Know-how, Before You Close Your Home Loan

One of the best days in life for any home loan payer is the day when you have to close your home loan. The customer can experience this day, much before the estimated time line, as loanyantra manages the loan and helps in the process of closing the home loan earlier.

The very usual reasons to close the home loanclosing the home loan

a) Either you pay off prematurely or,

b) Your loan might naturally reach the end of the tenure.

However may be the case, take note of these points before closing the home loan.

  1. No Due Certificate (NDC) – The bank will issue a loan closure letter or NDC stating that all dues have been repaid and there is no outstanding amount in your name. Check and re-check all your details.
  2. Original Documents – After you obtain NDC, take back all the original documents you had submitted at the time of approval or disbursal. The documents can be the original sale deed, prior title deed, power of attorney, builder-buyer agreement, property cost break-up, possession letter, payment receipts, cancelled cheques, tripartite agreement, encumbrance certificate, land and building tax receipts.
  3. Home Lien – Get the home lien removed, if any. You need to submit the bank’s NDC to the local registrar to get the lien removed.
  4.  Inform CIBIL – Request your bank to inform CIBIL about your successful loan closure. The bank will inform you once they have shared the details with CIBIL and you can check your credit score to confirm.

Note : Take back Post-Dated Cheques (PDCs) you may have, earlier, issued to the bank.

Even after successful loan closure, make sure you have all the details of the loan, including bank statements, NDC and prepayment records, in place, for future use.



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