Home Loan: Home loan is a long-term loan, which takes many years to repay. But when the last EMI is paid, a great relief is felt in the mind. However, do not be relaxed thinking that the home loan is over. Even after the loan is over, there are some important tasks, which need to be done on time so that any kind of trouble can be avoided in the future.
1. Collect original documents from the bank:
The original documents of your property that you have mortgaged in the bank at the time of taking a home loan, collect them carefully after the loan is over. This may include allotment letter, possession letter, sale deed, builder-buyer agreement etc. While taking the papers, make sure that no page is missing or damaged.
2. It is mandatory to get the lien removed:
While taking a home loan, the bank puts a lien on your property, which means that if you are unable to repay the loan, the bank can claim your property. After repaying the loan, make sure that the bank has removed the lien. Only after removing the lien, your property comes completely in your possession.
3. Get a No Dues Certificate:
After fully repaying the home loan, it is very important to get a No Dues Certificate from the bank or financial institution. This certificate is proof that you have fulfilled all your liabilities and now the bank has no right over the property. All the loan related information should be recorded in it like the date of taking the loan, the amount and the date of repayment.
4. Non-Encumbrance Certificate:
This legal document keeps information about all the financial transactions of your property. It contains information like when, for how much the property was purchased, how much loan was taken, and when it was repaid. It is important to get the non-encumbrance certificate updated after the home loan is over, especially when you plan to sell your property in the future.
5. Update your credit score:
It is important to get your credit score updated after repaying the loan. Make sure to get it updated with the credit bureau through the bank so that your credit score is correct. This will help you in the future for any other loan.
It is necessary to complete all these 5 important tasks on time after the home loan is over. This will not only save you from future financial problems but will also make your credit profile safe and strong.