There is nothing as important as having a safe and secure home of your own. It’s natural to feel great joy once you’ve finished paying the final installment of your home loan. However, even as you do so, make sure to complete the subsequent steps to ensure that there are no hassles in the future.
Collect all documents
Once you pay the final installment, make sure to collect all the original documents from the lender. Cross-check them with the list of documents the lender provided you while applying for the loan. Ensure that the documents are not torn or misplaced and the pages are not missing. The documents generally include a) sale deed, b) title deed, c) loan agreement, d) power of attorney, e) income proof etc. Remember to get back the security cheques if you have given any to the lender during the approval of the loan.
Obtain No dues Certificate
No Dues Certificate or NDC gives you a clean chit that you have paid back the full home loan amount. It is important to obtain it from your lender, and it must include: a) address of the property, b) name of the customer, c) loan account number, d) amount of loan, e) date of starting and closure of the loan.
Ensure removal of the lien
When lenders are not sure of your repayment capacity, they often put a lien on your property. This gives them the power to sell your property to retrieve outstanding dues in case you cannot repay the loan. It even stops you from selling the property until the closure of the loan. After your repayment, do not forget to remove this lien from your city’s local registrar office to ensure zero complications in the future transfer of ownership.
Update your credit record
It is necessary to check if your credit record is updated in the credit bureau’s database after the repayment of your home loan. Make sure that your lender informs CIBIL (Credit Information Bureau India Limited) about the closure of your loan. It may take up to a month to show the updated record.
Obtain an updated non-encumbrance certificate
A non-encumbrance certificate is a legal paper that shows a detailed record of the financial transactions related to your property. As soon as you complete your repayment, ensure that it is reflected in this certificate and you obtain the updated one from the sub-registrar’s office. This certifies that your property is free from any legal or monetary liabilities.
With this closure, your days of checking the home loan EMI calculator and changes in the home loan interest rates are finally over. Once you take care of the closing formalities of your home loan, your home is officially and entirely yours!
