What is the process of closing home loan?

I felt a distinct combination of relief and satisfaction after paying the final installment on my house loan from ICICI Bank. I went to the local branch office of ICICI Bank to get my home loan terminated. Let me share the detailed home loan closing procedure that I followed.

What is the Home Loan Closing Process?

• I visited the nearest ICICI Bank branch.

• I went with the following documents: a demand draft or check, identity and address proof, a passbook, loan statements and an account number.

• I didn't receive any penalties as it was a regular shutdown.

• I then completed a closure form that I received.

• Finally, after receiving the document and form, the bank representative closed my house loan account.

As Sarthak mentioned above, you must ensure to take all original documentation, NDC (No Dues Certificate), and updated Non-Encumbrance Certificate from your lender. Additionally, get your property lien eliminated and your credit report updated. I hope this answer helps you get an idea of the housing loan closure procedure.

Home loan helped me achieve the goal of owning a house. But I realized the real joy of being a house owner when I completed repayment of the home loan. Now, let me tell you that there is a home loan closure procedure that you are required to follow after repaying the entire amount to the bank.

1. Get a NOC certificate

   from the bank as proof that you’ve repaid the loan in full and no dues are outstanding. This certificate should include all the critical details related to the home loan, such as your name, property address, loan amount, etc.

2. Get original property documents

   from the bank including title deed, allotment letter, sale deed, etc. I suggest you ensure that all these documents are in perfect condition, with all the pages intact.

3. Remove the lien on the property

   to prevent complications or legal issues in property ownership. The registrar might ask you to show the NOC certificate from the bank while they approve your request for lien termination.

4. 4

   . Obtain the updated non-encumbrance certificate

   that includes the records of all financial transactions of the property. Getting this certificate from the sub-registrar’s office will certify that the property is free from any monetary or legal liabilities.

5. Update your CIBIL score

   to ensure you are creditworthy. Generally, it takes around 20 to 30 days for the repayment to be reflected in your credit history. Afterward, you should get the credit report and check the updated record.

6. Get bank statements of loan repayment

   to ensure you don’t face any kind of complications in the future. This statement will show the EMI payments made and the total amount debited from your account.

7. Collect loan repayment certificates

   as they are mandatory for filing your income tax return. They will also help you sell off your property without any hindrance.

These are the home loan steps to closing!

I hope now you know how to close home loan.