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Sundaram BNP Paribas Home Finance was started in the year 1999 to enable housing finance to individuals and businesses. This joint venture between Sundaram Finance Limited and BNP Paribas Personal Finance has since successfully disbursed many home loans and helped individuals buy their dream homes. Trust and a transparent process is the plus points of Sundaram BNP Paribas Home Finance. These are within easy reach of most borrowers with many branches in the country.
Types of Sundaram BNP Paribas Home Finance
|Name/type of home loan scheme from Sundaram BNP Paribas Home Finance||Applicability||Processing Charge||Pre- payment charge||Tenure|
|Housing Loans||1) Middle income groups
2) High- income groups.
A. New home/Flat
B. Building a dwelling unit
C. Construction of an additional floor or room to existing house
D. Balance Transfer
E. Renovation (External & Internal)
F. Residential Plot Loans
G. Takeover loans: To pay off existing loan with another financial institution and transfer to Sundaram BNP Paribas
|1) Salaried individuals
2) Self- employed individuals3) NRI’s
B. Self employed
20 years or retirement age, whichever is earlier
15 years or 65 years, whichever is earlier
15 years or retirement age, whichever is earlier
|Land Loans|| A) Salaried individuals
B) Self- employed individuals
10 years or retirement age, whichever is earlier
10 years or 65 years, whichever is earlier
10 years or retirement age, whichever is earlier.
How to close Sundaram BNP Paribas home loan through Creditseva?
Creditserva eases the process of closing a home loan for its customers through their expert personnel and efficient service. Home loan closure decision can be influenced by many factors, and this can be voluntary or necessary. A voluntary home loan closure will make the borrower the sole owner of his home while taking away the added burden of paying off at regular intervals. However, there are some guidelines that need to be followed for a seamless closure.
There are some mandatory steps that need to be followed when closing a Sundaram BNP Paribas home loan. Creditseva will provide you dedicated assistance for successful closing of your Sundaram BNP Paribas home loan, so you have peace of mind. We require from you these simple formalities-
- You need to log on and sign up to your Creditseva user account
- Follow the guidelines offered by our financial experts
For all the above mentioned Sundaram BNP Paribas home finance, loan closure process follows the same steps: Normally, there are two ways to carry out the home loan closure on a voluntary basis:
- Closure through Loan tenure completion
- Closure through Loan prepayment
Involuntary or Enforced loan closures may sometimes need to be made, they include:
1. Closure on account of bad loan
2. Closure through loan settlement
1. Closing a loan at the end of its tenure:
As a borrower after diligently making payments over the years and reaching you have come to the end of your loan tenure. Once you pay off your last EMI, you need to send a letter to Sundaram BNP Paribas Home Finance, informing them about the end of the loan term with a request for return your original property documents. Sundaram BNP Paribas will respond promptly and also issue a closure letter for your loan. You can then personally collect the property documents and complete any other formalities as necessary.
2. Closing a Home Loan by prepayment:
It is always prudent to prepay part of your home loan to reduce the EMI or reduce its term. If you have the funds and decide to make a prepayment of your Home Loan, you must thoroughly check your pending loan amount with the bank. Provide the bank accurate details and ask the bank to calculate all your outstanding dues as on that date. Inform Sundaram BNP Paribas well in advance so they can go ahead and make the calculation of the outstanding amount. If you have issued post dated cheques, take them back after prepayment of the loan.
Important things to remember for Home Loan closure
1. Collect an NOC
Once you have successfully made all the payments towards your home loan, request Sundaram BNP Paribas to issue a no objection certificate (NOC). The NOC must state your name, property address and loan account number very clearly. The NOC should also mention that all dues have been paid and Sundaram BNP Paribas has no claim on your property anymore.
2. Initiate Return of Original docs
It is essential to ask Sundaram BNP Paribas to return all original documents which you have given the bank while taking a loan. Banks generally provide a list of documents they have taken from you at the time of loan disbursal. Use that as a checklist to ensure the bank has returned all the submitted documents. Also, make sure that no part of any of your documents is missing. Only once you are satisfied, sign an acknowledgment saying you have received all original documents from the bank.
3. Lien removal
Check with your bank if they had put a lien on your property for the loan. If yes, then you need to approach the registrar office with the bank NOC and get the lien removed from your property.
4. CIBIL Score update
Write a letter to the bank to inform CIBIL about your successful loan closure. This is good for your CIBIL score; check your CIBIL score to see that your Credit Score has improved after the loan closure. The financial institution normally isn’t interested in its own to update CIBIL scores either during repayment or loan disbursement. Banks need to be reminded to inform CIBIL as they may delay or forget to inform CIBIL about your pre-closure.
- Closure on account of bad loan
Sometimes the loan borrower is unable to repay the borrowed loan amount, and the repayment becomes doubtful. The bank usually writes off these as bad loans. Visit the bank or write to the bank of your inability to repay the loan amount.
