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State Bank of India is one of the popular banks that provides the plethora of loans and the Personal loan is one among them. State Bank of India Personal Loans is provided at best and competitive interest rates. SBI Personal Loans are instantly approved when you provide a proper documentation and in a very less time.
Closing a State Bank of India Personal Loan: Closing your SBI Personal Loan is a good decision If you want to save on the interest that you have to pay for the rest of the principal amount and you want to decrease your burden related to debt.
Let us discuss about the procedure related to closing SBI Personal Loan
The procedure includes two steps
- End of the tenure Loan Closure
- By Prepayment Loan Closure.
- End of the tenure Loan Closure: Your Personal Loan account will be closed by the State Bank of India if you have done the payment related to the entire term of the loan. Furthermore, if you are focusing towards closing your Personal Loan of State Bank of India, have to communicate to the bank your intention of closing the Loan.
- Except for SBI Rent + Loan in which only 1% of outstanding amount is applicable. Furthermore, there are no pre-closure / Pre-payment penalty charges are applicable as pre-payment penalty.
- An acknowledgement is provided by the bank, when you pay to the bank with the cheque, cash or demand draft and this has to be kept with you securely till the final closure of the loan.
- If you are wondering when the EMI will get deducted, if at the instance of the time period between Closing date related to loan and EMI date is close. In this scenario, the EMI will still get deducted and in a time period that is stipulated, the EMI that is reduced will be given back to you.
- Your Personal Loan account will be closed by the State Bank of India, once you have paid for the complete term of the loan.
Documents that are needed:
- The amount that has to be paid by Cash/Cheque
- Photocopies related to ID proof
- Personal Loan Account number.
- By Prepayment Loan Closure – This is another procedure for closing your Personal Loan. Before the end of the respective loan tenure, if you have done payment related to the entire amount of your loan account, it is known as prepayment.
- As prescribed by the banks regarding the number of EMIs and paying them, you can go for personal loan prepayment.
- The fee related to prepayment is calculated by opting the lowest of either percentage of interest that is outstanding for the tenure of the loan that is unexpired or the Principal amount related to Loan.
- The prepayment is then decided based on the lowest amount of the two.
- The prepayment process begins by you going personally to the bank. You have to take a print out of a bank statement that will have a record of all transactions related to Last EMI’s payment. You have to draft a letter with the signature of the loan applicant, mentioning about the balance amount that has to be paid and PAN Card details should be provided to the bank in writing.
- When you go to the bank for the purpose of closing the personal loan you have to carry a copy of statement related to prepayment.
- The loan payment can be made through, demand draft, cash or cheque.
Step by step procedure for closing a SBI Personal Loan
1. Initially, you have to call the State Bank of India to their customer care number 1800 425 3800 and enquire about the procedure for closing your Personal Loan.
2. Another step is to check with the concerned branch related to the bank in the city where you can personally go and close the personal loan.
3. You have to make sure that you are carrying all the required documents that are vital to close your Account related to State bank of India Personal Loan.
Steps for Pre-Closing SBI Personal Loan
From the date of your first EMI until a period of 12 months, there is no pre-closing allowed.
Prior to Pre-Closing at least one week before, you have to intimate the bank.
- Firstly you have to update the SBI bank that you are willing and intend to make a full Pre-Closing. After the completion of the specified time period, your loan pre-closure statement is issued by the bank to you.
- Prior to the date of next EMI, you should provide the full pre-closing cheque to the branch of the bank.
- The payment related to the pre-closure can be made either by Demand draft, Cash or cheque after the communication of one week time period.
- Once the processing of pre-closure is done, the closure of your personal loan account is completed.
- After all the process the cheques and No Objection Certificate (NOC) is provided to you, which are collected at the time of opening the loan procedure.
List of the important documents that you have to provide
1. The original Proof related to Address, ID and their respective Photo copies.
2. Amount related to Loan that has to be paid by cheque or cash
3. Personal Loan Account number
4. There is a myth among many that you need to pay the amount related to loan from your account only. You can pay the amount related to loan by using your relatives or friends accounts also.
5. Your next EMI will not be written off if you are going to the close the loan earlier to the 14th of the month and you have to opt for a proper closing date. If you are planning to close your personal loan after 14th of the month, then with EMI, your loan account is going to be debited. However, within seven working days, you will get back your amount.
After completion of all the steps related to loan closure, you will receive a letter of acknowledgement. Furthermore, you will receive a final agreement of loan closure after some days of closing the personal loan.
Sample letter # 1 for State Bank of India Personal Loan Closure
The Bank Manager,
State Bank of India,
Address of the State Bank of India Branch (From the branch where you have taken the loan)
Subject – Closure of State Bank of India Personal Loan & Loan #……….
