List of Documents You Should Get Back After Closing Home Loan

You can close your home loan either by repaying the principal with interest in while loan tenure or you can prepay the loan amount before its original tenure.

At the time of availing the home loan, the borrower needs to submit various documents required for availing the loan. Likewise, at the time of closing the home loan, the borrower needs to remember to take back the documents which are required.

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There are several documents that you should get back after you have closed your home loan. List of documents you should get back after closing home loan has been given below for your reference purpose:

(1) Loan Closure Letter

It is a statement which mentions that the home loan is closed fully i.e. principal with its interest and there is nothing required to be paid by the borrower.

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(2) Loan Statement of Full Loan Tenure

Statement of Loan Account showing the latest credits to your account towards proof that your loan account is closed, should be compulsorily obtained by the borrower after closing the home loan.

(3) Original Documents of Property

You would have submitted various original documents such as:

• Title Deed
• Registered Sale Deed
• Previous Sale Deed
• Possession Certificate
• Property Papers
• Approved Layout Plan
• Sanctioned Map by the Competant Development Authority
• Original Property Tax Paid Receipts
• Copy of Khasra/ Khatauni

You should take back all these original documents and leave nothing with the lender.

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(4) Security Cheques

You would have handed over 3-4 security cheques with the lender that must be taken back afetr you close your loan account. This step is necessary in order to avoid any misuse of these cheques.

(5) No Dues Certificate (NDC)

It is one of the most important dcuments to be obtained by the lender after closing your home loan. No Dues Certificate (NDC) contains following information about the borrower:

• Address of the property
• Name of the borrower
• Loan account number
• Amount of loan
• Date of Starting of the loan
• Date of Closure of the loan

NDC also states that all the dues have been settled by you and the lender now does not have any right/ claim on the property.

(6) Non Encumbrance Certificate (Non-EC)

It is a legal documents which lists all financial transactions on the property in question. It will also reflect the closure of the loan. This will complete the home loan closure.

(7) Get Lien Removed

Lien is the right to keep possession of property belonging to another person until the debt owed by that person is discharged. It is usually imeediately provided by the lender still if the lender is delaying in it, you can get it removed with the help of NDC issued by the lender.

(8) Legal Clearance

A legal clearance from a lawyer is an optional document which will help you when you plan to sell the house.

Our Remarks

Sometimes the return of the original documents takes a time of 3-4 weeks or more as the bank branch does not safe keep these documents and they are held in a central depository. So in such cases, you need to make continuous follow up with the lender and ensure to get back all the documents.

After you close your home loan account by paying back the entire loan, you must get your CIBIL record updated as it will significantly increase your credit score and your financial health will be in good order.

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