Things a Buyer Must do after the Loan Repayment is Complete
Dec 13, 2018 Real Estate News
Often we discuss how to get a loan, the guidelines regarding the same, the dos and the don’ts. But what a buyer must do after the loan is repaid? Your job is not over after you have paid your last instalment, there are things that a buyer must do with due diligence after the loan has been repaid to avoid any confusion in future.
We discuss in detail regarding the same.
The bank also asks you to sign on an acknowledgement document stating that they have handed you all the property documents. You must double check them before signing the paper. It is also asked that one must go to the bank personally to take the property documents rather than bank sending it over to you by post.
We discuss in detail regarding the same.
Possession of the property documents
When you apply for the loan, the bank or the loan lender keeps all the original documents of the property such as sales deed, conveyance deed etc. they also issue you documents listing all the legal property documents that are with them. Once you have repaid your loan, you must ask for the property documents back and cross check it with the list the bank issued.The bank also asks you to sign on an acknowledgement document stating that they have handed you all the property documents. You must double check them before signing the paper. It is also asked that one must go to the bank personally to take the property documents rather than bank sending it over to you by post.
NOC certificate
After you have paid your entire loan amount, it is important to get the NOC certificate from the bank. It is mandatory for the banks to send you the same via post but it is suggested that one should personally go and collect the document from the bank. Also, make sure that the document has all the necessary stamps from the bank.CIBIL score updating
Once your loan has been paid, the banks might not be in a hurry to update your CIBIL score. It should be done as soon as possible if in case you decide to apply for another loan or a credit card. Your credit report should start showing update result within 60 days of your loan closure.Lien withdrawal
If your credit score is poor, then there are chances that the bank has drawn a lien on your property meaning that your property cannot be sold. As soon as you pay off your loan, it is pertinent to get the claim withdrawn. For this, a bank official is supposed to accompany you to the registrar’s office. It can take up to a week for the process to finish.Encumbrance certificate
Once you get the lien withdrawn, get the encumbrance certificate from the bank. This will state that you have paid all your dues and you owe nothing to the bank anymore. The certificate is also a guarantee that the property is owned by you legally.Looking for property portal?
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