Home Loan

Closing your Home Loan? Ensure these tasks are done


Paying off your home loan and becoming a proud homeowner can be an overwhelming experience. While one feels relieved of not having to pay your home loan EMIs anymore, one needs to understand the process to close a home loan. A home loan isn’t closed until your lender shares a letter confirming that it closed from its end. Here’s a list of things one needs to tick off to make sure the home loan is closed and avoid any problems in the future. Let’s take a look:

  1. Getting together all the original documents.

First, make sure you have all of the original documents you gave to the lender when you’re home loan was processed.

Some of these papers are:

●      Sale Deed

●      Deed Loan Agreement

●      Power of Attorney

Also, make sure that the documents are in good shape when you receive them. You must also check that all the pages of the agreements are intact and none of the pages is missing. If a document is missing, you should ask your lender for it.

  1. Getting the “No Dues” Certificate

A “No Dues Certificate” is one of the most important documents, which is issued by the lender and needs to be collected after paying off a loan. A No-Dues Certificate says that you have paid all of your debts. The lender does not have any rights on the property anymore. The NDC must include information like:

●      address of the property

●      names of the customers

●      loan account number

●      loan amount

●      dates when the loan started and when it ended.

It is recommended that you make copies of the NDC to make sure that things go smoothly in the future. NDC is required at a time when one wishes to sell off the property.

  1. Removal of a Lien on the Property

A lien gives the lender the right to your property until all of the debt has been paid. Liens also keep you from selling the property. Removing liens is an important part of the home loan closing process. To complete this task, you will need to go to a registrar’s office with an employee.

  1. bureau metre

Once a home loan is paid off, apply for the updated non-encumbrance certificate. A non-encumbrance certificate is a legal document that has detailed records of all financial transactions, which happened with the property. The non-encumbrance certificate must show that the home loan is paid off.

  1. Changes to credit scores

After you pay off a loan, your credit report needs to change. It takes about 20 to 30 days for a borrower’s credit score to get updated. Make sure you get a credit report and talk to your lender if your credit score isn’t updated.

  1. Getting Bank Statements for Paying Back a Loan

To avoid problems in the future, it is important to get all loan payment statements from the bank. Keep in mind that if you don’t get all of the statements from the bank after paying back the loan, the loan is not over yet.

  1. Getting all the checks with dates from the past

When applying for a house loan, most banks ask for post-dated checks in case any monthly EMIs are missed. If you haven’t missed any EMIs, collect the post-dated checks from the bank once the loan is paid off.

  1. Advice for people who want to take a loan

The process of closing a Home loan is as important as any other part of a home loan. Therefore, make sure all of the above steps are followed while a home loan is closed.

How to close your account when your home loan is paid off

1. Write a letter to the bank and ask them to send back the original documents you gave them when you got the home loan.

2. If you need copies of invoices, include them in the letter.

3. The bank should respond within 7 business days.

4. The lender will give you back your original documents and send you a letter saying there are no more payments to be made.

5. The bank will also give you a NOC that says it no longer has the right to your property.

6. If the bank has put a lien on your property. you will need to go to the registrar’s office with the NOC and a bank representative to get it removed.

7. If the bank hasn’t put a lien on your property, it will return the title deeds right away.


Even though paying off a home loan gives you a sense of relief and financial security, it is important to finish all of the paperwork and procedures with your bank meticulously. Don’t forget that your loan isn’t over until your bank sends you a NOC letter. 

Visit, Piramal Finance for more in-depth, informative articles on home loan closure rules.