What to do after closing home loan?

There are certain important documents to be collected from bank after home loan closure. The most important ones are the No Dues Certificate and the original property document. There are other documents that needs to be collected as well so let me highlight them here.

What Documents to Collect After Home Loan Closure?

The important documents that you need to collect from the bank after home loan closure are:

• Loan Closure Certificate: This shows you have fully repaid the loan.

• Original Property Documents: Includes the title deed and any other documents you gave as collateral.

• No Objection Certificate (NOC): Confirms the bank has no more claims on your property.

• Statement of Account: Details all loan repayments.

• Post-Dated Cheques: Get back any cheques you provided to the bank.

• Unused ECS Instructions: Retrieve any unused Electronic Clearance Service instructions.

• Lien Release Letter: If applicable, confirms the bank has removed any lien on your property.

Also, be aware of the things to do after closing home loan:

• Collect the documents I mentioned above

• Update your credit report

• Make sure the property records are updated and mention you to be the sole owner

I hope you have got an idea about things to do after the loan closure.

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It's a big relief we get after paying off the EMI. The happiness of not paying the EMI every month does make us stress-free after a long time. But before enjoying the moment you should remember to do the 5 things after closing a home loan. Let us learn today 5 things that we must do after home loan closure.

What to do after closing home loan?

1. Obtain NOC

The important documents after closure of home loan includes NOC. You should obtain NOC from your lender. No- dues certificate or No- objection certificate will help you get other certificates such as Nil-encumbrance and it is also evident that you have paid your dues. The No dues certificate should have all the important information such as the borrower's name, your account number, the time period of EMI deduction, property details, date of close etc. After obtaining the NOC you will become the owner of the property legally. Make sure that all the aspects in the NOC are accurately documented.

2. Take back your original documents

Banks keep the property documents with themselves when you take a home loan. After paying off your loan you should ask for your property documents. Make sure that all the property documents are there. The property documents you should ask for include ale deed, conveyance deed, builder-buyer agreement, power of attorney, payment receipts, possession letter, transfer permission, tripartite agreement, etc You should talk to your lender if you feel your documents are misplaced.

3. Confirm the termination of the lien

You cannot sell your property without the termination of the lien, also the lien may weaken the credit score. Therefore you should get your lien terminated. For this, you need to visit your nearest registrar office along with NOC from the lender.

4. Encumbrance Certificate

A nil-encumbrance certificate or EC should be obtained after you pay off your loan. This certificate contains all the records of your property transaction and it also proves that you are the legal owner of the property.

5. Update your credit

Once you pay off your home loan you should remind your lender to update your credit score. With a good credit score, you can secure a home loan more easily and you can also get a loan at a lower interest rate.

These are some home loan closure procedure you should follow after you pay off your debt.

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