To close your loan account with the Central Bank of India, you should visit the branch, pay off all outstanding dues and submit the account statement with zero outstanding. The bank will take your request, close the account and give you a NOC (No Objection Certificate) to that effect.
There are two reasons to close a loan account; you have paid all the EMIs and the outstanding is now zero. Or, you want to pay the loan amount in advance and pre-close the loan account.
Closing your loan after paying all the EMIs
- Usually, once all the EMIs have been paid, the bank will send you a message to come to the branch for the closure formalities.
- You will be required to bring in the original loan document, your identity proof and the latest loan account statement to complete the process.
- Once the loan account has been closed, you will be handed over any original document with the bank and a NOC stating that the loan has been closed.
Pre-closure of a loan
- You may choose to pay the total outstanding as a lump sum and pre-close the loan.
- In such cases, you need to go to the bank and find out how much you need to pay to pre-close the loan.
- The bank will calculate the total outstanding with pre-closure charges and give you the amount.
- You need to pay this amount at the bank and get the updated loan account statement with zero balance.
- Once you submit the documents, the bank will close the loan and give you a NOC.
Also Read All You Need To Know About Pre Closure Of Loans
Note: You have to contact the bank branch before you close the loan account. Closure of loans may incur some charges which have to be paid for the loan account to be closed completely and generate a NOC for you.