Though there are various blogs/articles on closing a SBI Maxgain home loan account, I am sharing my experience of closing the account in a record time of 1 day. Considering I managed to do this while banking with SBI, I think of this as an achievement and hope this information will benefit some in many ways.
1. You must have enough money in your account to completely pay off the loan.(without selling your kidney or the likes)
2. Your SBI savings account must be linked online to SBI Maxgain (Overdraft) account.
- Transfer balance amount from SBI savings to Maxgain (Over draft) account, so that book balance is equal to 0. Note here that this does not mean that you have repaid the full amount. The bank still needs you to pay the balance accrued interest to be paid till the date when you actually close the loan.
- Go to home branch which has processed your home loan. If you are not available, you will need to send a person with Power of Attorney (POA) and tell them that you are here for SBI Maxgain Home loan closure.
- The helpful(depends on your luck) SBI personnel will tell you to write an application on plain paper addressed to the Branch manager saying you want to close the account (mention all account numbers here- savings, maxgain and Suraksha insurance). They will also tell you the interest payment amount.
- Most likely you will also have a Suraksha insurance by the bank with the home loan. Make sure to mention the insurance account number in the letter too for closure.
- If you have an savings account with the same branch, you can sign a debit note to deduct the balance interest amount from savings – for maxgain as well as the Suraksha insurance account (Alternative is pay by cash or cheque – the process waits till the cheque gets cleared)
- SBI personnel will then put up a request in the system to remove any Lien on your account.
- Once the lien is removed, the SBI personnel can now start the process of closure in the system.
- This includes marking the account as CLOSED and stopping any EMI’s that might be coming in.
- Bank will give you 2 letters- NO DUES saying loan has been paid in full and other addressed to RACPC saying loan is closed and original property papers may please be handed over.
- Visit the RACPC and handover the letter to them. They will verify your identity by seeing the I cards in original. All loan applicants must be present in person to take handover of the documents. They will locate the original file by the loan account number. Expect some waiting time here depending on the load at the center. Sign the handover document, but ensure all property pages are in order and not missing.
- Sign the handover, take the property documents and go home debt-free. You are now the ACTUAL Owner of the property.
- Enjoy the evening. Such a day does not come often in everybody’s life.
- P.S:- This experience is with SBI Pune branches. Your experience may vary depending on your city. But overall, I was quite pleased with the positive, customer oriented service by SBI. The bank has indeed come a long way!!!