Paying the final instalment of your home loan brings a unique sense of relief and satisfaction. The journey—from applying for the loan, arranging the down payment, and making EMIs month after month—finally rewards you with complete ownership of your home.
However, while you celebrate owning a debt-free home, you must complete a few important tasks. These steps help maintain your credit history and protect your legal rights as a property owner. A little care now will save you from complications if you decide to sell or transfer the property.
Be sure to collect all the documents you submitted when taking the loan. These typically include the sale deed, title deed, loan agreement, and power of attorney. Ensure that these are in good condition and all pages are intact.
This is a critical document stating that the lender has no outstanding dues or claim over the property. The certificate should clearly mention important loan details such as the borrower's name, property address, loan account number, sanctioned amount, start date, and closure date. Make photocopies and digital copies for future reference.
Sometimes, lenders place a lien on the property to prevent its sale until the loan is cleared. After repaying the housing loan, you and a lender representative can visit the Registrar’s Office to have this lien removed.
The Non-Encumbrance Certificate (NEC) is a legal document that shows all financial transactions related to the property. After loan closure, ensure the certificate reflects that the full housing loan has been repaid.
Lenders usually take 20–30 days to update your credit records after closing the loan. It’s wise to obtain your credit report and check that the repayment has been recorded accurately. This will help maintain a healthy credit score.
Property ownership involves several legal responsibilities that must not be ignored. Delaying these post-loan tasks can cause complications in the future, especially if you plan to sell or transfer the property. It’s always better to handle these formalities right away. Settling records promptly not only protects your legal ownership but also saves you from stress later on.
Also Read - What is a Home Loan