How to Pay a Home Loan in SBI under the One Time Settlement (OTS) Scheme

The One Time Settlement (OTS) scheme offered by the State Bank of India (SBI) allows borrowers to settle their home loan debts with a discounted lump sum. This article provides a comprehensive guide on how to navigate this process effectively.

Step 1: Check Eligibility

Contact SBI Branch or Customer Service Helpline: Begin by contacting your local SBI branch or the customer service helpline to verify your eligibility for the OTS scheme. They will provide you with the necessary guidelines and requirements.

Prepare Documentation: Have the required documents ready, including your loan account number, identification proof, and any additional documents that SBI might request. Maintaining copies of these documents can be beneficial for future reference.

Step 2: Apply for OTS

Submit Application: Fill out the OTS application form provided by SBI. Ensure you have all the necessary details about your loan and the amount you wish to settle. You can typically find these forms at your local SBI branch or on the bank's official website.

Provide Detailed Information: Clearly include your loan details, the reasons for opting for OTS, and the settlement amount you propose. This will help in the smooth processing of your application.

Step 3: Await Bank Assessment

Review Process: After submitting your application, the bank will review it. This process may include an evaluation of your financial situation and outstanding dues.

Settlement Offer: If your application is approved, SBI will provide you with a settlement offer detailing the amount you need to pay under the OTS scheme. Ensure that you review this offer carefully and consult a financial advisor if you have any questions or concerns.

Step 4: Make the Payment

Payment Methods: There are several ways to make the payment of your settlement amount. These include:

Online Transfer: Utilize SBI's internet banking or mobile banking to transfer the settlement amount. This method is convenient and fast. Cheque/Demand Draft: You can also pay through a cheque or demand draft made in favor of SBI. Ensure that the payment is made on time and directly to the specified account. Cash: Some branches may accept cash payments. However, it's advisable to confirm this beforehand to avoid any complications.

Step 5: Obtain Confirmation

Receipt: After making the payment, ensure you receive a payment receipt and a confirmation letter. These documents serve as proof of the settlement and can be useful for your records.

Closure of Loan Account: Finally, follow up with the bank to ensure that your home loan account is officially closed and that your credit report is updated accordingly. This step is crucial to avoid any future complications.

Additional Tips

Consult a Financial Advisor: Before proceeding with the OTS, it's beneficial to consult a financial advisor. They can provide valuable insights into the implications on your credit score and future borrowing capacity.

Keep Records: Maintain copies of all correspondence and payment receipts related to the OTS process. This practice will help you keep track of the entire transaction and can be useful for future reference.

For the most accurate and updated information, always refer to SBI's official website or contact the bank directly. The OTS scheme can be an effective way to settle your home loan at a discounted rate, but it requires careful planning and execution to ensure a smooth process.