Repaid your Home Loan? What Should you do Now? Homeonline

Dev Singhraha

Relocation Expert

Repaying your home loan is a blissful feeling. It feels like one has gotten rid of all the burden they have been carrying for years. However, your work does not end after paying the last instalment of your home loan. There are still certain things one must remember and do after the loan repayment.

Personally, visit the bank: Generally, after you have repaid your home loan, the bank will get in touch with you via email or phone call and inform you regarding your home loan closure. However, the public-sector banks do not do the same, and it is the responsibility of the loan borrower to visit the bank personally and inform them about the same.

Paperwork: When you take the loan, the bank keeps all the documentation and paperwork with them, and after you have repaid the home loan, the release the documents. The homebuyer must get all the documents released from the bank. The documents include sales deed, mother deed, post-dated cancelled cheques etc. The bank will also issue a non- encumbrance certificate to you citing that you have repaid the entire loan and there is no outstanding payment left. The banks will also get your signature on the document stating that no document is missing. The buyer needs to make sure they have all the documents. If the homebuyer has purchased the property from the developer directly, then some papers stay with the developers. It is vital to release those documents as well.
Insurance: Home insurance and home loan insurance are two very different things. If you have taken home loan insurance from another bank, then you must visit the other bank and show them the documents of home loan repayment. This step is essential in case the need to claim the insurance arises, then the home loan insurance lender might send the amount to the primary lender, causing it a problem later.
Registrar’s office: It is essential to visit the sub- registrar’s office and make sure that all the latest details about the property ownership are mentioned under your property. If there is any mistake, then it is wise to get them corrected.
CIBIL report: After you have repaid your home loan, it reflects in your CIBIL report. You can download your CIBIL report from any of the online platform, and if after a few months your loan repayment is still not reflected then it is better to approach the bank and ask then regarding the same.
Savings: When you pay the home loan, a large sum of your income goes towards the loan repayment. After you have repaid the loan, it is a good practice to save your money for the retirement and future.

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