Things to do Once You Have Repaid Your Loan Amount
May 23, 2017 Home Loan
Taking a huge home loan to buy your dream house and choosing the loan term for the repayment is a crucial task. Any wrong move or decision can cost the buyer severely. After years of paying monthly EMIs, after the debt is over, the feeling is unmatched. Being debt free is the best feeling to have.
There are certain things that the borrower needs to keep in mind after the loan amount has been repaid.
1.Ask the bank to release the original property documents:
The property documents and sales papers are with the banks for the entire loan period. Once the borrower has completed the loan term, they should ask the bank to release their documents. Make sure that all the documents received are in order and there isn’t any document missing from the same. Banks don’t entertain later if any document or receipt is missing after the borrower has signed the receipt. It is better to make sure about it before signing it.
2.No objection certificate:
After the debt is over, banks give out a no objection certificate stating that there is no interest remaining on the property and that it is debt free. Make sure that the certificate mentions your name, address, loan amount, loan account number, and all the necessary details clearly. If there is any mismatch or mistake, get it fixed immediately.
3.Get CIBIL score updated:
A CIBIL (Credit Information Bureau India Ltd.) score is the proof of your credit worthiness. Generally, banks or loan lenders do not show any interest in updating the CIBIL score. It is better to ask them to update it as soon as the entire loan amount is repaid.
4.Get Lien removed:
Lien is the transaction registered in the registrars’ office. It prevents the loan borrower from selling the property. If the credibility of the borrower is unsure, then the bank puts a Lien on it. After the loan is fulfilled, a bank official will accompany you to the registrar’s office to get it removed. It generally takes 7 to 10 days for the changes to get reflected.
5.Get a new encumbrance certificate:
It is a very important document. After the loan has been paid the registrar’s office gives a new encumbrance certificate. It mentions all the details about the property and the financial transactions performed on the property.
6.Get legal clearance from the lawyer:
It is better to get a legal clearance from a reputed lawyer, especially if you want to sell the property in future.
7.Keep a detailed track of loan repayment:
Keep the monthly receipts of loan EMI after the loan repayments are done. It is better to keep them; if any issue arrives in future they can help.
8.Get post dated cheques:
If you have pre-paid your loans, get all the post dated cheques from the bank associated with the loan. It is better to destroy them for any misuse in future.
There are certain things that the borrower needs to keep in mind after the loan amount has been repaid.
1.Ask the bank to release the original property documents:
The property documents and sales papers are with the banks for the entire loan period. Once the borrower has completed the loan term, they should ask the bank to release their documents. Make sure that all the documents received are in order and there isn’t any document missing from the same. Banks don’t entertain later if any document or receipt is missing after the borrower has signed the receipt. It is better to make sure about it before signing it.
2.No objection certificate:
After the debt is over, banks give out a no objection certificate stating that there is no interest remaining on the property and that it is debt free. Make sure that the certificate mentions your name, address, loan amount, loan account number, and all the necessary details clearly. If there is any mismatch or mistake, get it fixed immediately.
3.Get CIBIL score updated:
A CIBIL (Credit Information Bureau India Ltd.) score is the proof of your credit worthiness. Generally, banks or loan lenders do not show any interest in updating the CIBIL score. It is better to ask them to update it as soon as the entire loan amount is repaid.
4.Get Lien removed:
Lien is the transaction registered in the registrars’ office. It prevents the loan borrower from selling the property. If the credibility of the borrower is unsure, then the bank puts a Lien on it. After the loan is fulfilled, a bank official will accompany you to the registrar’s office to get it removed. It generally takes 7 to 10 days for the changes to get reflected.
5.Get a new encumbrance certificate:
It is a very important document. After the loan has been paid the registrar’s office gives a new encumbrance certificate. It mentions all the details about the property and the financial transactions performed on the property.
6.Get legal clearance from the lawyer:
It is better to get a legal clearance from a reputed lawyer, especially if you want to sell the property in future.
7.Keep a detailed track of loan repayment:
Keep the monthly receipts of loan EMI after the loan repayments are done. It is better to keep them; if any issue arrives in future they can help.
8.Get post dated cheques:
If you have pre-paid your loans, get all the post dated cheques from the bank associated with the loan. It is better to destroy them for any misuse in future.
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