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Loan Closure Request Letter

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Price
₹99 · GST included

₹99

GST included

Launch period: downloads are free for now. The prices shown apply once payments open.

Guided questions, full draft on screen, download in Word.

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Also called

  • Foreclosure request letter
  • loan pre-closure letter
  • loan account closure application
  • request for NOC and No Dues Certificate from bank
  • letter asking for foreclosure statement
  • request to release title deeds after loan repayment

Whether you can fill this in here

You can fill this in here

You can fill this one in on this site, and read the whole draft on screen before you decide anything about it. It is a carefully drafted template; it is not advice about your own facts.

Fill this one in
Why you need it

When you need it

Close a loan with a bank, SFB, co-op, NBFC or HFC properly — before paying, with payment, or after paying with nothing back. Asks for a foreclosure statement to a named date, the payment mode, then everything owed back: NOC, final statement, title deeds, CERSAI satisfaction, unused cheques, mandate cancellation, insurance reassignment, guarantee discharge, bureau reporting as 'Closed'. Dates each item, cites the RBI basis, and escalates: branch, Nodal Officer, RBI Ombudsman — or National Housing Bank for an HFC. Not for: business/corporate facilities; a one-time settlement ('Settled', not 'Closed'); default/NPA/SARFAESI accounts; a legal heir closing after death (use the lender's heir procedure); or a gold loan (ornaments, not documents).

See stamp duty, registration and witnesses

What follows is the position for this kind of document. The amount is set by the state the property is in and it changes, so the figure for your own state is worth confirming at the sub-registrar’s office before you pay anything.

Stamp duty

None — a letter to close an account isn't chargeable under Schedule I or any State Act; plain paper. Two RELATED documents ARE chargeable: an indemnity bond (lost original, or a third party collecting — rate varies by State), and, for a registered mortgage deed, its reconveyance/release (a separate instrument under that article; who pays is usually set by the sanction letter).

Registration

The letter itself needs no registration (s.17). Three things matter on closure though: CERSAI (s.25, SARFAESI — the creditor must intimate satisfaction to the Central Registrar within 30 days; get the acknowledgment and ID Number in writing); a REGISTERED mortgage's release must itself be registered (s.17(1)(b), extinguishing a property right ≥Rs 100 — papers alone don't clear title); and State-specific deposit-of-title-deeds records (e.g. Maharashtra) needing their own satisfaction update.

Notarisation

Not required — an acknowledged copy protects you, not a notarised one. Two exceptions: a representative collecting originals needs an authority letter (often notarised by lender preference, not law); and a lost-original indemnity bond is usually notarised too.

Witnesses

None — a letter, not a deed. What matters is every borrower/co-borrower signing to match the lender's specimen; sign two copies, one returns stamped.

Talk to a lawyer about this document₹3,539 including GST (₹2,999 + 18% GST), per documentRequest Stamp Paper

Sample preview — placeholder answers, not your data

Rohit Anand Kulkarni
Sneha Rohit Kulkarni
X
Mobile: +91 XXXXX XXXXX
Email: rohit.kulkarni@example.com

Date: 5 April 2026
Place: Pune

To
The Branch Manager
Bank of Baroda
X

SUBJECT: LOAN ACCOUNT NO. HL/MUM/0043921887 — Request for foreclosure statement

Dear Sir / Madam,

  1. MY ACCOUNT

- Loan account number: HL/MUM/0043921887
- Type of loan: Home Loan
- Borrower: Rohit Anand Kulkarni
- Co-borrower: Sneha Rohit Kulkarni
- Customer ID / CIF: CIF 8830461
- Registered mobile: +91 XXXXX XXXXX
- Registered email: rohit.kulkarni@example.com

  1. WHAT I AM ASKING FOR

I wish to close the above Home Loan account in full. This letter sets out what I am asking you to do and the date by which I expect each item. Please deal with it in writing. I am keeping a copy.

  1. FORECLOSURE STATEMENT

Please issue a foreclosure / final settlement statement for this account, valid up to 1 April 2026, showing separately:

- the principal outstanding as on that date;
- interest accrued up to that date;
- any pre-payment or foreclosure charge, with the clause of my sanction letter under which it is levied;
- every other charge, itemised, with the head under which it is levied;
- GST, if any, shown separately;
- the total amount payable as on that date; and
- the per-day accrual after that date, if the figure is not met by then.

Please also tell me the exact mode of payment you will accept, and give me the details I need to make it — the beneficiary name, account number and IFSC for NEFT or RTGS, or the payee name and the branch at which a demand draft or banker's cheque must be made payable. If you will accept payment only in a particular mode, say so plainly, so that my payment is not returned for the wrong instrument.

  1. PRE-PAYMENT AND FORECLOSURE CHARGES

If this loan carries a floating rate of interest and was not taken for business purposes, please confirm in writing that no pre-payment or foreclosure charge is being levied or has been levied. The Reserve Bank of India has directed regulated entities not to levy pre-payment charges on floating rate loans granted to individual borrowers for purposes other than business. The current instrument is the Reserve Bank of India (Pre-payment Charges on Loans) Directions, 2025, dated 2 July 2025, which apply to loans sanctioned or renewed on or after 1 January 2026; earlier RBI circulars to the same effect govern loans before that date. If you are levying any charge, please state the amount, the clause of my sanction letter you rely on, and the RBI instruction that permits it.

Questions about this document

What does the Loan Closure Request Letter cost on Kaagazaat?

₹99, GST included.

Launch period: downloads are free for now. The prices shown apply once payments open.

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