Will my SB maxgain loan account will still be active after 6 months if principal amount is zero?

Hello Anil,

My Home loan is sanctioned for 55 lacs for under construction property. Got sanctioned the loan from SBI only for safety as I have sufficient funds for next 4-5 installments . I might require the loan amount only in next year 2020.

My query is:

I had opted for full EMI. I need to take at least 1 disbursement in six month As the sanctioned is valid for 6 months. Since I have sufficient funds right now. If I take single disbursement in order to keep the Home loan account active and pay it off immediately then principal amount will becomes zero.

a) Will my loan account will still be active after 6 months? as principal amount is zero

b) should I have to pay the EMI for next month (i.e 53, 000 full EMI for 55 lac sanctioned amount)

What is the best option in front of me?

Regards,

Mallikarjun

Hi Mallikarjun,
Answers to the best of my knowledge:
a) Technically, You loan account can stay valid for as long as your loan tenure even if the balance is zero. But, if you read some of the experience’s in comments, people have received call from SBI asking to either get the disbursement done or close the loan account.

This is understood from the point of view of bank as they are not earning any interest unless you have negative balance in the loan account.

  1. Yes, you will still have to keep paying the FULL EMI.

It is advisable to maintain some balance (i would say 6 months) equivalent to EMI ( 6* 55k) though there is no such written rule.