Loan customers may think possibility of transferring loan to more customer friendly bank, sometimes, reasoning better interest rate, relaxation of fine imposing etc. When they think about taking a loan, there may not have studied various bank's terms, conditions, policies.
After starting repayment of some instalments, they would have learned about their bank's merits and demerits. If another bank has better offer, they can transfer loan to another bank, if current bank allows and economically beneficial.
These documentation is applicable not only to SBI but almost all banks functioning in India. Though list is considered as general requirement, slight variation / addition are applicable depending on the nature and type of banks.
In general, following are the documents initially takeover bank seeks.
- Original Sanction letter of financier.
- A/c statement of the financier for entire tenure of the loan.
- Copy of title papers in the name of applicant.
- Possession certificate –where house is complete, and repayment has started.
- Detail of interim security (preferably fixed deposit of relatives or friends equivalent to loan amount).
- Foreclosure letter.
- List of documents held by the financing institute.
- Letter undertaking to issue NOC, from the current lender bank / financier.
- Project cost will be sale deed + stamp paper + prepayment penalty.
OTHER: Cheque for NEC / Valuation / IT verification fee and processing fee.