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Make sure that whenever you close a home loan, you take back all the important document you had submitted at
the time of taking the loan. Original documents are really important to collect, because in future if you want to sell
DO YOU NEED
the house or want to take loan against property, that time you would require all the documents. Some of the

FINANCIAL
documents HELP?
we are talking aboout are

Original Sale Deed


Original Conveyance deed
Financial Planning

Power of Attorney
Buy Life Insurance
Possession Letter
Buy Health Insurance
Your Payment Receipts


Any Cancelled
Invest inCheques given
Mutual Funds


Some lenders even give you
Goal Based a copy of letter, mentioning what all documents were submitted by you to the lender at
Planning

the time of taking the loan. Below is a sample list of documents mentioned by HDFC LTD to one its loan takers. It
clearly mentions exactly which documents were taken by the bank at the time of giving the home loan. This really
helps, becauseYES
there- isI no
WANT HELP
confusion later and lender is also accountable towards the customer.

Make sure you personally go to the branch and collect all the documents yourself. Do not ask the lender to send the
documents via courier or speed post. There are tons of cases where the documents were misplaced and investors
had to run from pillar to post to get them back.

After getting the documents, you should also check if they are in good condition and no pages are missing from
between. Also If you cant collect the documents yourself for some reason (like when you are out of country) then
you can give an authorization letter to someone trusted, who can collect the documents on your behalf or ask bank
to wait till you come back yourself and then take the documents.

Point #2 Take NOC from the lender

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NOC or No Dues certi cate is a legal document provided by the lender, which certi es that you have repaid the full
loan and no outstanding balance exists. The document will have the lender stamp of the lender. Its
DO YOU NEED
extremelyimportant document, which you should collect from the lender. Below you can check out the experience
of oneFINANCIAL HELP?
investor who had no proof of closing the loan and how he faced issue due to that.

Financial Planning

Buy Life Insurance

Buy Health Insurance

Invest in Mutual Funds

Goal Based Planning

YES - I WANT HELP

Usually, NOC/NDC is dispatched by the lender after the loan is fully paid. But if you do not get it by default, then you
should talk to your lender. I have already written in details about the NOC and its importance

Point #3 Remove Lien from Registrar Of ce, if any


Lets rst understand what is the meaning of Lien?

Lien means a right to keep possession of property belonging to another person until a debt owed by that person is
discharged.

What is means in simple language is that, the lender will keep the right to sell the property themselves, if the loan
taker is not able to pay back the loan. These days banks do not put a lien on property, because they anyways check
the background of the customer properly and keep the original documents in their custody. But at times, it can
happen that due to customer background or on a slight suspicion, lender wants to put a lien on property, which is
done in registrar of ce.

So you should surely check with your lender, if they have put lien on your property or not?

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And, If they have then you should ask them to help you to remove the lien and overall process. Some people will
ask What happens if I do not remove the lien?
DO YOU NEED
FINANCIAL HELP?
If you do not remove the lien from your house, then you will face dif culty at the time of selling the house in future,
and at that time you have to visit the lender again anyways. So please make sure you complete this part as soon as
your home loan is closed.


Once you clearFinancial
the lienPlanning
from your property, you can verify it back by applying for a new encumbrance certi cate,
which should mention that there is no encumbrance with the property, means no one has any legal rights in the

property. You should
Buy Lifesee that its mentioned in the certi cate. I was able to nd a sample certi cate on the internet
Insurance
which you can see.

Buy Health Insurance

Invest in Mutual Funds

Goal Based Planning

YES - I WANT HELP

Even if you are planning to not sell your house in future, still make sure you dont skip this step, Its always a good
idea to make sure 100% process is followed.

Point #4 Make sure your CIBIL report is updated with CLOSED entry
CIBIL report is one document which records each of your loan entry and all your actions of payment. Each lender
checks this CIBIL report before giving any kind of loan to you (even when they give you a credit card).

Once your home loan is closed, your bank should update CIBIL, that you have closed your home loan and an entry
called DATE CLOSED should appear on your report with the date of closure.

But many a times, banks delay this small action or completely ignore it for months and years. Your CIBIL report

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might not have that updated entry. So you should double check with your bank at the time of closure of loan that
they will update the CIBIL very soon.
DO YOU NEED
FINANCIAL HELP?

Financial Planning

Buy Life Insurance

Buy Health Insurance


So when shouldInvest
you in
check your
Mutual CIBIL report again? A good practice is to check it after 60 days of closing the loan
Funds
and verify if there is an entry of DATE CLOSED with a date on it.
Goal Based Planning
Make your Home loan closure 100% full proof
I have tried to make sure that you take all the last mile steps after closing your homeloan. Even if you prepay your
YES - I WANT HELP
home loan early, still you need to take all these steps, otherwise your home loan closure will not be 100% full proof.

Let me know if you want to add some other point in this list and I would be happy to add it.

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135 Comments Add Comment

manu
November 5, 2016 at 1:45 pm

Appreciate the useful information shared here.

Manish Chauhan

November 5, 2016 at 8:59 pm

Glad to know that manu ..

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DO YOU NEED
Kiran
October 2, 2016 at 8:56 pm
FINANCIAL HELP?
Hi Manish,

I took SBI Maxgain home loan of 24L in Jun 2011 and Im prepaying the home loan on regular
basis. Now Im working abroad and left with 1.2L book balance on my home loan, and am
Financial Planning
interested to close the home loan in next 2 months.


