Home Loan Closure Process

Your home loan closure process starts after paying the last EMI. In an ideal world, you should get all your property documents, NOC, Lien removed automatically and a Thank you note sent from the Bank.

Closure Application

You need to send a written letter/application for return of original documents. You need to mention

having paid the EMI with no dues left. You may attach proof of EMI payment.

It is good practice to mention the list of documents you expect the bank to return.

Original Property Documents, NOC

Collect all your original documents(In original condition) from Bank

If you have paid for it, you should get a receipt for it. NOC ( No Objection certificate Or No Due certificate Or) at home loan

closure is the proof that you have completely paid the loan and property is debt free. (interest + principle) . Look for this line in

your Bank’s NOC letter.

Remove That Lien

Find out from your bank if a lien was created against your property. If Yes, arrange with the

banker to accompany you to registrar office and help remove the lien. When the changes are done,

its reflected in registrar accounts.

Credit Score Update : CIBIL update

Banks are responsible for updating your cibil score and most of the time, this remains

unaddressed. You do not realize this until your next big financial undertaking. Please ask your

banker to update. The process, once applied, takes 30 days to reflect the new score.

New encumbrance certificate

An encumbrance certificate (EC) is issued by registrar detailing all financial transactions of your property.

Apply at your local Registrar office. You are required to produce loan closure document from Bank. Write an application requesting new EC to Registrar. You can

ask officials there about new EC application.

Full Article at LoanEasy

https://loaneasy.in/home-loan-closure-process/