I want to inform you that I am willing to close my State Bank of India Loan bearing account #……. Furthermore, I do hereby request you to kindly close this loan account. Following are the details for your reference
Contact Number #
Date of Loan taken
You can contact me on my mobile phone number for any queries related to this loan account.
Sample Letter # 2 for State Bank of India Personal Loan Closure
State Bank of India,
Complete address of the Branch (From where you have applied and taken the loan)
Subject – Closure of State Bank of India Personal Loan
I am (Your name) bearing Personal Loan# of State Bank of India Personal Loan and I want to close my Loan at the earliest. After closing my account online or offline I request you to kindly send me the documents and acknowledgement that I had provided to the State Bank of India Bank in getting approval for my Personal Loan. Furthermore, I request you to send me NOC (No Object Certificate) after my successful Personal Loan closure.
Following are my contact details.
Your Full Name,
Your email Id
Your Phone Number
Thanking you for your kind help and guidance.
SBI Personal Loan Closure FAQ’s:
1. How the balance amount or outstanding amount is calculated?
The amount that is required to pay is calculated as follows.
Total Amount that you have to pay = Principal Amount + Foreclosure charges if any + Service Taxes if any on Foreclosure Charges + Amount related to the interest for the balance days.
2. Is there any part-prepayment feature available for my Personal Loan?
No, there is part prepayment feature.
3. To pre-close my loan account can I make with the cash payment?
Yes, but it advisable to use other forms of payment. For example cheque or Demand Draft
4. Why obtaining NOC is so vital after you complete the process related to Loan closure?
Obtaining No Objection Certificate (NOC) is very vital, the reason being it proves legally that your personal Loan has been successfully closed.
5. For a pre-closure confirmation, how much time does it usually take?
Usually, to receive the confirmation related to pre-closure it takes a time of 15 days.
6. If you have not received the pre-closure confirmation what should I do?
You have to follow-up by using the receipt of pre-closure acknowledgement if you have not received the pre-closure confirmation.
7. If your next EMI is arriving soon and what will happen to my loan closure request?
Your Loan Closure request will still be processed although your next EMI is about to arrive soon.
8. Why my closed account is sometimes tagged as settled instead of not closed?
If your loan account is tagged as settled you have to verify with your lender what the reason behind that is. One of the reasons might be that you haven’t paid entire amount that is outstanding or might be a delay that bank has not updated about loan closure to the Credit Bureaus.
9. How the State Bank of India Personal Loan is finally closed?
You will receive the final agreement for Personal Loan Closure through the mail by the bank, after the completion of all related legal formalities.
10. After closing your State Bank of India Personal Loan account what is the vital thing to do?
The vital thing to do is to check your credit score and also check for errors if any. This is the good practice as it will help you if you are planning to opt for any loans in the near future. A good credit score helps you to increase the possibilities of Loans with best interest rates.
11. When my Personal Loan account is closed when can I receive No Objection Certificate?
Within 15 days of the time, you will receive your No Objection Certificate (NOC).
12. What are Pre-Closure Charges for State Bank of India Personal Loan?
There are no charges for Pre-closure / Prepayment except for Rent Plus in which 1% of the outstanding amount is charged.
13. In Personal Loan, is part Payment is Allowed?
Most of the banks don’t allow personal loan part payment. One has to pay loan in full to foreclose loan.If you are planning to prepay the loan and get benefitted by paying less interest, then sign up to Creditseva. Our team of experts will help you to close your personal loan in a simple and easy way.
Personal Loan Closure By Banks
- Personal Loan Closure
- Axis Bank Personal Loan Closure
- Andhra Bank Personal Loan Closure
- HDFC Bank Personal Loan Closure
- ICICI Bank Personal Loan Closure
- SBI Personal Loan Closure
- Citibank Personal Loan Closure
- Bank of Baroda Personal Loan Closure
- Capital First Personal Loan Closure
- Allahabad Bank Personal Loan Closure
- Fullerton Personal Loan Closure
- IDBI Bank Personal Loan Closure
- IndusInd Bank Personal Loan Closure
- Standard Chartered Bank Personal Loan Closure
- Tata Capital Personal Loan Closure
- Union Bank Personal Loan Closure
- Bajaj Finserv Personal Loan Closure
- Kotak Bank Personal Loan Closure
- Yes Bank Personal Loan Closure
- SBH Personal Loan Closure
- HSBC Personal Loan Closure
- Oriental Bank Personal Loan Closure
- RBL Bank Personal Loan Closure
- PNB Personal Loan Closure
- J&K Bank Personal Loan Closure
- IOB Personal Loan Closure
- Karur Vysya Bank Personal Loan Closure