It’s a mix of pleasure and relief clearing off your Home Loan. Now, you own the home without any overheads hanging. No EMI dedication from the coming month. The effort you took over the years right from Applying for the loan, Down payment, and sincerely paying your EMIs every month has born a sweet fruit of your absolute ownership of the property.
Celebrating the dream of owning a debt-free home, you have to complete certain tasks that might make a direct impact on your Property records and Credit Score. Some due diligence here will relieve you of the hassles you might face in the future during the sale or transfer of property. Here’s what you need to do after clearing our Home Loan.
Get a NOC (Non-Objection Certificate) and NDC (No Due Certificate) from the lender
A ‘No Dues’ Certificate (NDC) from the lender is one of the most important documents that should be collected after the complete repayment of the loan. The NDC states that all the dues owed by the borrower have been settled and the lender does not have any claims or rights on the pledged property.
A No Objection Certificate from the lender will act as an official document to contest legal changes such as the removal of lien in official property documents. The document must mention the crucial details related to the housing loan, including the Property address, Borrower’s name, loan account number, loan amount, starting date, and loan closure details. It is prudent to make duplicate and soft copies of the NDC and NOC to ensure smooth transactions with respect to the property in the future.
Get back Original Documents back from the lender
Ensure you get back all the documents you submitted while applying for the loan, especially the Property Documents. Other documents include a Title deed, Sale Deed, Power of Attorney, and Loan Agreement. Make sure all the documents are in good condition and all pages are intact.
Ensure Property Lien is removed
Lenders after sanctioning the loan put a lien on the collateral property that will prevent the borrower from selling their property. When your loan is cleared off, make sure to remind the lender to remove the put lien. The process would require a requisite visit to the local registrar’s office with the lender or their representatives.
Get an updated Non-Encumbrance Certificate
It is an absolute necessity to get an updated Non-Encumbrance Certificate. It is a legal document that contains a property’s detailed records of past financial transactions. When your Home Loan is settled, the cleared-off transaction must appear on the Certificate. Only when this document is updated will the lien on the asset will be removed.
Review updated Credit Bureau Records
In general, it takes 3-4 weeks for the credit records to get updated from the Lender to the Credit Bureaus such as CIBIL, Experian, Equifax, etc. It will definitely be helpful to keep track of the Credit reports. When the Home loan is cleared off, check your reports and see if there are any disputes. In case there are any, you can raise a concern, and it will be sorted out within 45 days.
It’s a very unique feeling to have when all your Loan repayment has been completed. You have extra cash in your hands from the month. All because you happened to work with a good and trusted lender. If you are looking for your next Home Loan in Bangalore, give Money Mango a try to get the best Interest rates from India’s most reputed Banking and NBFC lenders.