I have SBI maxgain home loan account for under construction property which will be completed by mid of 2019. Since beginning I was paying full EMI and disbursement happens on period basic so by the time construction get completed and builder get completely paid, I will have some 4-5 Lacs surplus amount in my home loan account. I wanted to know if bank can release that amount for property registration or not? What I know that I cannot get surplus amount withdrawal power until property get registered.
Also is it possible that I can switch my home loan to some other bank (e.g. Bank of Baroda) and that 4-5 lac get adjusted towards principal amount?
Your understanding is correct. You can’t withdraw the surplus available in available balance for registration. Switching is possible. But do you think it is a right way?
Thanks for confirmation. Right way as in per rule book or not, even I don’t know and that is why I asked the question. If you are saying is it ethical way or not, I think it is correct. Say if you want to close down your loan account bank does full/final settlement, principal amount get adjusted towards surplus fund. My concern is if I cannot use my money when I need it then there is no meaning to have it in bank.
It is up to you to decide regarding switching. But as per me, SBI MaxGain is the best tool to manage the liquidity of cash and earn the tax-free return equal to your home loan interest rate.