Steps to cancel your home loan

Here are some steps to cancel your home loan
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Steps to cancel your home loan
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3 min
10-September-2024
Home loan cancellations can occur for several reasons, including a change in financial circumstances, finding a better loan offer, or disapproval due to credit issues. To cancel a home loan, borrowers need to follow specific procedures, either online or offline, and provide necessary documents such as loan approval letters, identity proof, and a cancellation request form.

Common reasons for home loan cancellation

  • Home loan cancellations often happen due to various reasons such as:
  • Change in financial status, making it difficult to repay the loan.
  • Finding a more favourable loan offer from another lender.
  • Disapproval or rejection of the loan application due to low credit scores or incomplete documentation.
  • Changes in the borrower’s plans, such as deciding not to purchase the property.

How to cancel a home loan?

Cancelling a home loan involves following specific procedures. It can be done through online or offline methods. Each method requires submitting a cancellation request along with the necessary documents. Understanding the process ensures a smooth cancellation.

Online methods for home loan cancellation

  • To cancel your home loan online, follow these steps:
  1. Log in to your bank’s online portal using your credentials.
  1. Navigate to the 'Loan Services' section.
  1. Select 'Cancel Home Loan' and fill out the cancellation request form.
  1. Upload the required documents such as loan approval letter, identity proof, and any other necessary documents.
  1. Submit the request and await confirmation from the bank. Check your loan details for specific instructions.

Offline methods to cancel home loan

Via Customer care

  1. Call the bank’s customer care number.
  1. Provide your loan account number and request loan cancellation.
  1. Follow their instructions and submit required documents via email or post.
Via Branch visit

  1. Visit the nearest bank branch.
  1. Request a loan cancellation form from the customer service desk.
  1. Fill out the form and submit it along with the necessary documents, such as your loan approval letter and identity proof.
  1. The bank will process your request and notify you of the cancellation status.
For managing your home loan and making online EMI payments, ensure you are aware of all the steps and requirements.

Frequently asked questions

What is the procedure to close a home loan?
To close a home loan, obtain a closure statement from your lender, pay the outstanding balance and any foreclosure charges, submit a closure request, and receive a No Objection Certificate (NOC). Ensure the lien on your property is released and your property documents are returned.

How to pay advance emi for home loan?
To pay an advance EMI, log in to your lender’s online portal or mobile app, navigate to 'Loan Services' or 'Payments', and select the advance EMI option. Enter payment details and complete the transaction. Alternatively, visit your bank branch to pay in person.

What are the foreclosure charges for Home Loan?
Foreclosure charges vary by lender and loan terms, typically ranging from 2% to 5% of the outstanding loan amount. Review your loan agreement or contact your lender for specific charges.

How to change Home loan interest rate?
To change your home loan interest rate, negotiate with your current lender, switch to a different lender with a lower rate, or convert to a different rate scheme within the same lender for a nominal fee. Evaluate costs and benefits before making changes.

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