Home Loan : Once you have completed paying off your home loan, the first important thing to do is to collect the original property documents from the bank. These documents include key papers such as the allotment letter, possession letter, sale deed, builder-buyer agreement, and sale agreement. When collecting these documents from the bank, make sure to carefully check each page to ensure that no pages are missing or damaged. This is a crucial step, and you should not neglect it.
After repaying your home loan, it is essential to collect all the original documents to your property. These documents verify your legal ownership of the property and are vital for future transactions. Missing or damaged documents can cause legal issues in the future, especially when you want to sell or transfer the property. The important documents include records about the loan, such as when it was taken, who held the loan, and when it was repaid.
A Non-Encumbrance Certificate (NEC) is an important legal document that confirms there are no financial liabilities on your property, such as outstanding loans or pending transactions. It provides details about your property’s history, such as when it was sold, to whom, and whether there were any loans attached to it. When selling the property, the buyer may ask for this certificate to ensure there are no pending financial claims. Therefore, after clearing the home loan, you should request an updated NEC from the bank.
After you repay your home loan, the bank or financial institution will issue a No Dues Certificate (NDC). This certificate confirms that the loan has been fully repaid and that the lender no longer has any claims or rights over your property.
The NDC should include:
This certificate is important because it proves that you have fulfilled your financial obligations and eliminates any potential legal issues.
After clearing the loan, you should update your credit profile. It is crucial to ensure that your credit score is updated to reflect the loan repayment. If the update isn’t done, it could affect your credit score, making it difficult to get loans in the future. So, keep an eye on your credit report and ensure it is updated as soon as possible.
In some cases, lenders place a lien (claim) on the property when a loan is taken. This means the property cannot be sold until the lien is removed. After you repay the loan, it’s essential to get the lien removed. To do this, you need to visit the registrar’s office with the lender’s official representative to have the lien officially removed.
After paying off your home loan, the most important step is to collect all your property documents from the bank. This will protect your legal rights and prevent any future issues to the property. Additionally, make sure to obtain the No Dues Certificate, Non-Encumbrance Certificate, update your credit profile, and remove any lien on your property. These steps will save you from potential legal or financial troubles in the future.
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