Home Loan: Your property could be stuck! If you don't do these 5 things after your home loan ends..

Completing a home loan is no less than a relief, but it doesn't mean your responsibility is over. Even after the EMIs are over, several important steps need to be taken to avoid any legal or record-related issues with your property. Let's explore the five crucial steps that must be taken after every home loan closure.

First - Retrieve All Original Documents from the Bank
You submitted all original documents related to your property to the bank when you took out the loan. Now that the loan has been closed, the first step is to submit a written request to the bank to return all the documents. This includes the title deed, sale deed, loan agreement, power of attorney, and link documents. As per the rules, the bank is required to return these documents to you within 15 days of loan closure.

Second - Obtain a 'No Dues Certificate' from the Bank
The second step is to obtain a No Dues Certificate (NOC) from the bank. This certificate proves that your loan has been fully repaid, and the bank no longer has any rights to your property. Be sure to check the certificate for information such as your name, loan account number, property address, loan amount, and closing date.

Third - Remove the 'Lien' (right to mortgage) at the Registrar's Office
When you take out a home loan, the bank registers a 'Lien' (right to mortgage) on your property. After repaying the loan, it is your responsibility to remove this lien. To do this, you must visit the Registrar's office and submit the NOC and documents. Only after the lien is removed do you become the full and legal owner of the property.

Fourth - Update the No-Encumbrance Certificate
The Non-Encumbrance Certificate (NEC) contains information about all transactions related to your property. It keeps a record of the loan while it is in operation, but it is important to update it after the loan is over. For this, apply to the Sub-Registrar's Office with the NOC so that the records clearly show that there are no outstanding dues or mortgages on the property.

Fifth - Update your CIBIL score yourself
Banks often delay updating CIBIL. As a result, your loan closure report shows as pending. To avoid this, you can update CIBIL yourself by providing the NOC and documents. This will improve your credit score and prevent future problems with new loans.

Disclaimer: This content has been sourced and edited from Dainik Jagran. While we have made modifications for clarity and presentation, the original content belongs to its respective authors and website. We do not claim ownership of the content.