Is there a way Buy
I can close
Life my SBI Maxgain loan account from abroad? Any power of attorney
Insurance
would help? Please clarify.

Thanks, Buy Health Insurance


Kiran
Invest in Mutual Funds

Kiran
Goal Based Planning
November 3, 2016 at 12:01 pm

Hi Manish,

CouldYES - I WANT
you please HELP
help with this query?

Thanks,
Kiran

Manish Chauhan

November 5, 2016 at 9:40 pm

Hi Kiran

This article was written by someone else and we at Jagoinvestor do not have very
clear understanding of SBI maxgain

TimmanaGouda

September 30, 2016 at 6:44 pm

Hi manish, can we use your blogs on loans on our website/platform, which attempts to
empower loan consumer ..please look up whatsloan.com in next few days..

Regds

Timmana Gouda D
9900390180
timmana.gouda@whatsloan.com

Manish Chauhan

October 3, 2016 at 4:44 pm

Nope .

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DO YOU NEED
Anuradha
September 20, 2016 at 6:10 pm
FINANCIAL
Thanks for the Exhibits. It helpsHELP?
in knowing what kind of document I should be looking at.

Jagoinvestor Admin
Financial Planning
October 4, 2016 at 4:41 pm

ThanksBuy
forLife
your comment Anuradha
Insurance

Buy Health Insurance


Govind
Invest
September 5, 2016 in Mutual
at 12:55 pm Funds

Dear Manish,

I have taken a Goal
home loanPlanning
Based from SBI under MAXGAIN. Rs.30Lacs for a tenure of 20years,
starting from Mar2012. EMI is 30K.

In between in paid back some amount at different occasions, upon receipt of bonus, arrears
YES - I WANT HELP
etc. At present my book balance is 10.67Lacs.

I would like to reduce my tenure to 15 or 10 years. I am 48 years and I would like to close my
loan before the retirement. Hence this plan.

Are there any nancial implications, in terms of additional nancial burden/loss/negative


points/higher interest etc. due to this? How to apply for this to SBI?

Your guidance would be highly appreciated

Thanks
Govind

a
May 28, 2016 at 11:45 am

i had take a loan for tractor unfortunately it is stolen, we had launched FIR for the same and
intimate the bank for the same and tractor is also insured by the bank, my question is that can
bank charge the interest on the balance amount after that the tractor is stolen if the
intimation is already given that the tractor is stolen or the interest amount is paid by
insurance company

Manish Chauhan

June 2, 2016 at 4:37 pm

Hi a

This is very speci c query which you should follow up with the concerned authority
only. We wont be able to comment on that

Manish

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DO YOU NEED
Manish
March 23, 2016 at 7:20 pm

HelloFINANCIAL
Manish, HELP?
Good Day to you,


Would like to take your
Financial help here please,
Planning

This is Manish Chandrakant Khamkar age 28 year.. in last year 24-jun-2015, my dad passed

away,.. he was Buy Life Insurance
employee of Union bank of India & he took home loan from his bank.. after his
death bank closed his loan account and give me following paper regarding home loan.
Buy Health Insurance
1] Original Sale deed.
2] Original payment Receipts
Invest in Mutual Funds
3] Expired insurance Copy.
4] Xerox of Occupation certi cate [ Not original].

5] Stamp duty Goal Based Planning
& Registration receipts.,
6] NOC from Bank.

They have notYES


given- me below doHELP
I WANT
1] Original Conveyance deed
2] Possession Letter
3] Loan agreement
4] Any Cancelled Cheques

After reading your article.. i got alerts.. hence i need to con rm with you what i am supposed
to do here please.

Manish Chauhan

April 5, 2016 at 7:13 pm

First check with your bank on this. Why they have not given all these docs ?

Pankaj
April 13, 2016 at 7:48 am

Hi, I have a home loan with Union bank of India. Theyre charging me every year
5000 or 3000 in terms of legal fee which I cant understand. Nothing was told to me
when I went for the home loan. What can I do? Another question that I have is that
the only document that I have received from the bank is loan sanction letter. Is that
enough. Also the sanction letter doesnt talk about the documents that are with the
bank. What needs to be done?

Manish Chauhan

April 20, 2016 at 4:36 pm

You need to talk to the bank here. Ask them for the document which
mentions the docs you have given them . And talk about that charge? Is it
as per the agreement ?

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balbir
March 23, 2016 at 12:09 pm

goodFINANCIAL HELP?

Sundar
Financial Planning

March 20, 2016 at 1:35 pm


Buy Life Insurance
Hello Manish,


I am going to purchase
Buy HealthaInsurance
resale house near coimbatore. The house is under mortgage loan for
Rs 30 lac with private nance. I also need 15 Lac Housing loan from bank. what are the steps


to do to buy safely? pl.Mutual
Invest in note that
Fundsthe seller donot have the money to close his balance mortgae
amount in his own.

Goal Based Planning

Manish Chauhan

March 21, 2016 at 8:10 pm


YES - I WANT HELP
Check if there is a way to take over the loan from bank ?

