It is important not to sit back and relax after you have paid the last equated monthly instalment of your home loan. There are a few steps you should follow to ensure that your account is closed properly and all the necessary documents are handed over to you.

Here are the necessary steps you should take:

1. Do not forget to collect all your original documents from the lender
A lot of original documents are submitted when you apply for a loan. These include the registered sales deed of the house/flat, the initial agreement with the vendor for sale of the property, home loan agreement with the bank, prior sale deed/s of the property in case you are not the first owner of the property, the original document of the power of attorney, in case the property was sold through a registered power of attorney, to name a few.

Normally, the lender will have a list of all the documents taken from you.

While receiving these documents, check each and every page, and tally them with the photocopies you have. This process may seem tedious and redundant, but there’s no harm in being cautious.

2. Take the no objection certificate from the lender
This document supports the fact that the loan has been fully paid according to the terms of the lender. It’s a legal document to prove that the lender no longer has rights over the property. It may also prove useful in case you are selling off the property.

3. Take away the lien with the registrar office
The lender may record the lien on the property with the registrar office. If they have done so you may request them to take way the lien after closing the loan. Else, at the time of selling the property, this lien in record will come in the way of selling your property. If the lender delays in doing so, you may with the help of the NOC remove the lien.

4. Updating your information at the Credit Information Bureau of India Ltd
Once your home loan is fully paid off, it is important to update this information at CIBIL. This will help improve your credit rating. While the lender will usually send this information to CIBIL, it’s always better to follow up and cross-check this information. Otherwise, you may face difficulties the next time you want to take a loan.