If you plan to sell your home, the buyer may request loan-related paperwork from you.
After the loan is repaid, banks offer No Dues Certificates to their customers. However, it is the customer’s responsibility to request a no-dues certificate from the bank once the loan has been returned.
Nothing beats the feeling of finally paying off your loan and being a proud homeowner. And although you’re enjoying the end of your home loan EMIs, you should be aware of all aspects of home loan termination. A home loan is not considered closed unless your lender declares it such, therefore we’ve compiled a checklist that you must tick off to secure your home loan closure and avoid any future difficulties.
According to property expert Pradeep Mishra, it is critical to get all the paperwork from the bank after repaying the home loan. After the loan is repaid, banks offer a No Dues Certificate to their customers. However, it is the customer’s responsibility to request a no-dues certificate from the bank once the loan has been returned. This certificate verifies that the bank owes the customer no money and that their loan has been fully repaid.
Where can this certificate be used?
The no-dues certificate is not only a formal document issued by the bank once the loan has been repaid. It can be widely used in the future. If you plan to sell your home, the buyer may request loan-related paperwork from you. The No Dues certificate comes in handy in this circumstance. By providing this paper, you may reassure the buyer that there are no outstanding debts on your property.
Update your credit profile as well.
Obtaining a no-dues certificate after repaying the debt is insufficient. Remember to keep your credit profile up to date with your bank. You will have no trouble getting a loan in the future if you do this. After repaying the debt, request that your bank update your credit profile. After receiving this information from the bank, check and cross-check your credit score.
If the bank does not update your credit profile even after you have repaid the loan, the loan will be marked as late in your profile. As a result, you may have trouble obtaining another loan in the future. Updating your credit profile is equally necessary as obtaining a no-dues certificate from the bank. Only after completing each of these steps can you be certain of your house loan closure and ensure getting loans in the future.
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