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Monty
DO YOU NEED
February 6, 2016 at 10:20 pm

HelloFINANCIAL
Manish, HELP?
This is a serious query from my ends. It might be a bit long. But I will appreciate it if you get
the time to get through this. I joined Infosys on 26th October,2015 as a trainee. I left on 10th
Financial Planning
November,2015 due to some serious renal disorder of my mother. I informed the company of
the same and uploaded all the medical documents etc etc. I also informed them of the fact
Buy Life Insurance
that considering the seriousness of the situation, I may have to resign. Now, I actually reigned
on 26th Jan,2016 informing the company of the same and completing all the formalities. They
Buy Health Insurance
accepted the resignation and actually informed me to withdraw the EPF. In the meantime,I
was searching for jobs in my home town and actually got one. But I had not informed this new
Invest inI just
company of Infosys, Mutual Fundsas a fresher. I reckoned that 14days of experience would
joined
count nothing. Plus Infosys would take 45 days to send the relieving letter. So I would not

have my letterGoal
in hand
BasedatPlanning
the time of joining. Now, this new company is urging me to ll up the
EPF form and all. And there I really dont want to provide my previous employment details. I
actually had not signed any form with Infosys regarding PF and all. Now my question iswould
YESgenerated
there be an UAN - I WANT HELP
in my name already? Infosys has a PF trust. And my new company
is registered to EPFO directly. What should I do? I dont even know my PF account number in
Infosys as I had not received my salary slip there for the 14 days(The salary was credited to
my bank account though). I dont want to withdraw or transfer my PF money with Infosys. Just
let it be there. But I cam concerned with this new company of mine. What shuld I say on the
form 11 option saying Were you employed with any previous EPF company? Provide
previous company PF number or UAN. I dont know my pf account number or UAN number as
well. Should I lie there stating that I have not been employed etc etc? Technically, I was not
employed, it was just training.

Plus I have not signed any PF related form with Infosys. Dont even know whether they
deducted any PF money from that 14 days salary !! The HR provided me with a PF withdrawal
form though which I refused to withdraw. Now did they keep that deducted sum in any other
account of them because they expected me to sign their PF form afterwards or not? I dont
know that.
I repeatI have not signed any PF form with Infosys.

Thanks in advance Manish.

Manish Chauhan

February 21, 2016 at 4:28 pm

I dont think there is any issue here. Just ll up the form with new company. Forget
the old company matter totally..

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DO YOU NEED
Kunal Mukherjee
December 22, 2015 at 6:36 pm

Can IFINANCIAL HELP?


close the loan by two separate cheques ? what is the RBI guideline on that


ManishFinancial
Chauhan Planning
December 27, 2015 at 10:08 am

Hi Kunal
BuyMukherjee
Life Insurance

This is very speci c query which you should follow up with the concerned authority
only. We
Buywont
Healthbe
Insurance
able to comment on that

Manish
Invest in Mutual Funds

Goal Based Planning


sushil
December 21, 2015 at 12:13 am
YESArticle..Thaks
Really Very Good - I WANT HELP for giving such a good information.

Manish Chauhan

December 27, 2015 at 10:45 am

Thanks for your comment sushil

shanaya
December 18, 2015 at 12:53 pm

HI Manish,

we have taken loan against mortgage of home, which we paid all amount but still that
co-operative bank asking payment are also there so they push us in court case but nally we
won the case so there is no due on us as per bank remark , but they had put our property on
lien what is the procedure to release our home from them, they also done complaint on some
government of ce of local city about this loan but court has given order now in our favor, so
please guide me in this process what need to do

Manish Chauhan

December 27, 2015 at 11:34 am

Hi shanaya

This is very speci c query which you should follow up with the concerned authority
only. We wont be able to comment on that

Manish

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DO YOU NEED
Lingasamy
December 17, 2015 at 4:25 pm
FINANCIAL
Hi Manish, HELP?
Thanks for giving good article on Loan.

I have taken a Home Loan with Axis Bank, Chennai, on a property and planning to pre-close
the loan by Jan 2016. The property has lien with the lender. So I asked Axis Bank customer
Financial Planning
care how the lien will be removed once I close the loan. They say, they will give all the
required document and I have to approach SRO and apply for removal of lien and when I
Buy Life Insurance
question them, will bank not send any representative to make a transaction at SRO, they so
NO. I was thinking, bank representative will come and help at SRO of ce [Chennai]. While
Buy Health
availing loan, bank Insurance me and awaiting for my call all the time.. :), I know everyone
was following
will have the same experience.
Invest in Mutual Funds
Is this correct process from bank end and should borrower only to reach SRO to le release-
of-lien with necessary document from bank and authorized bank of cial required?
Goal Based Planning

Manish Chauhan
YES - I WANT HELP
December 27, 2015 at 11:54 am

I am not very sure if banks do help you on this or not. I cant verify it.

However I think the process should not be very complicated. Mainly you would
need an NOC from bank that the loan is closed and the lien can be removed now. It
will take 2-3 rounds .

Regarding banks not helping you, In crude language, now they dont need you and if
its not mandatory by law, they will not care to help you.

RAVI
November 25, 2015 at 1:27 pm

Please note to inform your bankers to stop ECS payment to the loan account. Especially in
case of prepayments.

Manish Chauhan

November 25, 2015 at 2:03 pm

Good point

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DO YOU NEED
Ramesh

FINANCIAL HELP?
November 23, 2015 at 1:05 pm

Good Post ! i have taken a loan of worth rs 15 lac against my home is there some thing that if i
am not alive in future or something happen to me my family should not suffer or they should
not be homeless .please guide me if you have any plan for this
Financial Planning

ManishBuy
Chauhan
Life Insurance

November 25, 2015 at 6:30 pm


You canBuytake a term
Health plan covering this loan
Insurance

Invest in Mutual Funds

Rajeev
Goal Based Planning
October 2, 2015 at 8:09 am

Hi,
I payoff my loan on 28th sept. Now I waiting for the release of documents from HDFC. How
YES - I WANT HELP
many days it will take for the documents to be released and NOC to be given.
Regards,
Rajeev Saini.

