Procedure to Remove Lien on Property Mortgaged with SBI for Educational Loan Repayment

After repaying an educational loan in full with the State Bank of India (SBI), the next step is to remove any lien on the property that served as collateral. This process is straightforward, but it requires adherence to specific steps to ensure a smooth procedure. Here’s a detailed guide on how to remove the lien.

Step 1: Obtain a No Objection Certificate (NOC)

The first and crucial step is to obtain a No Objection Certificate (NOC) from your SBI branch. This certificate serves as the official confirmation that the loan has been fully settled, and the bank no longer has any claim on the mortgaged property.

Steps:

Visit the SBI branch where you took out the loan. Request a No Objection Certificate (NOC). Ensure the NOC is formally issued and includes details of the loan repayment, such as the loan amount, the date of settlement, and the total payments made.

Step 2: Submit Required Documents

After obtaining the NOC, gather and submit the necessary documents to the bank. These may include:

Loan repayment receipts. Identity proof of yourself or the property owner. Property documents, including the title deed. Any additional documents requested by the bank.

Step 3: Request for Release of Mortgage

Once your documents are ready, submit a formal request to the bank for the release of the mortgage. This can be done through a written application. Make sure the application is clear and includes all relevant details.

Step 4: Documentation and Paying Fees

At this stage, the bank may require you to fill out specific forms or provide additional documentation. Additionally, there may be minor fees associated with processing the release of the mortgage. Pay these fees as directed.

Step 5: Collection of Documents

Once the process is complete, collect the original property documents that were mortgaged along with the NOC and any other documents confirming the removal of the lien. Keep these documents for your records.

Step 6: Update Property Records

Finally, visit the local sub-registrar’s office to update the property records as necessary. This step ensures that the property records reflect the removal of the lien accurately.

Additional Tips for a Smooth Process

Follow Up: Maintain regular communication with your bank to ensure the process is completed in a timely manner. Keep Copies: Keep copies of all documents you submit and receive for your records. Speak Directly: If you have specific queries or need further assistance, it's advisable to speak directly with an SBI representative or visit the bank branch.

Note: Additionally, you may also need to collect documents from the bank along with a No Lien-No Liability Certificate and submit a request to the Registrar Office to remove the lien or encumbrance. The No Lien-No Liability Certificate should be stored for future reference.