In today's time of inflation, it is not easy to buy a house or a car, this is the reason why people are resorting to home and car loans. On one hand, the duration of a home loan is 15-20 years, and a car loan is 5-7 years, so the burden of EMI is less. But often the work is not over even after repaying the loan. By the way, do you know that it is very important to take NOC, take back mortgage documents, and update CIBIL score after the car and home loan is over, so let's know what is necessary to close the loan?

A loan is a form of support for people.
In today's era, rising inflation is spoiling the budget of the common man. This is the reason why people are resorting to loans for big purchases like a home or a car. The duration of a home loan is usually from 15 to 20 years, so that the EMI remains low and the burden does not increase, but the duration of a car loan is between 5 to 7 years, so that the price of the car can be paid slowly. These car and home loans are becoming a means of realizing the dreams of common people.

Some tasks are important.
When the entire EMI of any loan is paid and the loan period ends, you consider yourself tension-free. But your work does not end here. Actually, after loan closing, it is very important to do some important tasks, such as getting NOC (No Dues Certificate) from the bank, getting the loan status updated in the credit bureau, and taking back the mortgaged documents. If you ignore these, then it can have a bad effect on your credit card.

Original documents
If you are getting the loan closed, then the first step after this is to get back your original documents from the bank or finance company. While taking a loan, you hand over your property papers, vehicle registration documents, power of attorney, cancelled cheque, etc., to the bank. In such a situation, after paying the last installment of your loan, do not forget to take back all these documents from the bank.

No objection certificate
After repaying the loan, it is considered very important to get a NOC i.e. a no-objection certificate. NOC tells that you do not owe any amount to the bank and you have paid all the loan installments on time. It contains your name, address, loan account number, and payment details. This document protects you from any legal or financial dispute in the future.

Pre-closure fee

Apart from this, if you are thinking of repaying the loan before time, then definitely get information about the pre-closure fee. Many banks also charge a penalty of 1% to 5% for repaying the personal or car loan before the stipulated time. So the bank loses interest due to early loan repayment, although this fee is not usually charged on home loans. This is the reason why you must check the foreclosure charge before taking a loan.

Effect on CIBIL score
After repaying the loan, not only does the bank's work end, but you should also check your CIBIL score. CIBIL score is a mirror of your credit behaviour. In such a situation, even after repaying the loan in full, the outstanding amount continues to appear in your credit report, which may cause problems in getting a new loan or credit card in the future, and also has a bad effect on the credit score.

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