AMol
October 8, 2015 at 8:10 pm

It takes 1-2 weeks for them to release the documents.

Manish Chauhan

October 9, 2015 at 8:16 pm

Hi Rajeev

This is very speci c query which you should follow up with the concerned authority
only. We wont be able to comment on that

Manish

ritesh
December 8, 2015 at 7:08 pm

as rightly said y Manish, it depends on organisation, where the hard copies


are kept, Maximum time< 1 month.

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DO YOU NEED
sunil
September 16, 2015 at 8:30 pm
FINANCIAL
Mr. Manish HELP?
could you please tell what to do. I have paid full credit card bill without going for
settlement . But in my cibil report it shows written off. Please advise for the deletion in cibil
report.
Financial Planning

ManishBuy
Chauhan
Life Insurance
September 16, 2015 at 9:55 pm

Hi sunilBuy Health Insurance


You should rst get in touch with credit card company to nd out why they have

marked it asinwritten
Invest off. I am sure there is something you do not know about your
Mutual Funds

debt, I mean there was some outstanding and it was never paid off
Goal Based Planning

bkmurthy
YES - I WANT HELP
September 5, 2015 at 9:33 pm

Dear Manish,

Thanks for the article. I had taken back my documents in 2014 but had no proof of loan
closure. After reading your article, I immediately went to the bank and asked for the
certi cate and got it. I dont know how to check the CIBIL records.

Manish Chauhan

September 6, 2015 at 2:27 pm

You can just go to cibil.com and check your score and report by paying the fees

TILAK
August 23, 2015 at 8:17 pm

Sir,
I have an UAN. But recently I have changed my job, So how can I update my old UAN to my
new pf Account?

Rgds,
Tilak

Manish Chauhan

August 30, 2015 at 12:59 pm

Check this article http://www.jagoinvestor.com/2015/02/uan-epf-guide.html

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John
DO YOU NEED
FINANCIAL HELP?
August 23, 2015 at 12:31 pm

Hello Manish ,

I thought of taking home loan from India bull Housing Finance Limited for 15L and tenure


term of 10 years .
Financial Planning

Confused whether to take from this organization or not ?



Please advise .
Buy Life Insurance

If possible please guide me through policy and procedure to take home loan since am very
Buy Health Insurance
new to these things.


Thanks in advance
Invest.in Mutual Funds
John

Goal Based Planning

Manish Chauhan

AugustYES - IatWANT
30, 2015 1:03 p HELP
I am yet not clear on your query . Please ask exactly what you need ?

Dinesh
August 21, 2015 at 11:25 am

Very nice article with meaningful points to consider at the time of closing the home loan !!

Thanks..

Manish Chauhan

August 30, 2015 at 1:38 pm

Glad to know that Dinesh ..

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DO YOU NEED
Vinita
August 11, 2015 at 8:15 pm
FINANCIAL HELP?
Hi Manish,

This query is very urgent as my father passed away last month and I am trying to close his
paper work.
Financial Planning
My dad had a home loan from ICICI bank. He had been paying it from last 12 years. Bank kept


on increasing the
Buytenure of the loan as and when there was an increase in interest rates. Bank
Life Insurance
didnt inform about this to my father. There was no verbal or written communication in this
regard.
Buy Health Insurance
So, my father kept on paying a constant EMI on the loan. He never came to know that the loan

that he had originally taken Funds
Invest in Mutual for 12 years, is now increased to 24 years!!! Also, the outstanding
principal is obviously huge because all the money went into paying interest for all 12 years.

Goal
Is it right on the Basedpart
banks Planning
to not inform (and take consent) the customer about increased
loan tenure? I feel this is cheating on banks part. What do you suggest in this case?

Thanks & Regards,


YES - I WANT HELP

Manish Chauhan

August 30, 2015 at 4:17 pm

Vinita

As far as I know, if the loan is on oating interest rates, this change happens
automatically, Bank is not suppose to inform separately to customer

Vinita
August 31, 2015 at 10:32 am

Thanks Manish!

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Arpit
DO YOU NEED
July 5, 2015 at 10:59 pm
FINANCIAL
I have HELP?
a joint home loan with my wife as the co applicant. My wife is also the joint property
owner with me. Coming to the Income tax bene ts on Home Loan,
1.) Can we both claim individual deductions of Rs. 1.5 lacs each on account of principal

payments, i.e total 3 lacs
Financial by both
Planning

2.) Can we both claim individual deductions of Rs. 2 lacs each on account of interest payments,

i.e. totol 4 lacsBuy
by both.
Life Insurance

ManishBuy Health Insurance


Chauhan


July 17, 2015 at 3:02 pm
Invest in Mutual Funds
1. Yes, you both can claim that


2. Yes, Goal
sameBased
for interest
Planning

YES - I WANT HELP

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DO YOU NEED
bipul
July 5, 2015 at 4:09 pm
FINANCIAL HELP?
Hi Manish,

Could you please clarify my confusion on below points.


