Home-Car Loan: Most people take home or car loan to shop for home or car. The home loan is long -term. Home loans often take people for 20 years. At the same time, the car loan is for 5 or 7 years. When the financial condition of the people is better, they pay the loan before time or within the scheduled time. In such a situation, if you are also shutting down your car or home loan, then take care of some things. If you do not do so, you can get into trouble later. We are giving you some information that after closing the loan, what things must be taken care of.
Pre-close fee
Many banks and non-banking financial companies (NBFC) impose foreclosure fees or penalty for choosing a premature loan option. In the case of home loans, no fine is imposed, however, many banks charge pre-close fees on car loans and personal loans. This fee can range from 1% to 5% of the outstanding amount. Therefore, check the foreclosure charges before proceeding with a loan closure.
Get original documents
In the case of home loan- banks have to submit several original documents. This includes property paper, power of attorney and cancell check etc. Therefore, after closing the loan, do not forget to take all the important original documents submitted earlier.
Don’t forget to take NOC
Do not forget to take a No Objection Certificate (NOC) after closing the loan. NOC is proof that you have repaid all the outstanding amount and now no loan is outstanding. This document can save you from any trouble in future. So after closing the loan, make sure that you have got an NOC from the bank, which should include your name, address, loan account number and all relevant details.
Request to remove ban
Often, banks impose lien on the borrower’s property to prevent sales. Therefore, after repaying your home loan, it is necessary to go to the office of the Registrar with the bank representative to remove the lien on your property. For vehicle loan, you must go to the Regional Transfer Office to complete the process of removing the mortgage.
Check CIBIL score
CIBIL database records a record of repaying your loan. After repaying the loan, check the CIBIL score. Many times you pay the loan but the arrears are seen in the CIBIL report. This condition can obstruct the application for the new loan. Therefore, review your most CIBIL report and request your lender to update information.
Latest business news