Things to Do Before Closing Your Home Loan

home loan tips

So, we take it that you are all set to pay up the last installment of your home loan EMI. We understand you will be experiencing a unique mix of relief and pleasure while doing it. While you celebrate the achievement of owning a debt-free house, you need to complete certain tasks that have a direct impact on your credit score and property records. After settling your housing loan, you need to ensure that you do these tasks with due diligence.

Your documents

Checklists are a way of life now. Remember the list of documents that you had to present to the bank when you took the loan? Refer to that and ensure that you make it a point to collect all the documents presented to the lender at the time of availing the loan. Some of these documents include the sale deed, title deed, loan agreement, and power of attorney. You also need to ensure that the documents are in good condition, with all the pages intact before you sign the acknowledgment.

The no dues certificate

One of the most important documents which should be collected after the repayment of the loan is the No Dues Certificate (NDC). The NDC ensures that all the dues have been settled and the lender does not have any rights or claim on the property. Double-check the NDC from the lender and make sure that it specifies the address of the property against which the loan was taken, the name of the borrower, and the loan account number.

Lien status

There are times when the lender may put a lien on the property. This prevents you from selling the property. In such cases, the lien should be removed after the repayment of the loan. The procedure will require a visit to the Registrar’s Office along with an official from the lender’s side.


Request the lender to inform CIBIL regarding the closure of the loan account. The process should take about 30 days from the date of loan closure.