I am working in a foreign
Financial bank IT department as Software professional in pune. I am basically
Planning
from Bokaro Steel city. we have a house (Home loan 8 L) in my home town on my mothers


name. My bothBuy
parent are borrower in that loan. Now we need some money.
Life Insurance

So we have two option



1. Clear the loan
Buyamount and sell it to some one out side.Its current price 30 L or
Health Insurance
2. I can purchase this property by taking a home loan(25L), so house will be within us and also I

can take the tax bene
Invest t of that
in Mutual loan, so i am planning to purchase that property after clearing
Funds
all the previous loan amount on that and then take a loan on my name.

Goal Based Planning


Confusion or Query
1. whether ,Sell and purchase of property within family (between mother and son) will effect
my loan eligibility criteria, as we are two brother(he has no objection on this decision, its
mutual).?
YES - I WANT HELP
2. Banks will give me loan or not as i am working in Pune and property is in Bokaro.?
3. I will not be staying in that house but my parent, So how can i use the tax bene t of this
loan.?

Thanks in advance
Bipul

Manish Chauhan

July 17, 2015 at 3:10 pm

1. No , banks do not have any distinction in that. If you notice , bank nevers asks
anything about the SELLER !

2. Yes, banks do provide loans for other cities

3. That does not matter, you dont have to PHYSICALLY present to avail tax
deductions.What is required is that you have the possession of the at, thats all !

Manish

nitin
November 9, 2015 at 3:38 pm

Hi manish,

Are you sure abt point 1. I think bank doesnt give loan for transactions
within blood relation, con rmed by both HDFC & ICICI bank.
regards,
nitin

Manish Chauhan

18 of 36 20-06-2017 14:21
4 things to complete when you Close your Home Loan http://www.jagoinvestor.com/2015/03/closing-home-loan-early.html

DO YOU NEED
rangabashyam
July 4, 2015 at 11:09 pm
FINANCIAL HELP?
Is it worth investing with http://www.smartowner.com. Suggestion please!


ManishFinancial
Chauhan Planning

July 17, 2015 at 3:14 pm


Hi rangabashyam
Buy Life Insurance

I cant comment on that. There are no public reviews on that !


Buy Health Insurance

Invest in Mutual Funds


Vishal


June 26, 2015 atGoal
6:33 Based
pm Planning

Manish..A very informative article indeed..Just now suggested this site for my brother who
just started his career abroad with a triple salary than mine :).. Hope i have done something
good for him YES - I WANT
to improve HELP
his nancial literacy.

My CIBIL score is 700 but im not getting loans anymore because there are some issues
unknown. Do you have any artice to understand ones CIBIL report properly??

Manish Chauhan

June 27, 2015 at 3:25 pm

Hi Vishal

Good to know that . A 700 score is not that great . In last year more than 80%
loans will given to those with score of more than 750 . So 700 is on lower side. The
main thing is your CIBIL REPORT remarks . This PDF from cibil does of good job of
explaining things https://www.cibil.com/sites/default/ les/pdf/understanding-
cir-ctc.pdf

19 of 36 20-06-2017 14:21
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Hitesh
June 16, 2015 at 6:02 pm

Hi FINANCIAL HELP?
My father have taken home loan from hdfc but last month he expired so now as I m the
second applicant so I will decide to pay and close the loan so what should I do and care should

be taken? as there is no
Financial insurance cover on name of my father..
Planning

Buy Life Insurance


Manish Chauhan

June 27,Buy
2015 at 7:19
Health pm
Insurance
Check with the bank rst . Were you just a second bank loan holder or also you have


the house in your name ?
Invest in Mutual Funds

Goal Based Planning


Mitesh
June 7, 2015 at 1:44 pm

Hi Manish,
YES - I WANT HELP
Well explained article.
Thanks.

Kumar
June 3, 2015 at 7:13 pm

Hello Manish Chauhan,


Very important and useful, well presented with examples and sample documents

Manish Chauhan

June 8, 2015 at 2:05 pm

Welcome .. Glad to know that Kumar ..

20 of 36 20-06-2017 14:21
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kshitij
June 3, 2015 at 10:01 am
FINANCIAL
hey manish , HELP?
that was superb !!!


In my case , I have alsoPlanning
Financial taken loan from hdfc and they have also taken a undated ( but signed)
cheque from me ( for their security ) whose amount is equal to my loan amount .So my


question is , after
Buy iLife
repay my loan ,is there any chance for the bank to encash that cheque (
Insurance
even after i recieve a NOC from the bank .)

Buy Health Insurance

Manish Chauhan
Invest in Mutual Funds
June 8, 2015 at 2:20 pm

Yes, they can encash it they are evil . But I never heard about it . What you should
Goal Based Planning
do is , you should ideally block those cheques using their numbers or using their
date range from your banking portal . Most of the banks give that facility.

Also to be on
YES - safer
I WANTside, you
HELPshould take the cheques back from the bank once you
close the loan

Mansih

Sachin

June 3, 2015 at 5:26 am

Indeed a great check list. I have to keep this in mind while closing my loan. Thank you.

Manish Chauhan

June 8, 2015 at 2:22 pm

Thanks for your comment Sachin

Manoj
June 2, 2015 at 5:57 pm

Thanks Manishonce again very useful article!!!

21 of 36 20-06-2017 14:21
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Bala
DO YOU NEED
June 2, 2015 at 3:43 am
FINANCIAL HELP?
Hi Manish,

Thanks for the wonderful article.


