Congratulations on nearing the end of your home loan journey! Successfully closing your home loan is a significant milestone that requires careful attention to ensure all formalities are completed correctly. This guide provides a detailed checklist to help you navigate the home loan closure process smoothly.
Upon full repayment of your home loan, your lender is obligated to return all original documents submitted during the loan process. These typically include:
Ensure that all documents are in good condition and complete. According to regulations, lenders should return these documents within 15 days of loan closure.
An NDC is a crucial document that confirms you have fully repaid your loan and that the lender has no further claims on your property. The certificate should include:
Verify all details for accuracy and keep multiple copies for future reference.
During the loan tenure, lenders often place a lien on the property, restricting its sale or transfer. Post loan repayment, it's essential to have this lien removed. Visit the local Registrar’s Office with a bank representative and the NDC to complete the lien removal process
An NEC is a legal document that records all financial transactions related to a property. After loan closure, obtain an updated NEC from the Sub-Registrar’s Office to reflect that the property is free from any encumbrances. You'll need to submit the NDC and other relevant documents during this process.
It's vital to confirm that your credit report accurately reflects the closure of your home loan. Lenders typically update this information within 30 days. Obtain a copy of your credit report from credit bureaus and verify the status. If discrepancies exist, contact your lender promptly to rectify them.
If you provided post-dated cheques (PDCs) during the loan process, ensure you retrieve any unused ones upon loan closure. Additionally, collect all loan repayment statements from your bank. These documents serve as proof of payment and can be crucial for future financial transactions or disputes.
Store all retrieved documents, including the NDC, original property papers, updated NEC, and repayment statements, in a secure location. These documents are essential for any future property transactions, legal matters, or loan applications.
Closing your home loan is more than just making the final payment; it involves a series of critical steps to ensure your property is free from any financial obligations and that your credit history accurately reflects this achievement. By diligently following this checklist, you can confidently complete your home loan journey and enjoy full ownership of your property.