Is it necessary to inform the bank of the loan been completed?

I am 39 years married with a son and reside in Belagavi. I had availed a home loan of INR 35 Lakhs from a reputed bank about 10 years ago and have regularly paid EMI's. The last couple of EMI's are left and my dues are cleared. Do I have to inform the bank on the loan been completed. Please advise?

Asked by : Vignesh - Belagavi | 329 Views

Congratulations on clearing the home loan and being the proud owner of your own home. Irrespective of whether you are closing your loan at the end of the tenure or prematurely, keep these points in mind to ensure a successful loan closure. 1. Once all the payments towards your loan are done successfully, request the bank to issue a no objection certificate (NOC). Do not fail to check if the NOC has your name, property address and loan account number mentioned clearly. The NOC should also mention that all dues have been paid and the bank or the HFC has no claim on your property anymore. 2. Banks generally give a list of documents they have taken from you at the time of loan disbursal. Keep that list handy to counter check if the bank has returned all the submitted documents. Ensure that the documents are complete and received in good condition, in the presence of a bank official, before signing the acknowledgement. 3. Request the bank to inform CIBIL regarding the closure of the loan account. The process should take about 30 days from date of loan closure.