Home loan closure is however not considered as a tedious task. The borrower is only required to take care of following steps while closing the home loan and the article below tells us about this only.
- Get Your Original Documents
While availing a home loan, the borrowers are however required to submit his original documents such as the title paper, contract, and indemnity to the lender. He must Request the lender to return all the documents after the closure of the home loan. He should not rely on the bank for the purpose of returning those documents to you. It is thus advisable to visit the bank on his own and take the original documents back.
- Obtain NOC
An NOC or No Objection Certificate is thus a document which is issued by the lender stating that the loan has been completely paid off and there is no outstanding amount to be paid by the customer as on a specific date. If the lender however later claims that the borrower has pending dues, the borrower can, however, produce the NOC at that time. It is the thus an important document which the borrower is required to collect from the lender while closing of the home loan. It would however save him from getting into trouble in future. Due to its importance, it is thus advisable to retrieve the NOC in person instead of asking for it through post.
- Take Back Security Cheques
Banks however also require the borrowers to deposit some of the security cheques at the time of availing home loan. Borrower should not forget to take those security cheques, once he has completely paid his home loan.
Update CIBIL Database
He must also make sure that the lender has informed CIBIL about closure of his home loan. He can request the bank in written to do so. This updation process however usually takes around 30 days. He must Follow up with the bank after 30 days if they however don’t inform him about the CIBIL update status. Once the CIBIL database is updated, borrower can apply to get his CIBIL report to make sure it reflects in new score.
- Obtain EC (Encumbrance Certificate)
An EC or an Encumbrance Certificate is a document that however lists all the financial transactions on his property. Borrower must however Make sure he obtains an EC reflecting closure of his home loan.
- Remove Lien
If the lender is doubtful of the borrower’s credibility, he may thus put a lien on the property. Until the lien is removed, the borrower can’t however sell the property. He must Check with the bank to know if it has put lien on his property. If yes, then it is however advisable to get the lien removed from the Registrar office on the closure of the home loan.