Sundaram BNP Paribas will then follow the necessary procedures to settle the loan or write it off. The bad home loan settlement will reflect in borrower’s bank account as written off. Obviously, this will have a negative impact on the borrower’s CIBIL Score.
- Closure through loan settlement
A settlement of loan happens where dues are outstanding for a long time. Banks usually will wait for 3 months to assess the repayment possibility. If the amount cannot be recovered still, the loan account is termed as Non-Performing Account or NPA, and the borrower is a ‘defaulter’ until settlement of the loan. A loan settlement always impacts negatively on CIBIL score in the short term.
The home loan settlement will reflect in the bank account statement until the full repayment. The banks will usually restructure the loan and use other options to may it easier for the borrower to repay the loan. Once the home loan is settled, it will reflect as ‘settled’ in a bank account.
Other important pointers
- Borrowers can pay a personal visit to any Sundaram BNP Paribas branch for prepayment or end of tenure closures. It is not necessary to visit the same branch that issued the loan.
- It is advisable to visit the bank for loan prepayment on a weekday as most often Sundaram BNP Paribas might not offer assistance on weekends.
- Once at the branch, there are many formalities that have to be completed for Loan closure.
- To understand the mandatory requirements, detailed discussions with a bank representative is helpful.
- Fill out a disclosure form. In the form mention all sources through which the prepayment will be made.
- Once you give the prepayment in cheque form, the bank issues a receipt. Request an amortization sheet, which has all details of the EMIs paid till date. You can get it personally or through email.
- Subject to the release of prepayment, the property deed file is couriered to Sundaram BNP Paribas by the registrar.
Sample letter for closure of Sundaram BNP Paribas home loan
Sundaram BNP Paribas Home Finance
[Address of the branch where loan closure was done]
Subject: Home loan closure request
I, [Your name] had a home loan issued under my account number – […………………] which I have successfully repaid. No dues are pending. Please see attached the proof of my last EMI paid. I request you to initiate the closure and confirm the same with a letter of acknowledgment authorizing the successful loan closure. The documents which need to be collected back after closure acknowledgment:
- Original Property Documents
- Loan closure Certificate or NOC/NDC
- CIBIL score update
Thanking you for your assistance,
List of important documents that are received on home loan closure
1. Property Deed
2. (LOC) or NOC
4.Promissory Note & thank you letter.
Sundaram BNP Paribas Home Loan Closure FAQs:
1. What is EMI?
EMI is the short form for Equated Monthly Installments and is made of both principal and interest components. EMI calculators are an easy way to find out your monthly payments based on the loan amount, the rate of interest and the repayment period.
2. Can I prepay the loan? Are there any penalties?
Yes, prepayment of the loan can be made at any stage. There is no pre-closure/ prepayment penalty applicable on Sundaram BNP Paribas floating rate Home Loans.
3. What is a CIBIL score?
A Credit Score or the CIBIL Score gives a borrower his or her credit rating, represented by a three-digit number. This score is based on your credit history, payments, defaults, payment patterns, etc. with credit institutions over a period. Basically, it describes your credit worthiness.
4. What is Lien?
A lien means the lender (Bank or financial institution) will keep the right to sell the property if the borrower is unable to repay the loan. Normally, most banks will not put a lien on a property, because through credit verification is conducted and also original documents are kept with them. But on some occasions, the bank may put a lien against your loan.
5. Which is the most popular Home Loan finance institution?
Sundaram BNP Paribas Home Loans is one of the most consumers friendly by the public across the country. Efficient service and competitive loan rates give it an edge over others.
6. Does home loan EMI change in case of prepayment?
BNP Paribas allows prepayment with zero charges and there is no penalty for their floating rate home loans. The outstanding amount on your home loan will reduce after prepayment. A borrower may then decide whether to keep the EMI constant and reduce the loan period or reduce the EMI and keep the loan period the same. Experts suggest that to reduce your interest, it is better to keep the EMI constant and reduce the loan period.
7. How can I know my EMI?
Simply use the online EMI calculator avaible on the site of Sundaram BNP Paribas.
8. What is a floating rate of interest?
When your interest rate on home loan changes with the changes in market lending rates, it is called a floating rate of interest.
9. Does BNP Paribas have any prepayment conditions?
Part prepayments can be made, however, there are conditions that must be complied with. One is that you can make only three such part payments in one financial year and the amount prepaid each time should be equal to not less than a total of 6 EMI’s.
10. Do I get a tax benefit on Home Loan?
Yes, under Section 80C & 24(b) of the Income Tax Act, 1961, you can avail tax savings on both, the principal and interest components of the EMI you pay on Home Loans, except plot loans.
11. How can I know if I’m eligible for Sundaram BNP Paribas Home Finance?
You can go to their website and use their loan eligibility calculator and determine your eligibility for a Home loan.
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