Surprising fact: over 40% of bank delays in India stem from incomplete sworn statements, not unpaid balances.
This short guide gives you clear, practical information on preparing a compliant affidavit for loan closure. You will learn what the form must state, why it must be in the first person, and how to keep facts limited to what you personally know.
Draft the document in plain numbered paragraphs and attach exhibits such as bank statements and ID proofs. Sign and have it attested by a Notary Public or Magistrate on the correct state non-judicial stamp paper so banks accept it without delay.
Online services can save time: choose a template, select your State, fill the form and opt for printing on stamp paper or doorstep delivery of a notarisation-ready copy.
Key Takeaways
- Keep statements factual and in the first person; avoid hearsay or assumptions.
- Number paragraphs and mark exhibits clearly when referring to supporting papers.
- Use correct state stamp paper and get attestation in front of a Notary or Magistrate.
- Cross-check loan account details and ID particulars to prevent rejections.
- For procedural clarity, see a concise guide on affidavit evidence and execution at oath and affidavit practice.
- Education-related formats can be adapted for loan closure, but do not overpromise facts beyond your knowledge.
Understanding affidavits in India and when you need one for loan settlement
An affidavit is a sworn written declaration that fixes facts in your own voice and under oath.
What the document is: deponent, oath and legal standing
You are the deponent. You must state facts that are within your own knowledge.
Draft the affidavit in the first person, sign it only before the authorised official, and note whether it is sworn or affirmed. If you cannot read or write, the officer records that the contents were read or explained and understood.
When banks ask for affidavits
- Claim settlement for deceased account holders or disputed payments.
- Education loans: sanction conditions, gap certificates or compliance checks.
- Final loan closure or compromise where the lender needs sworn confirmation.
| Bottom matter | What to include | Why it matters |
|---|---|---|
| Deponent particulars | Full name, age, address and ID | Avoids mismatches with bank records |
| Declaration | Phrase such as “to the best of my knowledge” | Signals personal responsibility |
| Attestation | Date, place, Notary or Magistrate name and designation | Ensures legal validity and acceptance |
How to Write an Affidavit for Loan Settlement
Begin with a clear purpose. State whether you want final closure, a one‑time settlement or a negotiated compromise. A single sentence that names the purpose helps bank staff route the request correctly.
Define the precise purpose
Write a short opening line that identifies the purpose of the affidavit. Use plain language and repeat no more than necessary. Label this as the purpose affidavit if you prefer a formal heading.
Gather facts and supporting documents
Collect recent loan statements, sanctioned amount, outstanding balance, PAN and Aadhaar, and proof of address.
- Reference each paper as an annexure and number them.
- Include the loan account number and exact outstanding sum so figures match the annexures.
- If this concerns an education matter, use the usual education loan exhibits and state the course or sanction details.
Draft in the first person, then affirm and sign
Use short, factual paragraphs in the first person. Limit statements to what you personally know; avoid hearsay.
End with a closing affirmation that the contents are true to the best of your knowledge, sign only in front of the authorised officer, and ensure the Notary or Magistrate records date, place and designation.
- Prepare the draft and print on correct non‑judicial stamp paper if required.
- Carry originals for ID checks, sign before the attesting officer, and get seals on all pages in the right execution order.
- When using online portals, choose the affidavit education or settlement type, make payment securely, and download or request doorstep printing.
Mandatory components and format that Indian lenders expect
Lenders expect a compact, factual affidavit that lists specific personal and loan particulars in clear order.
You start with your full name, age and complete postal address. Add contact numbers exactly as on your ID so the branch can match records quickly.
Next, set out loan particulars: the account number, current outstanding amount from the latest statement, and a realistic repayment plan with instalment amounts and dates.
Include a short purpose paragraph that names the objective — closure, compromise or settlement — and a standard declaration that the statements are true to the best of my knowledge.
“Place verifiable facts only; avoid hearsay and limit statements to what you can prove.”
- Execution details: date, place and your signature before the authorised officer.
- Notary/Public Officer block: full name, designation, registration number, seal and signature.
| Section | What to include | Why it matters |
|---|---|---|
| Deponent details | Full name, age, address, contact | Matches bank records |
| Loan data | Account number, outstanding, plan | Enables verification |
| Execution | Date, place, signature, Notary name | Ensures legal acceptance |
Sample structure you can adapt from education loan affidavits
Adopt a familiar SBI‑style layout with labelled deponent numbers and short, factual clauses.
