Done Repaying Your Home Loan? Here Are the 5 Things You Must Do Now
May 25, 2017 Home Loan
It is indeed every home loan borrower’s wish to repay their loans to the banks as soon as possible and regain full ownership of their respective homes. While it is always welcoming to close your loan accounts sooner than later, home loan borrowers must be aware of several important loan closure procedures in order to acquire full ownership of their house.
So let us discuss what you must do to become the legal owner of your property once you are done repaying your loans:
1. Acquiring all legal documents related to the property held by your bank:
It's no secret that banks keep all the legal documents associated with your property while sanctioning home loan till the time you have repaid the complete loan amount. These documents include sales deed, agreement copies, conveyance deed to name a few. So once you are done repaying the borrowed amount, make sure to personally visit the bank and take control of these highly sensitive legal documents. Also, ensure that all the documents submitted beforehand have been collected. Moreover, the bank will also ask you to sign an acknowledgement stating that you have received all the papers. Make sure you have actually received all the papers before signing any such document.
2. Getting a No Objection Certificate aka NOC:
One of the most important things to do once you have retained all the original documents is to get a no dues certificate from your lending bank. The no dues certificate doubles up as an NOC that establishes the fact that you have repaid your loan successfully and that there is no outstanding amount you need to pay now. Visit the bank personally to get the No Objection Certificate.
3. Ensure that your CIBIL Score is updated:
CIBIL is India's first Credit Information Company (CIC) that collects and maintains records of an individual's payments pertaining to loans and credit cards. It helps you build your credit score and makes it easy to get loans approved in the future. So, once your loan repayment is done, your bank needs to inform CIBIl about the same. This will help update your CIBIL report. Make sure that your bank informs CIBIL about the closure of your loan so that you may find it easy to get loans in the future. Generally, it takes around 60 days for your CIBIL report to get updated.
4. Getting rid of Lien:
For Home loan borrowers with unsatisfying credit scores, banks generally create a lien against their property. Lien is a legal document that restricts the right to sell your property. It is important to withdraw lien after the closure of your loan. To do so, you need to accompany bank’s official to the local sub-registrar office and follow the standard lien withdrawal procedure. This process generally takes around 7 working days to complete.
5. Apply for Encumbrance Certificate:
Once you are done withdrawing lien, immediately apply for encumbrance certificate at the sub registrar's office. Encumbrance certificate implies that you owe nothing to the bank and that you are now the legal owner of the property.
So let us discuss what you must do to become the legal owner of your property once you are done repaying your loans:
1. Acquiring all legal documents related to the property held by your bank:
It's no secret that banks keep all the legal documents associated with your property while sanctioning home loan till the time you have repaid the complete loan amount. These documents include sales deed, agreement copies, conveyance deed to name a few. So once you are done repaying the borrowed amount, make sure to personally visit the bank and take control of these highly sensitive legal documents. Also, ensure that all the documents submitted beforehand have been collected. Moreover, the bank will also ask you to sign an acknowledgement stating that you have received all the papers. Make sure you have actually received all the papers before signing any such document.
2. Getting a No Objection Certificate aka NOC:
One of the most important things to do once you have retained all the original documents is to get a no dues certificate from your lending bank. The no dues certificate doubles up as an NOC that establishes the fact that you have repaid your loan successfully and that there is no outstanding amount you need to pay now. Visit the bank personally to get the No Objection Certificate.
3. Ensure that your CIBIL Score is updated:
CIBIL is India's first Credit Information Company (CIC) that collects and maintains records of an individual's payments pertaining to loans and credit cards. It helps you build your credit score and makes it easy to get loans approved in the future. So, once your loan repayment is done, your bank needs to inform CIBIl about the same. This will help update your CIBIL report. Make sure that your bank informs CIBIL about the closure of your loan so that you may find it easy to get loans in the future. Generally, it takes around 60 days for your CIBIL report to get updated.
4. Getting rid of Lien:
For Home loan borrowers with unsatisfying credit scores, banks generally create a lien against their property. Lien is a legal document that restricts the right to sell your property. It is important to withdraw lien after the closure of your loan. To do so, you need to accompany bank’s official to the local sub-registrar office and follow the standard lien withdrawal procedure. This process generally takes around 7 working days to complete.
5. Apply for Encumbrance Certificate:
Once you are done withdrawing lien, immediately apply for encumbrance certificate at the sub registrar's office. Encumbrance certificate implies that you owe nothing to the bank and that you are now the legal owner of the property.
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