I have recently closed an Home loan with Bank of Baroda. I did make an Equitable Mortgage
Financial Planning
with them and the EC shows that.


As i have closed the
Buy loan
Life , clear the Equitable mortgage with BOB ?
Insurance

Cheers
Buy Health Insurance

Bala Invest in Mutual Funds

June 2, 2015 at 3:25 am



Good article:
Goal Based Planning

http://10ways2everything.com/101-tips-to-home-loan-from-sanction-to-closure/

lots of info YES - I WANT HELP

Sunil
May 15, 2015 at 11:49 am

I have SBI CC the limit is 103000.which I used entirely and was paying Minimum payment
everymonth.Last 5 month I missed paying mimimum amount,Now the outstanding
129000.and they are asking for the settlement of 80000.

They are also telling that IF I pay 80K My name will re ect in CIBIL as Settled and I can clear
it off If I pay the remaining balance 49000.

Please suggest the best option

Manish Chauhan

May 29, 2015 at 3:29 pm

Yes, they are correct !

22 of 36 20-06-2017 14:21
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livarghe
May 2, 2015 at 6:22 pm
FINANCIAL HELP?
Hi Manish,

I have heard that SBI is giving Top-up home loan at the same interest rate of Home loan.Is it
true?.Will I get tax bene t if I use the top-up amount for interior work?
Financial Planning

ManishBuy
Chauhan
Life Insurance

May 5, 2015 at 7:27 pm


No , ForBuyinterior
Health Insurance
work you will not get any tax bene t

Invest in Mutual Funds

Goal Based Planning

YES - I WANT HELP

23 of 36 20-06-2017 14:21
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parag_aj
April 23, 2015 at 5:14 pm

FirstFINANCIAL HELP?
of all, a great and useful article. Thanks Manish!

I have few questions:


1. I have SBI Max Gian home loan and equiatable mortgage was done at the time of
Financial Planning
sanctioning. So should we ask to cancel the deed of that equitable mortgage? Can you please
explain what is the procedure (with SBI)?
Buy Life Insurance
2. Does SBI give Encumbrance Certi cate after cancellation of such mortgage deed?
3. I also have SBI Life Dhanaraksha Plus LPPT policy which is a decreasing balance insurance. I

read at severalBuy Health Insurance
questions above that we should also claim back the future premium amount if
we prepay the loan. Can you please share some info on this? Mr. Ramanan shared similar view.
Invest in Mutual Funds


Manish Chauhan
Goal Based Planning
April 23, 2015 at 10:05 pm

Hi Parag
YES - I WANT HELP
The question asked by you is beyond our scope. Its suggested that you hire an
expert on the issue and pay them for the advice.

Manish

parag_aj
April 24, 2015 at 3:13 pm

By the way, regarding point #3 above, I got it clari ed myself when I read
the policy document. It says that if the loan is fully repaid before the end of
the repayment term, then the insured person is entitled to claim the
surrender value at that time. They have a formula to calculate the
surrender value. So basically we get back some amount of future premium
when the loan is closed.

Manish Chauhan

April 24, 2015 at 4:20 pm

Hi Parag

Thanks for your sharing your valuable comment on this topic.


Please keep sharing your views in future also

Manish

Dinesh Gadpal
April 8, 2015 at 7:27 pm

Thanks! its very helpfull

24 of 36 20-06-2017 14:21
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DO YOU NEED
Gopi Periyasamy

FINANCIAL HELP?
April 7, 2015 at 1:12 pm

Thanks for the article.

Could you explain how to get Encumbrance Certi cate?

Financial Planning

Manish Chauhan
April 24,Buy Life Insurance
2015 at 7:06 pm

You get it at sub-registrar of ce in your city


Buy Health Insurance

Invest in Mutual Funds


yogi


March 30, 2015 at 5:53
Goal am Planning
Based
sir,
i had heard about RBI cutting home loan rates..i still dont see them getting re ect in my SBI
YES
NRI home loan - I WANT
account HELP
yets -they are still at 11%.
how long will it take to re ect in my home loan account-
do i need to follow up with SBI on this..i heard nationalized bank are quick with absorbing
these rates ..

Manish Chauhan

April 2, 2015 at 2:25 pm

Yogi

RBI never cuts the home loan rate, they only change the repo rate. Its the bank who
have to pass it on . Its the SBI issue, so check with SBI .

Deena
March 26, 2015 at 10:51 pm

Very good article

Anshudeep

March 24, 2015 at 10:48 pm

Very informative article.

Manish Chauhan

April 2, 2015 at 3:53 pm

Welcome .. Glad to know that Anshudeep ..

25 of 36 20-06-2017 14:21
4 things to complete when you Close your Home Loan http://www.jagoinvestor.com/2015/03/closing-home-loan-early.html

Arul
DO YOU NEED
March 23, 2015 at 5:14 pm

Hi, FINANCIAL HELP?


I had 2 credit card, personal and car loan. I closed my personal and car loan 6 month back. My
CIBIL score was 832 before closing loan and now it is 817 (832-817=15 is very less)
Financial Planning
is pre closing loan affect CIBIL score (I never used 20% of my credit card card limt), Just Im
asking
Buy Life Insurance

ManishBuy
Chauhan
Health Insurance

April 2, 2015 at 4:08 pm



No , it will
Investnot affect Funds
in Mutual !

Goal Based Planning

P
March 21, 2015 at 6:21 pm
YES - I WANT HELP
Hi,

We had taken loan from LICHFL, and then transferred that loan to a nationalised bank after
few months.

