How to Close a Home Loan Account


You will need to submit a few essential documents to the bank officials before your loan account can be closed. These include your aadhaar card, address proof, and OD account ki checkbook. You will also need to fill in a closure form. It would help if you used formal salutations in your letter, like ‘Sincerely’ or ‘Yours Faithfully.’

Documents Required

Closing loan accounts is a significant step, especially if you have paid all EMIs and have no pending amounts. This allows for future investment or even new loan opportunities with the same bank. Closing your account should be done correctly and with all the proper documentation. Usually, banks require your ID proof and address proof when closing your loan account. You may also need to provide a copy of your OD account or checkbook. Make sure you bring all these documents with you to your appointment at the bank. Your letter should begin with formal salutations and include your complete contact information.

Date of Closure

If you have successfully closed your loan account, the bank will issue a Statement of Account (SoA). You should keep this document safe because it is valid proof that you have paid all your dues on time. It can also help you correct errors on your credit score, if there are any.

In the letter, you should mention the date that you want to close your loan account. Then, it would be best if you wrote formal and respectful salutations. You should sign the letter using either “Sincerely” or “Yours Faithfully”.

Once you have written the entire letter, you should include all of the required documents. You should also attach copies of your ID, address, and OD account checkbook. If you have any questions, please get in touch with the bank.

Format of Closure Letter

When you want to close your loan account, you need to submit all the required documents to the bank. A closure letter is a formal document that will let the bank know that you’re repaying your loan in full. It will also tell the bank that you’re no longer in need of this credit facility.

The closure letter should be written professionally. It should begin with a formal greeting such as “Dear Mr.” or “To Whom It May Concern.” You should then mention your name and loan account number at the top of the letter. This will help the bank find your loan information easily. You should also include the reason for your closure request.

In the body of the letter, you should write your address, email address, and phone number. Then, you should write your signature. If you’re using a printed letter, leave four lines of space between the complimentary close and your signature. If you’re sending an email, leave one line of space between the complimentary close and your signature.

When you’re done, you should sign the letter and send it to the bank. The bank will verify the documents and then close your loan account. Once the process is complete, you’ll receive a confirmation letter. The letter will be mailed to you within seven business days of the closure. You can also contact the bank’s customer service department if you have any questions. They’ll be happy to help you.


The fees associated with closing a home loan account include the bank’s service charges as well as the part payment and foreclosure charges. These fees are payable once the EMIs have been cleared and the loan tenure has elapsed. Alternatively, the account can also be pre-closed by the borrower. This is called customer-initiated account closure. In such cases, the fees are lower than those that are charged for bank-initiated account closure.

The letter should start with a salutation such as ‘Sincerely’ or ‘Yours Faithfully.’ It should then include a brief introduction and the purpose of the letter.