All You Need to Know About Home Loan Foreclosure

by Editor April 7, 2023

Most people in India take a home loan to buy or build a house. Once the home loan is assumed, the lines of stress run deep on the borrower’s forehead. In such a situation, everyone tries to pay off the home loan as soon as possible.

So if you are also determined to repay your home loan before the deadline, then it is a good thing.

And if you are going to finish the home loan very soon, then definitely keep in mind the tips that we are going to give you.

By the way, if the home loan is not very large, let it run until the time limit; this will give you a tax exemption. Well, now let’s talk about what should be done to repay the home loan ahead of time.

1) Inform the Bank or Finance Company

If you have thought that now you have to clear your home loan and you have enough money, then first of all go to the bank, housing loan company, or finance company from where you have taken the loan and ask for your outstanding amount.

Also, don’t forget to ask about the interest charged on it.

2) While Making the Payment

When you go to the bank to make a payment, do a double check to make sure there is no money left.

Because if the balance remains, the bank will recover it from you along with interest. It would be better to ask before making the payment so that there is no hassle later.

3) Collect Property Documents

Immediately after depositing the amount, you should ask the bank for all the documents for the property.

Especially notice that the bank is handing over the original copies into your hands. Do not take a photocopy if one is given. Yes, the bank will hand over the documents to you only when the payment check is cleared.

4) NOC From the Bank

Do not forget to get a No Objection Certificate (NOC) from the bank. Because NOC is the only proof that shows that you have repaid all the loan to the bank,

5) When a Lien Letter is Required

When you need a lien certificate, write an application to the registrar, take the NOC from the bank, and go to the registrar’s office. From there, you will get the lien letter.

6) Encumbrance Certificate

You will have to apply to the registrar’s office after one month to get the encumbrance certificate. At that time, you will have to attach a copy of the NOC. This certificate shows that only you have rights over your property.