Do we need to get the NOC from LICHFL as well ? What will be the process ? Now more than
a year has passed since we closed our LIC account.

Thanks,
Pushkar

Manish Chauhan

April 2, 2015 at 5:01 pm

I dont think NOC is required just because your have switched !

P\
April 4, 2015 at 5:41 pm

OK. Thanks. Will keep it in mind while closing current loan account.

26 of 36 20-06-2017 14:21
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DO YOU NEED
varalakshmi
March 21, 2015 at 8:15 am
FINANCIAL
We took a home loan from SBIHELP?
Max gain for Rs. 25,00,000.00 for 20 years, on June 2013 at
10.25% interest rate.

Upto now we paid every month Rs. 25,000.00 EMI and also we paid excess amount Rs.

5,00,000.00
Financial Planning


Now we have Rs.
Buy15,00,000 for remaining years
Life Insurance

We want to change my interest rate 10.15% in the SAME S B I BANK BRANCH.



Questions:
Buy Health Insurance

1. Now Can i Proceed for that..


Invest in Mutual Funds
2. How much they will charge for changeing the interest rate.
Goal Based Planning
3. Can i change my EMI for Rs. 20,000.00

YES
Srinivas - I WANT HELP
March 21, 2015 at 9:28 pm

1. You can do that. Pl check with branch manager. Though RBI instructed that the
rates should be similar to all loans, banks discriminate old takers from the new ones
and generally charge a fee for changing from one to the other.

2. Bank manager will tell you.

3. EMI can be changed by altering the tenure.

That said, one needs to take a view after considering few things. Do you want to
keep the loan for the full tenure. If answer is yea, then can try for changing the rate.
But if you want to repay in another 2 or 3 years, this may not matter much.

Please check all aspects before taking a decision

varalakshmi
March 22, 2015 at 5:11 am

Thank u for reply. we will follow ur answer.

Manish Chauhan

April 2, 2015 at 4:59 pm

Welcome .. Glad to know that varalakshmi ..

27 of 36 20-06-2017 14:21
4 things to complete when you Close your Home Loan http://www.jagoinvestor.com/2015/03/closing-home-loan-early.html

learn
DO YOU NEED
March 20, 2015 at 6:32 am

sir, FINANCIAL HELP?


i currently have a loan with SBI that am close to paying it off.
a equitable mortgage was created as part of the loan sanctioning to create a lien on my

property,per requriement of the bank.
Financial Planning

after i close the loan, who is responsible for getting this lien cancelled and getting the

equitable mortgage
Buy Lifedeed document cancelledis it at the expense of the bank or the
Insurance
customer? what does the guidelines say..
Buy Health Insurance

Manish Chauhan
Invest in Mutual Funds
April 2, 2015 at 5:16 pm

Its the bank


Goal Based Planning

Srinivas YES - I WANT HELP


March 18, 2015 at 6:12 pm

A point, distantly related to this post.

Insurance on home loan. When a bank disburses home loan, they generally insist that the
borrower take an insurance for the value of the property. When the borrower is in a hurry, he
will not be able to decide and select best insurance cover and banks palm off sub standard
covers.

Also the insurance suggested will be reducing balance type. A better way will be to take a
constant value insurance at a competitive rate and provide the doc to the lender. This will not
only help good bargain but also can be discontinued when the lone is foreclosed.

Manish Chauhan

March 19, 2015 at 1:03 pm

Hey Srinivas

Thanks for sharing your experience with all of us. It was a great learning.

Manish

28 of 36 20-06-2017 14:21
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DO YOU NEED
GAURAV

FINANCIAL HELP?
March 17, 2015 at 9:28 pm

being a banker , i must say this a very good article . i want to just add my two cents- many
banks do insurance at time of loan and on prepayment say in 5 yrs or lesser some of your
premium is refunded. dont forget that also to claim at the end.
Financial Planning

ManishBuy
Chauhan
Life Insurance

March 17, 2015 at 10:08 pm


ThanksBuy
forHealth
sharing that Gaurav
Insurance

Can you share a bit more on that ? How does one get back some premium if they
Invest in Mutual Funds
prepay ?

Manish
Goal Based Planning

manoharan YES - I WANT HELP


March 17, 2015 at 8:11 pm

Thanks a lot

svj_27
March 17, 2015 at 5:23 pm

Manish

We also submit some 5-6 blank security cheques , signed cheques , i think
so that also need to get back , right ?

Manish Chauhan

March 19, 2015 at 1:32 pm

Hi svj_27

Yes. Good point, we should take that also back !

29 of 36 20-06-2017 14:21
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DO YOU NEED
ashok
March 17, 2015 at 4:28 pm
FINANCIAL HELP?
Hi manish,

Very useful article as 90% of the readers will use this article..

Financial Planning

Manish Chauhan
March 19,
Buy Life Insurance
2015 at 1:32 pm

Welcome .. Glad to know that ashok ..


Buy Health Insurance


K N RAO
Invest in Mutual Funds

March 17, 2015 at 1:39 pm


Goal Based Planning
really a good article, thanks a lot for that, hope to have more of that kind

YES - I WANT HELP


Manish Chauhan

March 19, 2015 at 1:34 pm

Welcome .. Glad to know that K N RAO ..

Gowrisankar
March 17, 2015 at 9:47 am

A Very useful article indeed.


