Today inflation is taking a toll on the common man. Currently, most people take home or car loans to buy their favorite house or car. Most home loans are for a long period. Their period 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 period is over, the borrowers become tension-free. However, there are still some tasks left, which are very important to be completed. We need to keep some things in mind while closing the loan.

Keep these things in mind while closing the loan
1. Take back the original documents
While taking a car or home loan, the borrowers submit the original documents related to their car or house to the bank or financial companies. Apart from this, documents like power of attorney and canceled cheques etc. are also submitted to the bank. But at the time of ending the loan, we should get all these documents from the bank.

2. NOC is also very important
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 have no outstanding amount left in the bank. This NOC saves you from future problems.

So do not forget to take NOC from the bank at the time of loan closure. NOC includes details like your name, address, loan account number, etc.

3. Check the pre-closure fee as well

According to the information received about this, many banks charge foreclosure fees or penalties on completing the loan before time. Because banks suffer losses when the loan is paid on time. However, you do not have to pay any such penalty on a home loan. On the other hand, the pre-closure fee has to be paid on a car or personal loan to end the loan before time. This fee can usually be from 1 percent to 5 percent. Therefore, before taking a loan, it is important to check about the foreclosure charge.

4. Do not forget to check the CIBIL score
CIBIL score keeps a record of your loan repayment. If your loan has been repaid, then definitely check the CIBIL score. Many times 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.

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