In today's time, inflation is increasing so much that we have to take loans for our favorite things. Often we take loans to buy our favorite house or our desired car. However, when we go to close the loan, we forget to complete many tasks related to it. Today we are going to talk about these important tasks.
Do not forget these things while closing your home or car loan
Business Desk, New Delhi. Today inflation is taking a toll on the common man. Currently, most people resort to home or car loans to buy their favorite house or car. Most home loans are for a long period. Their duration can mostly be 20 years or less. Apart from this, if we talk about car loans, then these are mostly for 5 or 7 years.
After the loan tenure is over, the borrowers become tension free. However, there are still some tasks left which are very important to be completed. It is very important for us to keep some things in mind while closing the loan.
While taking a car or home loan, the borrower submits the original documents related to his car or house to the bank or financial companies. Apart from this, documents like power of attorney and cancelled cheque etc. are also submitted to the bank. But at the time of loan termination, we should get all these documents from the bank.
If your loan is about to be closed, then do not forget to take a No Objection Certificate (NOC) from the bank. Because through NOC it is known that you do not have any outstanding amount left in the bank. This NOC saves you from future problems.
Therefore, do not forget to take an NOC from the bank at the time of closing the loan. The NOC includes details like your name, address, loan account number, etc.
According to the information received in this regard, many banks charge foreclosure fees or penalty on completing the loan before time. Because banks suffer losses if the loan is paid before time. However, you do not have to pay any such penalty in home loans. On the other hand, a pre-closure fee has to be paid on car or personal loans for finishing the loan before time. This fee can usually range from 1% to 5%. Therefore, it is important to check about the foreclosure charge before taking a loan.
CIBIL score keeps a record of your loan repayment. If your loan has been repaid, then definitely check your CIBIL score. Because sometimes the loan is repaid but the outstanding amount is shown on the CIBIL score. This may cause you problems in getting a loan in the future.