At the time of closing the loan usually people are less careful, furthered by the euphoria of
having squared up a liabilityand most likely to be satis ed with the handshake and receiving
a closed envelope with presumably their original documents. Now, if all pages are there, in
good condition, whether there is other Lien and/or whether NOC is issued etc, atleast I was
oblivious till I read this article. Thanks a lot Manish.

Manish Chauhan

March 19, 2015 at 2:01 pm

Welcome .. Glad to know that Gowrisankar ..

30 of 36 20-06-2017 14:21
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DO YOU NEED
manojkumar pandey
March 17, 2015 at 9:39 am

This FINANCIAL HELP?


artical is very good for who is taking loans from , any banks.


ManishFinancial
Chauhan Planning
March 19, 2015 at 2:01 pm

Welcome
Buy ..Life
Glad to know that manojkumar pandey ..
Insurance

Buy Health Insurance

Dhaval Mehta
Invest in Mutual Funds
March 17, 2015 at 9:28 am

Thanks. Its a wonderful article.


Goal Based Planning

Manish Chauhan
YES - I WANT HELP
March 19, 2015 at 2:01 pm

Welcome .. Glad to know that Dhaval Mehta ..

V Priya
March 17, 2015 at 6:48 am

thank uu so much many I come to know now , its very usefull

VP

Manish Chauhan

March 19, 2015 at 2:01 pm

Welcome .. Glad to know that V Priya ..

Mayur Keni
March 17, 2015 at 5:38 am

Really Helpfull

Manish Chauhan

March 19, 2015 at 2:02 pm

Welcome .. Glad to know that Mayur Keni ..

31 of 36 20-06-2017 14:21
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DO YOU NEED
varalakshmi
March 17, 2015 at 5:11 am

thankFINANCIAL HELP?
u for valuable information


M.NAGESWARA RAO
Financial Planning

March 17, 2015 at 1:38 am


Buy Life Insurance
WHAT ABOUT SETTLEMENT OF INSURANCE FOR FORE-CLOSURES, AS THE ENTIRE
PREMIUM HAS BEEN PAID BY THE BANK OUT OF THE LOAN SANCTIONED/DISBURSED,
Buy Health Insurance
ADDED TO THE LOAN COMPONENT, AND RECOVERED,!!!

Invest in Mutual Funds


Ramanan


March 17, 2015
Goal at 2:16
Based pm
Planning
Nageswara Rao,

You have a valid concern. The insurance you talk about refers to the one covering
YES - I WANT HELP
risks of non-payment of loans for reasons such as disability or death.

In case of foreclosure of home loans, the borrower should ask for the refund of the
premium for the future period (i.e. from the foreclosure date to the maturity date
of the insurance policy). Here insurance companies have their own methods of
settling the amount and the amount one receives is at a heavy discount. My friend
recently foreclosed his 15-year home loan account in 6 years and the insurance
company quoted him somewhere around 40% of the insurance premium paid ( net
of service tax).

parag_aj
April 23, 2015 at 5:17 pm

Thanks Ramanan. I also have SBI Life Dhanaraksha Plus LPPT policy which
is a decreasing balance insurance. I read at several questions above that
we should also claim back the future premium amount if we prepay the
loan. Can you please share some info on this?

Can you please tell me how to get the future premiums? Is there any
speci c banking term we should ask for?

32 of 36 20-06-2017 14:21
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DO YOU NEED
Chandrashekhar N

FINANCIAL HELP?
March 16, 2015 at 9:30 pm

Very important & useful information for Home loan takers


Tanks for the Information

IF A
Financial Planning
N J Silver partner
Mysore
Buy Life Insurance

ManishBuy Health Insurance


Chauhan

March 19, 2015 at 2:04 pm


Invest in Mutual Funds
Welcome .. Glad to know that Chandrashekhar N ..

Goal Based Planning

Ramanan
March 16, 2015YES
at 9:03-pm
I WANT HELP
Thanks for the info, Manish.

Some more points ( apart from the ones you mentioned):

1. Cancellation of ECS mandate for monthly EMI payment;


2. If the property is insured for risks like re, ood etc., with the nancing bank having the
rst lien, get a letter from the bank addressed to the insurance company lifting the lien so
that the bank has no right whatsoever in the insured property. Also follow it up with the
insurance company to remove the banks name in the insurance document.

Manish Chauhan

March 19, 2015 at 2:04 pm

Hi Ramanan

Thanks for adding those points .

R K Kaushik
March 16, 2015 at 8:33 pm

Thanx manish.as always ur articles are really of great help and practical

Manish Chauhan

March 19, 2015 at 2:06 pm

Welcome .. Glad to know that R K Kaushik ..

33 of 36 20-06-2017 14:21
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Atul
DO YOU NEED
March 16, 2015 at 5:08 pm
FINANCIAL HELP?
Hi Manish,

What a coincidence. I will be paying the last EMI next month and this article is what I was
looking for.
Financial Planning
Thanks a ton.

Regards Buy Life Insurance

Atul
Buy Health Insurance


ManishInvest
Chauhan
in Mutual Funds

March 19, 2015 at 2:09 pm



Hi AtulGoal Based Planning

Great to know that Atul !

YES - I WANT HELP

Amit
March 16, 2015 at 12:41 pm

Thanks Once again for such a good article

Cheerss

Divya shah
March 16, 2015 at 10:18 am

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Financial Planning

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Goal Based Planning

YES - I WANT HELP


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Goal Based Planning

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