Home Loan Closure process. How to properly close Home Loan. Detailed Article at : https://loaneasy.in/take-emi-for-home-reverse-mortgage-loan/ 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. Before this article turns into 'fine prints' , here are the main things to know before signing the Bank's acknowledgement letter. Get an acknowledgment receipt of loan closure application from your bank. Banks take 7-10 days to respond to closure requests. 1). Original Property Documents Collect all your original documents(In original condition) from Banks. Here, is a handy list of documents to refresh you. Why its important ? The original documents will be required to prove your ownership and also when selling the said property. Make sure to receive/check all the documents you had given at the time loan disbursement. How to do this ? Your home loan bank has all your property documents. They are responsible for returning it to borrower. Please make sure that banks Do Not hand over property documents to builder as it cause further inconvenience and running around. 2). Home Loan NOC 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. The address of property and account details of borrower/s should be mentioned in NOC. Why its Important ? NOC letter is loan clearance letter. This states that property is now debt free and bank has nothing to do with it. NOC is required for property resale. NOC is also beneficial in updating your credit score How to Do this ? Your Bank is responsible for giving you NOC. Your job is to ask them Or insist on it. 3). Remove Lien A Lien is a transaction registered in Registrar Office against the property. Banks do this to prevent the borrower from the selling the property before paying back loan. Why its important ? Once cannot sell the property with a lien registered against it. Also, the lien transaction suggests property is not completely yours. This is a very important process and takes 10-14 days. How to Do this ? 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. 4). Credit Score update CIBIL scores are your credit worthiness report. Taking

2. 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.

3. 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.

5. 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.

6. 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.

8. 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.

9. 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.

11. Full Article at LoanEasy
https://loaneasy.in/home-loan-
closure-process/