Mar 28, 2024Homes and People

Checklist for Home Loan Closure

by Godrej Properties Limited



The closure of a home loan account is officially acknowledged when the lender formally declares its conclusion. Several essential procedures must be fulfilled in this process as the same when you apply for a home loan. 

Home loan interest rates and current home loan interest rates whilst opting for the loan are stagnant throughout the tenure of the home loan taken by the lender. 

No specific bank provides the best home loan interest rates as the rates vary from bank to bank depending on the business and industry dynamics. 

Here, we outline key considerations to bear in mind as you navigate the steps towards closing your home loan account.

1. Reclaim Your Essential Documents:

Upon initiating the best home loans application with any lender, the original documents are typically retained by the lender, leaving you with only photocopies. As you approach the closure of your house loans, it is crucial to request the return of all original documents from the bank. Ensure that the received documents are in impeccable condition. Here's a checklist of documents to reclaim from your lender:

  • Title deed
  • Sale deed
  • Power of Attorney
  • Loan Agreement
  • Possession letter
  • Payment receipts, and more.

Furthermore, if any submitted documents are not received from the bank, prompt communication with your lender is imperative.

2. Release the Property Lien

In straightforward terms, a lien grants the bank certain rights over your property until your debt is fully settled. Moreover, it restricts your ability to sell the property. Lenders impose liens as a precautionary measure, enabling them to sell your property in the event of EMI defaults against the mortgage interest rates, recovering the outstanding loan amount as per the agreed mortgage rates. 

Upon the completion of all EMIs and the closure of your home loan account, it becomes imperative to terminate the lien. This ensures absolute ownership of the property and the freedom to sell it in the future without hindrance. To initiate the lien termination process, a visit to the registrar's office accompanied by a representative from the lending institution is required.

3. Secure Your 'No Dues' Certificate (NDC)

Following the final repayment of your home mortgage loan, it's crucial to obtain the 'No Dues Certificate' (NDC), also referred to as the 'No Objection Certificate' (NOC). This document signifies that all EMIs have been successfully paid, clearing any outstanding dues, and consequently, relinquishing the lender's authority over your property.

The NDC should encompass essential details such as the customer's name, property address, loan amount, loan account number, and the commencement and closure dates of the loan account. Additionally, it is prudent to create photocopies of the NOC to facilitate seamless interactions with potential future lenders.

4. Retrieve Your Security Cheques

If you have provided the lender with post-dated security cheques, it is essential to ensure their return upon the successful closure of your home loan account. Prioritize the retrieval of these cheques as part of the conclusive steps in the loan closure process.  



Frequently Asked Questions:

Q. Which bank provides the Lowest Home Loan Rates or Cheapest Home Loan Rates? 

A: It depends from bank to bank based on their business and market dynamics. The rates keep on changing based on various market situations and industry norms. Mortgage Rates Today may be different from the rates that were yesterday and tomorrow. 

Q. What are Home Improvement Loans? 

A: Home Improvement Loans are different from the home loan. It is availed for the renovation of homes.