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What is Home Loan Foreclosure?

Home loan foreclosure is a prepayment process that allows a borrower to repay his/her entire loan outstanding in a lump sum instead of requiring EMI payments. It is an affordable repayment option that allows a borrower to save on the total loan liability through reduced interest levy and helps repay the debt earlier than the set tenor.

Application for foreclosure request requires a borrower to fill up a home loan foreclosure letter provided by the lender with necessary loan details.

What is Home Loan Foreclosure Letter? 

Under standard procedures, a foreclosure letter for home loan is addressed to the lending branch’s manager, with necessary personal details of the borrower. When filling up the request letter, provide loan account details like the account number, type of loan, prepayment amount, and the date of prepayment.

Applicant also needs to provide payment details and source of the funds along with the details of the financial institution with which one maintains an account to be utilised for such payment.

With this understanding of what is a foreclosure letter for home loan, check out how to get your hands on one.

How to Get Home Loan Foreclosure Letter from Bajaj Housing Finance? 

To get foreclosure letter from Bajaj Housing Finance, visit one of our nearest branches and request for the same. Fill up the request letter with necessary details and submit with your signature and date of request at a designated branch.

As foreclosure usually involves payment in a lump sum, financial institutions prefer such payment be made online or through cheque issue instead of any other mode.

Consider the below essential factors before opting to foreclose your home loan account.

  • When foreclosing your home loan account with Bajaj Housing Finance, the total amount payable should not be less than 3 EMIs.
  • If the home loan EMIs comprise a substantial portion of your monthly income, going for a foreclosure can be smart option to free up the finances.
  • Consider any other essential financial responsibility at hand before going for a home loan foreclosure as it can involve significant outflow of funds.
  • Check if you are opting to prepay your loan and foreclose the account with a surplus funding only, which is an idea option and keeps your finances in place.
  • You can also consider the return on any other investment with these funds as compared to the interest saved through foreclosure and make an informed financial decision.

Bajaj Housing Finance provides online foreclosure calculator, a dedicated digital tool that enables you to estimate the total amount you need to pay towards home loan foreclosure. Enter the number of EMIs already paid and the month of foreclosure to arrive at the payable amount.

The prepayment facility requires one to pay the total loan outstanding to foreclose his/her loan account and obtain an NOC towards complete loan repayment. Compare your foreclosure amount with the total loan liability calculated initially to determine the total interest savings made. Proceed to obtain and fill up a home loan foreclosure letter and submit to complete your repayment.