Begin with Deponent No. 1 (name, aged around years, relationship and address) and Deponent No. 2 if a parent or co‑applicant signs. Use the phrase “around years old” where the template expects a rough age, matching your ID.
Include concise model paragraphs such as:
- A declaration of permanent residence and identification by name and ID numbers.
- A clear statement that there is no other education loan for the same purpose and no prior default.
- An undertaking by the parent or co‑applicant to honour repayment and reimburse State Bank of India for any validated loss, where applicable.
Reference annexures as exhibits: bank statements, ID proofs and any income or college certificate. Mark each annexure (Exhibit A, Exhibit B) and cite them where relevant in the text.
“Use labelled deponent clauses and signed exhibits so branch staff can verify facts quickly.”
- Close with a declaration that the facts are true to the best of your knowledge and belief and have both deponents sign.
- Have the document sworn or affirmed before a Notary Public and include the official’s details.
- Ensure exhibit numbering and signatures are consistent across all pages.
Stamp paper, notarisation, and annexures in the Indian context
Before execution, confirm the correct state stamp value and the notary process. Verify the non‑judicial stamp denomination your State prescribes so the bank or court does not reject the document for incorrect stamping.
Plan your signing. Carry original photo ID when you meet the Notary Public or Magistrate. Sign only in the officer’s presence so they can witness and record your signature and identity.
If you cannot read or write, the officer must certify that the contents were read or explained and that you understood them. This ensures the affidavit carries legal weight.
Annexures and pagination
Prepare all supporting documents: recent loan statements, identity and address proofs, and any certificate you rely on. Mark each with Exhibit or Annexure labels (for example, Annexure A, B, C).
Paginate the full set and initial or sign every page if advised by the notary. Cross‑reference each exhibit in the body of the document so statements link clearly to supporting papers.
- Use a reputable online service if you prefer: choose the affidavit type, select your State, pay, and opt for printing on the correct stamp paper and doorstep delivery.
- Keep a scanned copy of the fully executed affidavit and annexures for quick sharing with your lender.
| Requirement | What you must do | Why it matters |
|---|---|---|
| Stamp and paper | Verify state non‑judicial stamp value and use correct paper | Prevents rejection for improper stamping |
| Notarisation | Sign before authorised officer with original ID | Confirms identity and execution |
| Annexures | Label, paginate and cross‑reference exhibits | Maintains documentary chain and ease of verification |
For an online option that prints on required stamp paper and delivers the completed pack, consider using a trusted provider such as affidavit services.
Special scenarios: education loan settlement, gap certificates, and co-applicants
Certain scenarios — a break in study, a parental undertaking or a final account compromise — need specific wording and clear exhibits. Use concise, bank‑friendly phrases so branch staff can verify facts fast.
Education loan affidavit vs settlement affidavit: an education loan affidavit focuses on course, college, funding use and repayment intent. A settlement affidavit replaces course details with account numbers, settlement sums and timelines.
When lenders ask for a gap certificate: provide the period of gap, lawful reasons (employment, family care), and a statement that no criminal case is pending. Keep explanations factual and attach supporting documents where possible.
Co‑applicant or parent declarations: adopt SBI‑style labels such as Deponent No. 1 (parent) and Deponent No. 2 (student). Include name, aged around years, address, the deponent’s undertaking to reimburse State Bank of India if required, and a clear pledge on repayment.
Common mistakes to avoid and how to create your affidavit online
Clear, provable statements save time and reduce rounds of queries.
Hearsay, vague statements, and mismatched IDs
Avoid hearsay. State only facts you can prove with annexed documents or original papers.
Check spelling of names, dates and ID numbers so bank records match exactly.
Incorrect purpose or missing loan details that delay processing
Give a clear purpose and list full account number, outstanding amount and proposed plan. Missing figures trigger repeat queries.
Using trusted portals
Choose a recognised service that offers pre‑drafted templates, preview, secure payment and stamp paper printing.
