Checklist to close your Home Loan
As someone has said somewhere that Home is the greatest asset to a person, but also his greatest responsibility. Whenever a person can close his loan account, he feels very relieved and happy too. Now the house is his own. Having a house free of debt is one of the desires that we all love. House sweet, we say. However, this happiness will always be with us if we do not forget to take some important steps when paying off our home loan in full and thus close the home loan account. Not taking these steps can turn our happiness into a nightmare.
What are the necessary steps?
We will explain it in the following paragraphs. But a word of warning at this stage! Many of us will read this article and have closed the home loan and have found out that they have missed all or some of these steps should not panic. If they miss it, they can still have it now. But please do not procrastinate!
Do not forget to collect all your Original Documents from the Lender
When we take home loan, we simply enter some original documents, especially among them, are the registered sale deed of the house / flat, preliminary agreement with the vendor for sale of real estate, home loan agreement with the bank, previous sale deed / s property (if you has purchased the resell property), the original copy of the power of attorney (in case the property was sold by a power of attorney), to name a few. Checklist to close your Home Loan
Typically, the lender will have a list of all documents taken from you. Please check each document from this list. Have you received all the documents together?
Typically, in your home loan account as the borrower will send between 15 to 20 documents. Therefore when accepting them it may happen that when receiving documents some important pages of documents are lost.
Why this is happening is that at present, these home loan documents are kept in a centralized location and can also be outsourced. While loans have been sanctioned and disbursed, for safekeeping, sent to a centralized location, through various hierarchies. Similarly, when paid off, the documents run through a similar hierarchy.
It may also be sent by courier if you wish. However, please, never choose this option. For this reason, it may happen that in some documents some pages are torn and missing. So be careful and keep in mind. Checklist to close your Home Loan
Please grab a No Objection Certificate (NOC) from the Lender
In a hurry you pay off the loan and receive all the documents, do not forget to take the NOC from the lender. This is a useful document for you to support that the loan has been settled in accordance with the satisfaction of the lender. NOCs are legal documents to prove that the lender has no rights to the property. It may also be useful if you sell the property.
Remove Lien with the Registrar Office
Sometimes, the lender can record the liens on the property with the registrar’s office. If they do then you can ask them to take the path of the liens after closing the loan. Another, when selling a property, these liens will come in the way of selling your property. If the lender is delayed to do so, you may with the help of NOC remove the liens at the registrar’s office.
Updating with India Credit Information Bureau Ltd. (CIBIL)
Updating your home loan payment is required from your point of view to improve your credit rating. Typically, the lender will upload payment information by CIBIL within a few days, even though it will officially take 30 days to do so. But then the lender may forget or make a human error. It is therefore good for you to follow up with the lender to ensure that updates are made.
In our desire to close home loans, it happens in many situations so we may lose one or more or all of the above steps. This checklist will help you close the loan once and for all without any future worries.