After completing your home loan, it’s essential to know certain things. Many people forget to collect several documents related to their homes from the bank after they finish repaying their home loan. Therefore, if you have taken a home loan, find out which documents you need to request from the bank.
Owning a dream home of your own is a common aspiration for many. However, purchasing a house without a loan seems impossible for the average person because such a significant amount is not readily available to everyone. Therefore, you take a loan from the bank to buy a house or a flat. This loan lasts for 20 or 30 years and costs more than half of your life to repay.
According to Reserve Bank’s statistics, in March 2023, people had home loans worth ₹19,36,428 crore, which is increasing at an approximate rate of 15% annually. When repaying the home loan, it’s important to consider certain things when the time comes for the last installment. If you do not pay attention to these things after closing the loan, you might face many problems in the future.
Let’s find out which important tasks occur after completing the last installment of the home loan:
Requesting Your Original Documents from the Bank
Firstly, check if any of your original documents are held by the bank. Before taking a loan, banks keep some of your documents for security. These include essential documents like loan agreements, sale deeds, etc.
Update Property Records
When your home loan is closed, update any paperwork related to your filing and rejection with the bank.
Request Post-Dated Checks from the Bank
When taking a loan, banks issue post-dated checks from your account. So, if you have completed the loan, don’t forget to ask the bank for those checks back, as they can use these checks to recover their money if EMI payments fail.
Take a ‘No Due Certificate’ from the Bank
Make sure there are no remaining dues. It is essential to take a ‘No Due Certificate’ from the bank after repaying the home loan.
Important information to include in this certificate: Borrower’s name, property address, loan account number, loan amount, loan initiation date, and the loan repayment date.
Transfer the Bank’s Rights from the Property
When you take a home loan from the bank, they have a right to your property until the loan is repaid. This right is called a lien. The bank protects itself from selling your home in the future. Therefore, it is important that after closing the home loan, you must take your property’s rights back from the bank. For this, you will need to visit the bank along with the branch manager.
Updated Non-Encumbrance Certificate
Every bank has a legal advisor. After understanding the technical details related to the land and individuals, legal advisors prepare a report. These documents contain details of all financial transactions related to your property, such as when the property was sold, to whom, and at what price. These documents also mention when the loan was taken and for how much. It is important to note that after closing the loan, you need to request an updated certificate from the bank, which includes details of your repayment from the first to the last payment.
Update Your Credit Report
Many times banks do not inform credit companies about the closure of their loans, so your closed home loan still shows as active on your credit report. This can negatively affect your credit score. Therefore, it is important to update your credit report after closing the loan.
If you have completed all these tasks after closing your home loan, now you need to keep all the documents received from the bank and the registrar’s office organized and safely stored. Keep both hard and soft copies. After organizing all your documents properly, you can now live comfortably without any worries.
We take pride in having comprehensive knowledge about the real estate market in various areas such as Mumbai, Navi Mumbai, Thane, as well as surrounding regions like Karjat, Neral, Vangani, Badlapur, among others. To provide our customers with the best options available, we have utilized this knowledge. Contact MakaanBhai.com now for a secure transaction in your home. We, MakaanBhai.com, are the number one property advisors in Mumbai with zero brokerage fees, and our experienced professionals are committed to guiding you through the entire process.
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