What is the process to close an SBI home loan when living in abroad? The original documents are submitted at an SBI RACPC

You may feel a sense of relief when you close your home loan, after months and years of paying the EMIs. Before we sit back and relax, there are few final steps we must perform to close home loan and collect documents from SBI.

Considering that you have geographical constrain, living in abroad, let us suggest six step process:

• Closure of Home Loan
• General Power of Attorney (GPA)
• Document Collection
• Registration
• Encumbrance Certificate (EC)
• Dispatch

Let us give the description with illustrations and examples for your better understanding

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1.Closure of Home loan:

In your SBI mobile banking or Internet banking, you have option of “Closure of Loan A/C”. In that, select the loan account you wish to close and pay the final settlement of your loan outstanding due.

Once the full and final settlement of home loan is paid. write an email to your SBI branch that you intend to collect back original title documents.

The SBI will email closure letter, the closure letter looks like below image

Along with closure letter, SBI provide the date, time and RACPC address to collect title documents

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2. General Power of Attorney (GPA)

You must visit the RACPC for collection of original title documents.

Since you are living in abroad and if you cannot come to India for collection of documents, you can give GPA to your trusted source in India for collection of documents on your behalf.

Write an email to SBI that you are living in abroad and you want to collect the documents through GPA. Please specify in email that you are living in abroad because GPA template is different for Indian resident and overseas resident. The SBI will share the suitable GPA template and affidavit template in word document

• Fill in the required details in GPA and affidavit template, the details includes your name, age, current address, loan account number and address of the scheduled property in which the home loan was taken.
• Print the GPA and Affidavit on A4 size paper
• Sign the GPA and Affidavit in-front of notary
• Get the notary attestation in GPA and affidavit

Courier the following documents to your GPA holder in India:

• GPA (Signed and attested by notary)
• Affidavit (Signed and attested by notary)
• Self attested PAN, Passport/OCI

In India, GPA holder adjudicate GPA in Registrar office

Let me give a real example and share the images for your understanding:

One of my client lives in Virginia, USA. Husband and wife jointly borrowed the home loan of Rs.54,27,000 for a property purchase in Bangalore in 2020. My client recently closed the home loan and collected the closure letter from SBI through email. Husband and wife jointly gave GPA to their friend in Bangalore for collection of documents

Below is the GPA image

The executant mean, the person who grands the GPA. The Stamp Duty for GPA adjudication is Rs. 200 per executant. In our above GPA, Husband & wife are two joint executant, total stamp duty is Rs. 2*200=400

Below is the GPA adjudication image

Below is the affidavit image

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3. Document Collection:

As per the appointment given by SBI, The GPA holder carries following documents to RACPC for collection of title documents

• Loan Closure letter
• GPA
• Affidavit
• Self attested ID proof of Executant (the person who grands the GPA)
• Self attested ID proof of GPA holder (the person who receives the GPA)

In RACPC, the SBI staff verifies the above listed documents and retain the original GPA, Affidavit and self-attested ID proofs. (we mean, you will not get back your original GPA and affidavit. You should retain the softcopy or photocopy of GPA for Reconveyance deed registration later in sub-registrar office)

The SBI staff prepare the check-list of title document and get the GPA holder signature in check-list, Refer to below check-list

The SBI staff handover following documents to GPA holder:

• Title documents (as listed in your check-list)
• Exemption letter (Section 88- SBI exempted from personal appearance in sub-registrar office)
• Reconveyance deed
• Self attested ID proof of bank’s authorized signatory

Reconveyance deed should have the details of borrower’s name, GPA holder’s name, loan amount, MODT document number, property schedule, the property schedule includes flat number, Survey number, apartment name, village name, Taluk, Hobli and district

(Based on my personal experience, sometime SBI may miss-out the GPA holder’s name or provide incomplete property schedule in reconveyance deed. Due to such mistake, sub-registrar office may not accept for registration, we had to travel back to RACPC for rectification. We can avoid such hassle if we cross-check all the information in Reconveyance Deed at the time of document collection itself)

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4. Registration:

At the time of borrowing home loan, we registered MODT in sub-registrar office, It means that we registered the mortgage lien against the property in sub-registrar office,

To remove that mortgage lien, we should register the reconveyance deed in same sub-registrar office where we registered the MODT earlier.

To register the Reconveyance Deed in sub-registrar office, we need following documents:

• Exemption letter issued by SBI
• Reconveyance deed issued by SBI
• GPA Photocopy (SBI took the original GPA)
• ID proof of authorized signatory from SBI
• Your ID proof

In below, we shared the image of exemption letter, we highlighted the section 88.

In below, we shared the image of registered Reconveyance deed, we highlighted the borrower name, GPA holder’s name and Property Schedule

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5. Encumbrance Certificate (EC):

After Reconveyance deed registration, extract latest Encumbrance Certificate and cross-check the removal of mortgage lien against the property.

For Example:

Immediately after Reconveyance Deed registration, we extracted below EC

In EC, bank’s name in Column 5 and my client name in Column 6. It mean that we successfully removed the mortgage lien registered against the property.

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6. Dispatch:

Your GPA holder can pack the following documents in an envelope, over the envelope seal with DHL or FedEx envelope for international dispatch.

• Title documents
• Registered Exemption letter and Reconveyance Deed
• Encumbrance Certificate
• Photocopy of GPA

International shipment cost ~ Rs. 3,000 Ex-globe, less than 1kg.

In our example: My client’s parents are living in Kolkata, my client instructed us to dispatch the documents to Kolkata instead Virginia, USA. We wrapped the documents in bubble wrapper, over above we sealed with thread lined envelope and dispatch through BlueDart courier. The package reached the Kolkata in 1 day in good condition.

The BlueDart costed Rs. 250/-, package was less than 1Kg.

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Note :

• Usually SBI give appointment in 15 days from the day of collecting loan closure letter, you can use this gap to execute GPA. We mean that you can start working on the GPA once after you get appointment from SBI
• As per my knowledge, SBI gives the tolerate of 30 days in appointment, we mean that if you are not able to collect document as per the appointment given by SBI, still you can approach the RACPC on next working days for document collection. In case if you are not able to collect documents even after 30 days of scheduled appointment day, you may have to get appointment again from SBI branch
• We should register the reconveyance deed within 90 days of Reconveyance Deed collection from SBI. If 90 days laps, we can rectify the date with SBI and proceed with the registration
• One GPA suffice for document collection and reconveyance deed registration, two different GPA is not require. we can give GPA to any of your trusted source that includes family members or non-family members
• Before SBI staff handover the documents to your GPA holder, SBI staff may call you through registered mobile number or ask you to write an email to RACPC through your registered email ID for cross verification. (Incase you are living in USA, you may have to awake for a moment until the documents are handed over to GPA holder because SBI may contact you for confirmation)
• Based on my personal experience, few SBI branch may not respond to call, email or respond late. At such situation, you may need a local guide to liaison with SBI and expedite the process, we assist in filling such gap. We provide end to end ground assistance including bank liaison, GPA, Document collection, Registration, EC and Dispatch

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