Opt for doorstep delivery if you prefer the provider to print on the correct non‑judicial stamp and supply a notarisation‑ready pack.
| Common error | Fix | Why it matters |
|---|---|---|
| Vague statements | Attach labelled exhibits | Speeds verification |
| Mismatched IDs | Cross‑check spellings and numbers | Prevents rejection |
| Missing loan details | Include account, amount, plan | Avoids processing delays |
| Incorrect stamping | Use portal printing or correct stamp paper | Ensures legal acceptance |
Conclusion
, End with a short affirmation that the contents are true to the best of your knowledge. Sign only in the officer’s presence and list the deponent’s full name, signature, date, place and the Notary or Magistrate’s details.
State the purpose plainly and attach labelled exhibits so a bank or branch can verify facts quickly. Keep each statement factual; limit remarks to what you personally know.
Use reputable online services if you prefer: they can draft State‑wise compliant papers, print on the correct stamp and deliver a notarisation‑ready pack. That way your education or education loan paperwork and the loan affidavit are complete, accurate and more likely to be accepted on first submission.
FAQ
What is an affidavit and who is the deponent?
An affidavit is a sworn written statement you make before a notary or magistrate. The deponent is the person who makes and signs the statement, declaring the facts under oath and providing their full name, age, address and contact details for legal standing.
When do lenders require an affidavit for a loan matter?
Lenders typically ask for an affidavit during settlement, closure, compromise or claim processes. Banks also request affidavits for education loan formalities, loan transfer, or when documentation gaps arise and they need a sworn assurance.
What should you state as the clear purpose in the affidavit?
You should specify the purpose precisely — for example, settlement of loan account, closure after final payment, or compromise of dues. A precise purpose avoids ambiguity and speeds up bank processing.
Which documents must you annex to support the affidavit?
Attach loan statements, identity proof (Aadhaar, passport), address proof, bank account details, payment receipts and any gap certificate or college certificate if related to education loan matters. Mark and paginate annexures as exhibits.
How should the affidavit be written and signed?
Draft in the first person, stating provable facts only. Include declarations such as “to the best of my knowledge” where appropriate. Sign in the presence of a notary or authorised public officer who will attest and provide their details on the document.
What loan particulars must appear in the affidavit?
Include the lender’s name, loan account number, date of sanction, sanctioned amount, outstanding balance, EMIs or repayment plan, and any payment order or settlement figure agreed with the bank.
What format and statements do Indian lenders expect?
Lenders expect a clear header with deponent details, numbered paragraphs, declarations about accuracy, purpose clause, annexure list, date and place, signature of the deponent and notary details. Use simple, precise language and avoid hearsay.
Do you need stamp paper and notarisation?
Yes. Use the correct non‑judicial stamp value prescribed by your state for affidavits and get the document notarised or sworn before an authorised officer. Notarisation verifies your signature and the oath.
How do education loan affidavits differ from general settlement affidavits?
Education loan affidavits often include course details, college name, gap certificate explanations, parent or co‑applicant undertakings, and specific repayment commitments tied to student status. Settlement affidavits focus on outstanding dues and compromise terms.
When will a lender request a gap certificate and how should you include it?
Lenders may ask for a gap certificate when there is an education period gap in your records. Annex the gap certificate as an exhibit, reference it in a paragraph explaining the gap and attach supporting college or employer documentation.
What clauses are useful in an SBI‑style affidavit?
Include deponent number and relationship where relevant, affirm no other loans of similar nature exist (if true), a commitment to repay as agreed, and a statement confirming the accuracy of facts. State Bank of India branches commonly accept such clear clauses.
How should you present annexures and exhibits?
Label annexures as Exhibit A, B, C, number each page, and cross‑reference them in the affidavit paragraphs. Ensure each annexure is signed or attested where required and include a list of documents at the end of the affidavit.
What common mistakes delay processing of a loan affidavit?
Avoid vague statements, hearsay, mismatched identity details, missing loan numbers, incorrect stamp value, and unsigned annexures. These errors often cause requests for resubmission and processing delays.
Can you create and get an affidavit online?
Yes. Use trusted portals that offer pre‑drafted templates, stamp paper printing in your state and doorstep delivery, but ensure final signing and notarisation occur in person to comply with legal requirements.
What should co‑applicants or parents include in their declarations?
Co‑applicants and parents should state their relationship to the borrower, any joint liability, commitment for payment or security, and provide their full identification, address and signature before the notary.
How should you phrase declarations about knowledge and accuracy?
Use clear phrases such as “to the best of my knowledge and belief” when asserting facts. This balances certainty with legal prudence and is commonly accepted by banks and courts.